# Is India Finally Opening Its Nuclear Sector to Private Investment?

India's Department of Atomic Energy published the draft rules and regulations under the SHANTI Act on 14 August, opening a public comment window that closes on 4 September — a 21-day window that will shape the most significant restructuring of India's nuclear legal framework in more than six decades.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, completed the legislative process in December 2025. It repeals both the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 — the two statutes that had, in practice, kept private capital entirely out of India's nuclear sector. The stated national objective underpinning the legislation is reaching 100 GWe of nuclear capacity by 2047. Minister of State Jitendra Singh told the Lok Sabha on 12 August that the Act "will enable a wider participation of both public and private sectors in India's nuclear energy industry."

For reactor vendors — domestic and foreign — the draft rules introduce a single composite licence covering construction, ownership, operation, and decommissioning. That streamlined pathway, combined with explicit recognition of fusion reactors alongside fission, signals that India is designing a framework intended to last decades, not just accommodate the current technology generation.

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## What the Draft Rules Actually Say

The draft framework establishes several distinct licensing categories beyond power reactors: fuel cycle facilities; uranium and thorium exploration, mining, and processing; manufacture of radiation sources; and foreign and domestic trade and transportation of nuclear fuel, equipment, technology, and radioactive substances. That breadth suggests India is attempting to regulate the full nuclear supply chain under a single modernised architecture rather than patching the existing patchwork.

A notable structural change is the statutory recognition granted to the Atomic Energy Regulatory Board (AERB). Previously operating without a dedicated legislative mandate, AERB now gains formal standing as India's nuclear regulator — a prerequisite for any credible licensing regime that private investors or foreign technology vendors will take seriously.

The draft also introduces an in-principle approval mechanism for projects where a site or technology has not yet been selected. That provision is commercially significant: it allows prospective developers to enter negotiations with reactor technology vendors and begin land acquisition before a full licence is in hand, compressing the pre-development timeline.

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## The Foreign Reactor Clause: A Meaningful Filter

The rules impose a specific condition on foreign-designed reactors. A licence will only be granted for designs that have already been certified or approved by the regulatory body in the country of origin — with "country of origin" defined as nations that are self-reliant in nuclear reactor design and supply chain and whose regulatory approvals are "trusted globally." The design must also be operational either in its country of origin or in another foreign country.

Read plainly, this clause narrows the eligible vendor pool to proven designs from established nuclear states. First-of-a-kind designs with no operating reference plant — regardless of how advanced their safety case — would not qualify under this framework. That cuts both ways: it protects India from becoming a proving ground for unproven technology, but it also excludes a broad range of advanced SMR concepts currently in licensing processes in the US, UK, and Canada that have not yet achieved commercial operation.

For vendors like [Westinghouse Electric Company](https://smrintel.com/companies/westinghouse) or [Korea Hydro & Nuclear Power](https://smrintel.com/companies/khnp), whose designs have demonstrated operating history, this clause is a competitive advantage. For developers of genuinely novel reactor concepts, it is effectively a market exclusion — at least until a reference plant somewhere else reaches operation.

The rules also include a catch-all national interest and safety condition: imported or domestically acquired technology must not adversely affect India's national interest, must not constitute an unreasonable risk to public health and safety, and must conform with national policies under the Act.

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## Why This Matters Beyond India

India's 100 GWe target by 2047 is one of the largest single national nuclear build commitments anywhere in the world. To put that in perspective, the country's current installed nuclear capacity is a fraction of that figure. Achieving the 2047 goal requires not just regulatory modernisation but a sustained, decades-long construction programme at a scale India has never previously attempted.

The SHANTI framework is the necessary legal precondition for that programme — but it is far from sufficient. The quality of the implementing rules, the operational independence of AERB, the actual scope of private participation permitted, and whether foreign liability arrangements can be structured attractively enough to draw in international vendors are all questions the consultation process will begin to surface.

The 4 September deadline gives industry stakeholders, domestic companies, foreign vendors, and civil society organisations just over two weeks to engage. That is a short window for feedback on rules governing a sector with 60-year asset lifetimes. Whether the Department of Atomic Energy incorporates substantive feedback or treats the consultation as a procedural formality will be an early signal of how seriously India intends to operate the new framework.

For the global SMR and advanced nuclear industry, India's trajectory matters: a credibly open Indian nuclear market would be among the largest procurement opportunities of the coming generation.

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## Key Takeaways

- India's Department of Atomic Energy released SHANTI Act draft rules on 14 August; public comment closes 4 September 2026.
- The SHANTI Bill completed the legislative process in December 2025, repealing both the 1962 Atomic Energy Act and the 2010 Civil Liability for Nuclear Damage Act.
- India's stated target is 100 GWe of nuclear capacity by 2047.
- The draft introduces a single composite licence covering construction, ownership, operation, and decommissioning of nuclear power reactors, including fusion.
- Foreign reactor designs must be certified by their home regulator and have at least one operational reference plant — a provision that effectively excludes first-of-a-kind advanced reactor concepts.
- AERB receives statutory recognition as the independent nuclear regulator for the first time.
- An in-principle approval mechanism allows developers to negotiate with vendors and acquire land before a full licence is granted.

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## Frequently Asked Questions

**What is the SHANTI Bill and when did it pass?**
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, completed the Indian legislative process in December 2025. It consolidates and replaces the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, creating a modernised legal framework that permits limited private sector participation in India's nuclear industry under regulatory oversight.

**What is India's nuclear capacity target under the SHANTI Act?**
The legislation supports India's long-term objective of achieving 100 GWe of nuclear capacity by 2047, according to the source text. This represents a multi-decade build programme of a scale India has not previously undertaken.

**Can foreign reactor vendors participate in India's nuclear sector under the new rules?**
Yes, but with conditions. Foreign-designed reactors must have been certified or approved by the regulator in their country of origin, and that country must be self-reliant in nuclear reactor design and supply chain. Crucially, the design must already be operational — either in its country of origin or in another foreign country. This requirement excludes designs that are still in licensing or pre-construction phases with no operating reference plant.

**What is the AERB and why does its statutory recognition matter?**
The Atomic Energy Regulatory Board (AERB) is India's nuclear regulator. Under the SHANTI Act, it receives statutory recognition for the first time — meaning its authority is grounded in dedicated legislation rather than administrative orders. This is considered a prerequisite for a credible, independently-operating regulatory body that private investors and foreign vendors can rely on.

**What is the deadline for submitting feedback on the SHANTI draft rules?**
Interested persons and organisations have until 4 September 2026 to submit suggestions and feedback on the documents published by the Department of Atomic Energy on 14 August 2026.