The Union Cabinet has cleared the Atomic Energy Bill 2025.
The legislation is called SHANTI, or Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
It is the biggest reform in India’s atomic energy sector since its creation. It ends the decades-long monopoly of the Department of Atomic Energy and allows private companies to enter the field for the first time.
The Bill is expected to be tabled in Parliament early next week during the Winter Session.
India has the full capability to produce nuclear energy from start to finish. The government wants nuclear power to become the backbone of India’s clean energy plan.
India currently runs 25 reactors with a total capacity of 8880 megawatts. Seventeen more reactors are under construction. The target is 22000 megawatts by 2032. The long-term goal is 100 gigawatts of nuclear power by 2047. This is needed to support the net-zero target for 2070 and to replace coal and gas-based plants that will be phased out.
The government says these goals require large private investment and faster timelines. Prime Minister Narendra Modi had said in November 2025 that the nuclear sector would be opened to private players. He said this reform will strengthen India’s energy security and technological capability.
India is already a nuclear-weapon state and tested nuclear bombs in 1998.
The Bill creates a modern legal framework to replace the Atomic Energy Act of 1962. It allows private companies to work in the exploration of atomic minerals, fuel fabrication, equipment manufacturing, and possibly some plant operations. It strengthens regulation through a new independent nuclear safety authority. It also changes the Civil Liability for Nuclear Damage Act. It clarifies the roles of operators and suppliers. It adds insurance-backed caps and government guarantees. These steps are considered essential to bring in private and foreign investment.
Finance Minister Nirmala Sitharaman had announced a Nuclear Energy Mission for Viksit Bharat in her Budget speech. She said 100 gigawatts of nuclear energy by 2047 is essential for the energy transition. She said amendments to the Atomic Energy Act and the Civil Liability Act are needed to bring in private partners.
She also announced a 20000 crore fund for Small Modular Reactors. The goal is to have at least five Indian designed SMRs working by 2033. These reactors can support industries and help balance the power grid.
NPCIL plans to produce about half of the 100 gigawatt target, while private and imported reactors will supply the rest. NPCIL chief Bhuwan Chandra Pathak said that the company will commission at least one reactor every year. The expansion will face challenges because nuclear projects need strict safety checks, steady public communication, and secure supplies of fuel. Clear liability rules and strong regulators will also be important.
Supporters say the SHANTI Bill will strengthen energy security, cut carbon emissions, and create a new market for engineering and technology companies. If Parliament passes the Bill, India will enter a new phase where public oversight and private investment work together to expand clean and reliable nuclear power.