¨ India has opened its nuclear energy sector to private Indian companies and foreign partners through the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
¨ The Act repealed the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
¨ The SHANTI Act allows private companies to build, own, and operate nuclear facilities under a regulated approval system.
¨ The Department of Atomic Energy issued draft rules under the SHANTI Act on 14 August 2026.
¨ Under the proposed rules, private companies can obtain in-principle approval for site preparation, land acquisition, and vendor selection before receiving a formal licence.
¨ The proposed framework also allows the import and use of foreign reactor technologies with proven operational records overseas.
¨ Regulators can stop the progress of a project at critical stages if required safety conditions are not fulfilled.
¨ India is pursuing a two-pronged nuclear expansion strategy under the Nuclear Energy Mission.
¨ India has set a target of achieving 100 GWe of nuclear power capacity by 2047.
¨ The strategy includes the development of indigenous 700 MWe nuclear reactors.
¨ India also plans to develop five Small Modular Reactors (SMRs) by 2033.
¨ Small Modular Reactors (SMRs) are compact nuclear reactors designed for relatively smaller power output and modular deployment.
¨ Private-sector participation became visible on 2 May 2026, when Adani Power incorporated two nuclear-focused subsidiaries.
¨ The two subsidiaries are Rawatbhata-Raj Atomic Energy Ltd and Coastal-Maha Atomic Energy Ltd.
¨ These companies were created for potential nuclear projects in Rajasthan and Maharashtra.
¨ The SHANTI Act permits up to 49% Foreign Direct Investment (FDI) through joint ventures.
¨ The Act also provides a framework for private ownership and operation of nuclear power plants under government regulatory supervision.