India Opens Nuclear Sector to Private and Foreign Players

India has opened its nuclear energy sector to private Indian firms and foreign partners through the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. The law repealed the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, and it permits private companies to build, own and operate nuclear facilities through a regulated approval system.

SHANTI Act and Regulatory Framework

The Department of Atomic Energy issued draft rules under the SHANTI Act on 14 August 2026. The draft framework allows private players to obtain in-principle approval for site preparation, land acquisition and vendor selection before a formal licence is granted.

The proposed rules also permit the import and use of foreign reactor technologies with proven overseas operational records. Regulators can stop project progress at critical stages if safety conditions are not met.

Nuclear Energy Mission and Capacity Targets

On 12 August 2026, the Union government stated in the Lok Sabha that India is pursuing a two-pronged nuclear expansion strategy under the Nuclear Energy Mission. The target is 100 GWe of nuclear capacity by 2047.

The strategy includes indigenous 700 MWe reactors and five Small Modular Reactors by 2033. Small Modular Reactors are compact nuclear reactors designed for smaller output and modular deployment.

Private Sector Entry and Foreign Investment

Private sector participation became visible on 2 May 2026, when Adani Power incorporated two nuclear-dedicated subsidiaries, Rawatbhata-Raj Atomic Energy Ltd and Coastal-Maha Atomic Energy Ltd. These entities were created for potential nuclear projects in Rajasthan and Maharashtra.

The SHANTI Act permits up to 49% foreign direct investment through joint ventures. The law also creates a framework for private ownership and operation of nuclear plants under state supervision.

Important Facts for Exams

• The Atomic Energy Act, 1962 had kept India’s nuclear sector under state control for about six decades.
• The Civil Liability for Nuclear Damage Act, 2010 deals with liability in case of a nuclear accident.
• Small Modular Reactors are a category of nuclear reactors with lower capacity than large conventional reactors.
• The Lok Sabha is the lower house of the Indian Parliament.

Judicial and Policy Context

On 27 February 2026, the Supreme Court of India heard a petition challenging the liability caps and transparency provisions linked to the SHANTI Act. The matter was argued by advocate Prashant Bhushan on behalf of former civil servant E.A.S. Sarma.

President Droupadi Murmu signed the SHANTI Bill into law on 20 December 2025. The legislation is formally titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025.