In a significant development for India's energy security and international partnerships, the United States government has officially welcomed the enactment of India's new nuclear energy legislation. The move signals a major step forward in bilateral cooperation and opens the country's civil nuclear sector to unprecedented private participation.
US Endorsement and the Path to Partnership
On Monday, President Droupadi Murmu granted her assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, formally enacting it into law. Within hours, the US Embassy in India publicly expressed its support. In a social media post, the embassy stated, "We welcome India’s new SHANTI Bill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation." The post further emphasized that "The United States stands ready to undertake joint innovation and R&D in the energy sector." This endorsement underscores the growing strategic energy alignment between Washington and New Delhi.
What the SHANTI Bill Changes for India's Nuclear Sector
The newly enacted law represents a complete overhaul of India's atomic energy legal framework. It repeals the aging Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, consolidating all related laws under one modern statute. The most transformative aspect is the opening of the civil nuclear sector to private enterprises, a space long dominated by government entities like the Nuclear Power Corporation of India (NPCIL).
Under the new legal structure, private companies can now participate in a wide range of activities, including:
- Fuel cycle activities
- Equipment manufacturing
- Nuclear power generation
- Operation of nuclear power plants
All such participation will remain under the strict regulatory oversight of the Atomic Energy Regulatory Board. Crucially, the law permits up to 49% foreign direct investment (FDI) in certain nuclear sector activities. This provision is expected to attract vital capital, accelerate research and development, and fast-track the adoption of new technologies.
Driving India's Clean Energy Ambitions
The enactment of the SHANTI Bill follows Finance Minister Nirmala Sitharaman's announcement in her February Union Budget speech, where she revealed plans to open the nuclear sector to private investment. The government views this legislation as a cornerstone for achieving its ambitious clean energy and capacity goals.
Currently, India's nuclear energy capacity is 8.78 gigawatts. With indigenous reactors under development through international cooperation, this is projected to rise to over 22 gigawatts by 2031-32. The ultimate long-term target is even more ambitious: achieving 100 gigawatts of nuclear capacity by 2047. The SHANTI Bill, by enabling private and foreign investment and collaboration, is designed to be the catalyst that propels India towards this target, ensuring a significant contribution to the nation's clean energy transition.
The bill marks the beginning of a new chapter, transforming India's nuclear energy landscape from a state-controlled endeavor into a collaborative, investment-friendly domain with strong international backing, particularly from the United States.
