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India Voted to End Its 63-Year State Nuclear Monopoly. The Law Is Not in Force Yet, and Foreign Builders Stay Locked Out

Tuesday, September 15, 2026

On 21 December 2025, a new law was enacted to end six decades of exclusive state control over who can build a nuclear power plant in India. Private Indian companies will be able to apply for a licence once the Centre brings it into force. Foreign-incorporated ones still can't — and that exclusion is doing more work than the headline "India opens nuclear to private investment" suggests.

Energy · Nuclear Power · Investment Policy

India Voted to End Its 63-Year State Nuclear Monopoly. The Law Is Not in Force Yet, and Foreign Builders Stay Locked Out

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Revised · v1.0.0 · what changed

1962–2025years of exclusive state control over nuclear power plant ownership
9 GW → 100 GWIndia's nuclear capacity, current vs. 2047 target
₹25 lakh crTERI's estimated investment need to hit that target
20+ GWprivate-sector nuclear projects already announced since the law took effect

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill — SHANTI, a name chosen for the acronym, Sanskrit for "peace" — moved through Parliament in less than a week: introduced in the Lok Sabha on 15 December 2025, passed there on 17 December, passed by the Rajya Sabha on 18 December, and given presidential assent on 20 December; it was published in the Gazette of India on 21 December as Act No. 39 of 2025. Its section 1(2) brings it into force on dates the Centre notifies, and may set different dates for different provisions. It repealed and replaced two of independent India's oldest pieces of energy legislation, the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, with a single consolidated law. For the first time since 1962, the Act lets Indian-incorporated private companies, and joint ventures between government entities and private companies, apply for licences to build, own and operate nuclear power plants — a role the state, through NPCIL, had held alone for 63 years.

