“`html

Nuclear Energy Transformation in India: The SHANTI Bill

Nuclear energy stands as a pivotal force for India’s future. Homi J. Bhabha’s insight, shared in a letter to the Sir Dorabji Tata Trust in March 1944, highlights a vision for a self-sufficient nation. The statement reflects his belief that in the future, India would not need to rely on foreign experts, but rather nurture its own.

A Historic Move Towards Private Participation

Before India gained independence, Bhabha envisioned a robust nuclear framework for the country. Now, after eight decades, India has made a significant leap by welcoming private sector involvement in civil nuclear energy. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, which received approval from both Houses of Parliament and the President’s office in December 2025, replaces the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010.

This legislative change, allowing private Indian firms to construct, own, manage, and dismantle nuclear power plants, is a monumental shift. The Atomic Energy Regulatory Board now enjoys statutory independence, and liability regulations have been realigned to comply partially with international standards.

The response from industry has been overwhelmingly positive. Holtec International has announced intentions to deploy around 200 small modular reactors in India via its subsidiary. Meanwhile, the Adani Group is considering nuclear facilities to support its artificial intelligence (AI) data centre ambitions, and firms like Tata Consulting Engineers and Larsen & Toubro are strategizing for a global nuclear manufacturing corridor. However, enthusiasm must be matched with a viable strategy, as passing legislation is only the beginning of revitalising the sector.

Understanding the Urgency for Nuclear Energy

Currently, India operates 25 nuclear reactors, generating approximately 8.88 GW, accounting for just 3% of its overall electricity production. The government’s objective of achieving 100 GW of nuclear capacity by 2047 necessitates a staggering tenfold increase, which is estimated to require ₹19 Lakh Cr ($214 billion) in total investment.

The Nuclear Power Corporation of India Limited (NPCIL) struggles with its primary responsibilities while relying on government funding. Its interest costs on debts often surpass the price of reactor components, and the strategy of constructing a few reactors without standard designs has prevented suppliers from leveraging economies of scale.

The track record for execution is concerning. India’s public sector undertakings have consistently failed to meet major nuclear capacity goals. For instance, the Prototype Fast Breeder Reactor at Kalpakkam, intended for launch in 2010, has not yet achieved critical status. Out of ten planned 700 MW pressurised heavy water reactors designed for “fleet mode,” only four are expected to function by 2030. Additionally, escalating costs at Kudankulam have driven project expenses from ₹13,171 Cr to over ₹22,000 Cr. Similarly, negotiations for the Jaitapur project with France’s EDF have extended beyond fifteen years without any physical progress. Inviting private investment and operational capacity is essential, making the Bill a timely and necessary step.

Addressing the Serious Research and Development Gap

The broader challenge pertains not only to who constructs India’s reactors but also to what innovations are made within them. India’s nuclear research and development (R&D) landscape has remained unusually closed and centralised for the past sixty years. Exploration, innovation, and technological advancements have largely occurred within government-controlled facilities under the Department of Atomic Energy, effectively excluding private companies, startups, and academic institutions from significant nuclear research.

This leads to a paradox known to Indian industrial historians: a nation blessed with exceptional scientific ability and operational experience, yet lagging behind global leaders in key nuclear technologies that shape the industry’s future. Take, for example, small modular reactors (SMRs), seen as a promising avenue for accelerating nuclear growth. Countries like the United States, Canada, the UK, and China are well ahead, with multiple designs in advanced testing or early deployment stages, whereas India lacks any similar initiative in the private sector.

The government has launched a Nuclear Energy Mission with a ₹20,000 Cr budget aimed at developing at least five native SMR designs by 2033, but the track records of public sector undertakings do not inspire much confidence in meeting this timeline. When it comes to light water reactor technologies, which dominate globally, India’s knowledge remains reliant on imports and is operationally limited. In advanced reactor technologies, including molten salt and high-temperature gas systems, India’s work is often confined to long-term, government-led projects with limited external validation.

In terms of experimental infrastructure, India does not possess a modern and accessible ecosystem for nuclear R&D akin to those in the US, France, or China. These issues are central to India’s future as a potential technology leader versus becoming a market reliant on foreign innovations. The risk is that by the time India’s SMR initiatives yield results, the domestic market may already be dependent on external solutions, leading to challenges in fuel supply and intellectual property rights.

The Need for an Urgent Technological Advancement

Moreover, India’s energy planners face an overwhelming surge in demand induced by rapid urbanisation and the rise of AI alongside other factors. The nation’s accelerated aim to reach a $10 trillion GDP is already evident, with urban growth and advanced manufacturing contributing to unprecedented energy requirements.

