The OUR government on Monday welcomed the passage of the Sustainable Use and Development of Nuclear Energy for Transforming India (SHANTI) Act, saying it would pave the way for nuclear cooperation between Washington and Delhi.
Hours after President Droupadi Murmu expressed her approval of the SHANTI Bill on Monday, the US Embassy in India posted: “We welcome India’s new SHANTI Bill, a step towards a stronger partnership in energy security and peaceful civil nuclear cooperation.”
“The United States is ready to undertake joint innovation and research and development in the energy sector,” the post added.
The SHANTI Act, passed earlier by both houses of Parliament and passed on Monday, repealed the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, covering all laws related to the civil nuclear sector and made the same available for participation by private players.
Under the legal framework, private participation in the nuclear sector is permitted under the strict regulatory oversight of the Atomic Energy Regulatory Board.
The enactment of the new legislation comes months after Finance Minister Nirmala Sitharaman announced plans to open up the nuclear sector to private players in her Union Budget speech in February.
What changes under the new law?
Until now, nuclear power generation in India has been largely restricted to government entities such as the Nuclear Power Corporation of India (NPCIL) under the Atomic Energy Act of 1962.
The new law opens up space for private players, allowing firms to participate in fuel cycle activities, equipment manufacturing, power generation and even nuclear power plant operations, all under supervision.
Crucially, the new law also allows up to 49% foreign direct investment (FDI) in certain activities of the nuclear sector, which is expected to help bring capital into the sector as well as accelerate research and development and the deployment of new technologies.
According to the government, the new law will help India’s clean energy transition, in addition to helping New Delhi achieve its long-term goal of achieving 100 gigawatts of nuclear capacity by 2047.
At present, India’s nuclear power capacity is 8.78 gigawatts, which is expected to increase to over 22 gigawatts by 2031-32 after the completion of domestic reactors, which are being developed in international collaboration.
