Union Cabinet approves Atomic Energy Act 2025 allowing private companies to enter the India’s Nuclear Power Sector

The Union Cabinet led by PM Modi has approved changes to the Atomic Energy Bill, clearing the way for private companies to take part in India’s nuclear power sector. 

The move, known as the SHANTI Bill, ends decades of full government control over nuclear energy. 

Officials say the change is meant to increase power capacity, bring in private funding, and support clean energy goals, while keeping safety and security under strict government oversight.

Cabinet Approves SHANTI Bill Allowing Private Companies to Enter India’s Nuclear Sector

The approved SHANTI Bill amends the Atomic Energy Act to allow private firms to participate in civil nuclear power projects. Until now, nuclear power generation and related activities were limited to government-owned bodies such as the Nuclear Power Corporation of India Limited.

Under the revised law, private companies can invest in and operate nuclear power plants in partnership with public sector agencies. The bill also allows limited foreign investment, which could help bring in funds and technical support for large nuclear projects.

The bill also changes nuclear liability rules. Earlier laws placed heavy financial responsibility on suppliers, which kept many companies away from the sector. The new framework introduces clearer limits and insurance systems so that companies understand their risks before entering projects.

Reacting to the Cabinet decision, the Prime Minister’s Office said in a post on X,“Private participation in nuclear power will strengthen India’s energy security and support clean electricity needs.” 

Also Read: IIT Alumnus-led deep-tech startup 'Tvasta' signs MoU with CEPT University to set up National Hub for 3D construction tech

Why the Government Wants Private Companies in Nuclear Energy

The government says nuclear power is important to meet growing electricity demand without increasing carbon emissions. Unlike solar and wind energy, nuclear power provides steady electricity throughout the day, making it useful for base power needs.

By allowing private companies into the sector, officials expect faster project execution and better access to funding. The move may also support the use of smaller nuclear reactors, which can be built faster and require less space.

The government has clearly stated that safety, waste handling, and security will remain under government supervision. All nuclear material and plant operations will continue to be monitored by national regulators.

The amended Atomic Energy Bill will now be placed before Parliament for discussion. If passed, it will change how nuclear power projects are planned and funded in India, with public and private companies working together under one legal system.

Also Read: "All parents should have it in their DNA to make children at age 3 get up, brush teeth, have breakfast and go to school,” says Sudha Murthy