According to Nomura, India’s data centre capacity is projected to soar from 960 MW to 9.2 GW by 2030, representing a ninefold increase. The International Energy Agency (IEA) forecasts that global energy requirements from data centres will more than double by 2030. AI-enhanced servers consume significantly more energy than standard servers, making nuclear energy vital for India’s ambitions. As highlighted by the Prime Minister during the advocacy for the SHANTI Bill, nuclear energy will play an essential role in powering AI and promoting green manufacturing efforts.

Solar and wind energy alone cannot address this escalating demand. Their intermittency poses challenges, while energy storage systems tend to be costly at a large scale. Nuclear energy, with its continuous baseload production capability and minimal carbon emissions, emerges as a crucial solution. Globally, major tech firms are already contracting for nuclear-powered data centres. If India fails to build its own expertise, it will need to import it, leading to further dependencies that could jeopardise its digital economy.

Learning from ISRO’s R&D Expansion

India’s overarching R&D framework significantly underscores the systemic nature of this issue. The nation allocates around 0.65% of its GDP towards research and development, a stark contrast to the global average of 1.79%. This investment pales compared to countries like China (2.68%), the United States (3.6%), and South Korea (5.2%). In the realm of nuclear energy, this undervaluation is worsened by legal restrictions. Essential institutions, motivation structures, and talent channels necessary for advanced nuclear research are largely absent beyond government control.

One robust example to consider is the space industry. Following ISRO’s initiative to open the space sector to private participants, the number of space-based startups surged from nearly non-existent to around 300, showcasing the potential benefits of collaboration and open innovation.

“`

India’s Nuclear Revolution: Urgent R&D Actions Required

India’s nuclear revolution is on the verge of significant growth, backed by increasing corporate involvement and a clear global interest. The nation’s space economy is anticipated to reach over $40 billion by 2033. ISRO’s collaboration with the private sector is a noteworthy demonstration of technological prowess, cost-effectiveness, and collective talent yielding top-tier quality. However, the nuclear sector has even greater commercial prospects and far-reaching strategic importance. It is crucial to initiate what can be referred to as the ISRO for nuclear technology in India.

The example of space exploration serves as a cautionary tale. ISRO’s longstanding collaborative efforts with industry and universities have laid the groundwork for private innovation. Unfortunately, the nuclear sector lacks a similar history. Establishing this foundation demands prompt and purposeful policy changes rather than mere legislative approval.

What Must Change Now

To advance, four critical interventions are necessary. Firstly, funding for nuclear research and development via the new National Nuclear Energy Mission (NNEM) must be made accessible to private enterprises through competitive milestones. This should encompass Small Modular Reactors (SMRs), advanced reactors, nuclear materials, and digital safety systems.

Secondly, India requires a national test infrastructure that includes adaptable test reactors, simulation centres, and materials testing facilities. These resources should be available to academic institutions and start-ups, rather than being confined to Department of Atomic Energy (DAE) premises.

Thirdly, prominent institutions such as IITs, IISc, and research-focused universities should be integrated into nuclear R&D as vital engines of innovation. This can be achieved through funded research positions, industry-sponsored laboratories, and doctoral initiatives aligned with NNEM goals.

Lastly, Public Sector Undertakings (PSUs) should be mandated to co-invest in private nuclear research and development, reflecting successful models from the US and China where government support enhances rather than replaces private innovation.

Concerns regarding the SHANTI Bill, especially the elimination of supplier liability, warrant significant regulatory scrutiny as its implementation advances. However, the more significant risk lies in the possibility that the Bill may not be comprehensive enough.

Allowing private investment in deployment while keeping R&D confined to government facilities could lead to an unusual situation: India might transform into one of the globe’s largest nuclear markets but remain a peripheral player in nuclear innovation.

From Control to Capability Diffusion

Nuclear energy stands as a crucial technological domain, interconnected with geopolitics, defence, climate diplomacy, sustainable progress, and industrial competitiveness. Nations at the forefront of nuclear R&D are the ones setting global standards, supply chains, and exerting geopolitical clout. China’s ambitions are apparent and generously financed, while the United States capitalises on private contractors, national laboratories, and university partnerships to retain its leading position. France considers its nuclear assets a cornerstone of national sovereignty. With its vast population and scientific expertise, India is well positioned to join this elite circle.

Bhabha’s vision articulated in 1944 extended beyond reactor construction; it aimed for the establishment of indigenous capabilities, ensuring that India would not have to rely on foreign resources for its fundamental needs. The SHANTI Bill is an essential step toward fulfilling that vision, although it is not sufficient.

The subsequent phase, although more challenging and less glamorous, is to broaden India’s nuclear R&D landscape with the same audacity that Parliament has applied to opening up the nuclear marketplace.

The nation that successfully developed a nuclear programme under global constraints undoubtedly possesses the confidence to trust its private sector and emerging scientists with navigating the most intricate energy transformation in its history. The consequences of hesitation could span generations.

The post India’s Nuclear Revolution: Urgent R&D Actions Required appeared first on StartupSuperb Media.