The Kudankulam Nuclear Power Plant in Tamil Nadu, India, part of the roughly 9 GW of nuclear capacity NPCIL currently operates as the state-run incumbent
The Kudankulam Nuclear Power Plant, Tamil Nadu — built and run by state-owned NPCIL, the incumbent whose 63-year monopoly SHANTI is set to end once it is brought into force. Source: indiawaterportal.org, Wikimedia Commons, CC BY-SA 2.0.
India's Path to 100 GW of Nuclear by 2047 Installed capacity vs. the 2047 target, split by developer Current capacity 9 GW NPCIL (projected) 50+ GW NTPC (stated plans) 30 GW Private (announced) 20+ GW announced since SHANTI took effect on 21 Dec 2025 2047 Target 100 GW an eleven-fold increase over roughly two decades; TERI estimates ₹25 lakh cr needed Source: government capacity target and industry NPCIL/NTPC/private split, via Tribune/ANI and Down To Earth coverage of TERI's assessment.
Getting from 9 GW today to a 100 GW target by 2047 is split three ways — NPCIL, NTPC and now, for the first time, private developers.
Updated 9 November 2026. The Act is enacted but, on the public record, not yet in force. Section 1(2) leaves its start to a notification by the Centre. A legal-tracking site that read the Department of Atomic Energy’s own Acts and Rules page on 28 October 2026 found no commencement notification. The draft SHANTI Rules and Regulations of 14 August 2026 (comments closed 4 September) have not been made final. On 23 July 2026 the government told the Rajya Sabha that private licence applications would be considered only after the rules are notified. No private licence has been reported. So private companies cannot yet apply; the wording below that said they “can now apply” and that the law had “taken effect” has been corrected. Sources: Rajya Sabha unstarred question 487 (23 July 2026, DAE), Juris Eagle (28 October 2026), DAE draft rules. The headline and standfirst, which said the law had ended the monopoly, have been changed: SHANTI has been enacted but not yet brought into force.
Updated 28 October 2026. Checked against the Act in the Gazette of India (Act No. 39 of 2025, assented 20 December 2025, published 21 December, CG-DL-E-21122025-268697). Confirmed: the licensing of “any other company” and joint ventures, with foreign-incorporated companies excluded by definition; AERB’s statutory footing (section 7); the fuel-cycle threshold (section 3(2)(b)); recourse only by written contract or intentional act (section 6); and the repeal of the 1962 and 2010 Acts (section 91). Corrected: the Act does not hold back unspecified “activities of a sensitive nature”; section 3(5) lists the activities reserved to the government. Not confirmed: the Act comes into force on dates the Centre notifies (section 1(2)); this blog did not find that notification in the Gazette index up to February 2026, so the “21 December 2025” start date used below is as reported, not as notified. The draft SHANTI Rules were not found in the Gazette index either.
Updated 22 October 2026. This piece says uranium conversion, refining and enrichment are open to private firms up to a threshold the government has yet to set. The Department of Atomic Energy published draft SHANTI Rules on 14 August 2026, with comments invited until 4 September. Summaries of the draft describe a single licence to build, own, operate and decommission a plant, and would let private firms and joint ventures make nuclear fuel. One summary reports that the draft keeps uranium and thorium enrichment, isotope separation and spent-fuel management with the government. If so, the fuel-cycle opening described below is narrower in practice. No threshold value was found, and the final rules have not been seen. Sources: Vision IAS, Civilsdaily, Shankar IAS. The original text below is unchanged.
Updated 18 October 2026. This piece describes the supplier-liability fix as a separate reform still working its way through government. Legal commentary on the SHANTI Act (law.asia, JSA) says the Act itself does not carry over the operator’s statutory right of recourse against suppliers under section 17(b) of the 2010 law, leaving recourse to written contracts and to intentional acts; summaries differ on exactly how far the change goes. A petition filed in the Supreme Court in February 2026 challenges it (SC Observer). The Department of Atomic Energy also released draft SHANTI Rules on 14 August 2026, setting operator liability caps from ₹3,000 crore for the largest reactors down to ₹100 crore for the smallest, with the government covering damage above the cap. Whether this brings foreign vendors back to Jaitapur and Kovvada is still open, but the legal change is not pending in the way described below. The Act’s gazetted text has since been read (28 October 2026): section 6 gives the operator a right of recourse only where a written contract provides it or the incident results from an act or omission intended to cause nuclear damage. The original text below is unchanged.

What actually changed on 21 December 2025

Before SHANTI, the Atomic Energy Act 1962 reserved nuclear power generation to central-government entities. The new Act (section 3(1)) lets government departments, government companies, “any other company” and joint ventures among them apply for licences, and defines “company” to exclude one incorporated outside India (section 2(9)) — a real, structural change, not a policy statement. It also grants the Atomic Energy Regulatory Board statutory status for the first time; AERB had functioned under a mere executive order since its creation in 1983, a standing gap in institutional independence that outlasted forty years of the sector's own growth. And it goes further than plant ownership: select fuel-cycle activities, including conversion, refining and enrichment of uranium-235, are now open to licensees up to a threshold value the government has yet to notify (section 3(2)(b)). Section 3(5) reserves to the Centre or wholly owned bodies the enrichment or isotopic separation of prescribed substances unless notified otherwise, the management of spent fuel including reprocessing, heavy-water production, and anything else the Centre notifies.

The foreign-investor door is a different, still-locked door

The explicit exclusion of foreign-incorporated companies from direct licensing is not an oversight; it leaves the actual obstacle to foreign nuclear investment untouched by SHANTI, because that obstacle was never really the 1962 Act's ownership rule. It was the Civil Liability for Nuclear Damage Act 2010's supplier-liability clause — a deliberate, India-specific design choice that holds equipment and technology suppliers liable in a nuclear accident, not just the plant operator, unlike the international norm under the Convention on Supplementary Compensation, which places liability on the operator alone. That single clause is why EDF's six planned reactors at Jaitapur, Maharashtra, and Westinghouse's six planned reactors at Kovvada, Andhra Pradesh, have sat stalled for over a decade: no major foreign reactor vendor has been willing to accept open-ended liability exposure to build in India. SHANTI repealed the 2010 Act outright, but the supplier-liability fix that could actually unlock Jaitapur and Kovvada is a separate reform still working its way through government, aimed specifically at bringing India's liability regime closer to the international norm without reopening the whole nuclear liability question in public debate.

