In a major policy shift, India is moving closer to opening its nuclear power sector to foreign investment and private participation, as the Atomic Energy Commission (AEC) has approved a new FDI policy under the proposed SHANTI Act framework.
The policy has now been sent for inter-ministerial consultation, marking a key step towards reforming India’s traditionally state-controlled nuclear sector.
What Is the SHANTI Act?
The SHANTI Act (2025) — Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India — is a landmark reform aimed at:
- Opening nuclear energy to private and foreign players
- Modernising regulatory and legal frameworks
- Accelerating clean energy capacity
Earlier, India’s nuclear sector was largely restricted to government control, limiting private and foreign participation.
Key Development: FDI Policy Cleared
The Atomic Energy Commission has:
- Approved a new FDI policy for nuclear power
- Sent it for inter-ministerial consultation
- Initiated steps to attract global investment and financing
This is expected to unlock large-scale capital inflows into the sector.
Why This Reform Is Needed
India has set an ambitious target of:
- 100 GW nuclear power capacity by 2047
To achieve this, the country will require:
- Around ₹20 lakh crore investment
Such a massive requirement cannot be met by the government alone, making FDI and private investment essential.
Role of Liability Reform
One of the biggest barriers to foreign investment in India’s nuclear sector has been:
- Strict supplier liability laws
The SHANTI Act proposes to:
- Dilute liability provisions
- Align India with global norms
- Reduce legal risks for foreign companies
This is expected to significantly improve investor confidence.
Technology and Future Roadmap
India has already achieved progress in:
- Pressurised Heavy Water Reactors (PHWRs)
- Fast Breeder Reactor (FBR) technology
The next focus is:
- Indigenisation of Light Water Reactor (LWR) technology, which dominates globally
This will help India become a reliable global nuclear technology partner.
Challenges Highlighted
Despite reforms, some concerns remain:
- Limited enthusiasm from private players so far
- High project costs and long timelines
- Need to reduce tariffs and approval delays
These factors could affect the pace of nuclear expansion.
Strategic Significance
The move is important for:
- Energy security (stable baseload power)
- Clean energy transition (low-carbon source)
- Global partnerships and technology transfer
- Industrial growth and innovation
Conclusion
The approval of the FDI policy under the SHANTI Act framework marks a turning point in India’s nuclear energy policy. By opening the sector to private and foreign participation, India aims to accelerate capacity expansion, attract global investment, and strengthen its position in the clean energy transition.