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The SHANTI Bill - Opening the Sector to Private Players

ICICIdirect Research 19 Dec 2025 DISCLAIMER
  • The proposed SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Bill, 2025 is the key reform aimed at achieving the 100 GW target. The Bill plans to amend the Atomic Energy Act of 1962, which currently gives the government complete control over nuclear power.
  • Once implemented, the Bill will allow private and foreign companies to participate in nuclear generation, fuel fabrication, storage, and import/export of equipment.
  • Foreign Direct Investment (FDI): The bill allows up to 49% FDI in specific nuclear activities to attract global technology and capital.
  • The Bill introduces graded liability limits for nuclear operators capped at ~₹3,000 crore (300 million Special Drawing Rights) aligning with international standards for reactors above 3,600 MW thermal capacity and simplifies supplier liability by making it contract-based rather than open-ended.
  • Nuclear Liability Fund: If the total cost of damage exceeds the operator’s liability cap, the government can cover the excess via a Nuclear Liability Fund.
  • Together, these steps are meant to reduce risks for investors and help attract the capital needed for India’s nuclear expansion.

 Key Challenges and Way Ahead: Despite the reforms, scaling nuclear power remains challenging due to long project timelines (7–10 years), high upfront costs (~₹20 crore per MW), and import dependence for ~70% of uranium needs even at the current ~8.8 GW capacity.

 There is also a need to address gaps in insurance coverage, fuel security, and manpower, including expansion of the ₹1,500 crore nuclear insurance pool and accelerated development of advanced nuclear fuels such as Advanced Nuclear Energy for Enriched Life (ANEEL) along with fast breeder reactors to reduce reliance on imported uranium, thereby enabling private participation and supporting long-term capacity growth.

 We believe among the listed entities, L&T, BHEL, NTPC, Tata Power, Kilburn Engineering and KSB Ltd. etc, are likely to be the primary beneficiaries of the nuclear energy push, given their strong positioning in reactor equipment, turbine-generator systems, specialised process equipment and nuclear-grade pump manufacturing.

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