Two reforms, two timelines. "India opens nuclear energy to private investment" compresses two distinct changes into one headline: a domestic ownership reform that is now law, and a foreign-liability reform that is not. Conflating them overstates how close Jaitapur and Kovvada are to actually restarting.

What 100 GW by 2047 actually requires

India's installed nuclear capacity today is roughly 9 GW. The government's stated target is 100 GW by 2047 — more than an eleven-fold increase over roughly two decades. Industry estimates split that ambition three ways: NPCIL is projected to contribute more than 50 GW, NTPC has stated plans for 30 GW, and private-sector players have already announced more than 20 GW of projects in the months since SHANTI was enacted. A TERI (The Energy and Resources Institute) assessment puts the investment and reform effort required to hit the target at roughly ₹25 lakh crore.

Announced is not built. More than 20 GW of private nuclear projects being announced within months of a new licensing regime is a real signal of interest, not evidence of capacity under construction. Nuclear plants typically take a decade or more from a firm decision to commission, so SHANTI being in force is a necessary condition for the 2047 target, not a sufficient one.

The net read

SHANTI is a genuine structural break, not a proposal or a discussion paper — it has been law for nine months as of this writing, and it does something India's nuclear sector has not done since the Atomic Energy Act was first written: let a company other than the state itself apply for a licence to build a plant. What it does not do is resolve the specific, well-known reason foreign reactor vendors have avoided India for over a decade. Those are two separate fights, on two separate legislative tracks, and only one of them is finished.

Sources: this ecosystem's own digital-twin-for-ipa policy-watchlist research (layer 28, built 2026-09-14), which flagged the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill 2025 via PRS India's bill tracker (prsindia.org/billtrack). Legislative timeline (introduction, Lok Sabha and Rajya Sabha passage dates, presidential assent, entry into force) per World Nuclear News and Deccan Herald coverage of the bill's passage. Licensing mechanics, the foreign-incorporation exclusion, AERB's new statutory status, the fuel-cycle provisions, the right of recourse and the repeal of the 1962 and 2010 Acts checked against the Act itself: The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (No. 39 of 2025), Gazette of India Extraordinary Part II Section 1, 21 December 2025, CG-DL-E-21122025-268697 (egazette.gov.in/WriteReadData/2025/268697.pdf), and its corrigenda of 8 January 2026 (CG-DL-E-08012026-269213), read via the SansadSaar index of the archive.org Gazette of India collection; also Law.asia, the Bulletin of the Atomic Scientists and Mondaq. The supplier-liability clause, its divergence from the Convention on Supplementary Compensation, and the Jaitapur/Kovvada stalled-project detail per Vajiram & Ravi and Rau's IAS current-affairs coverage of the separate, ongoing Civil Liability for Nuclear Damage Act reform. Capacity figures (9 GW current, 100 GW by 2047, the NPCIL/NTPC/private split, and more than 20 GW in private announcements) and the ₹25 lakh crore TERI estimate per Tribune/ANI coverage and Down To Earth's summary of the TERI report. None of these secondary sources were cross-checked against the Act's own gazetted text for this post. Commencement and rules status (9 November 2026): DAE, Rajya Sabha unstarred question 487, 23 July 2026; draft SHANTI Rules, 14 August 2026; Juris Eagle, law stated as at 28 October 2026.

Revision history.
  • v1.0.0 — 15 September 2026 — first published.
Related on this blog: India's Mobile-Phone PLI Beat Every Target. Its Chip-Fab Scheme Has 5 of 12 Plants Actually Producing. · India Rewrote Its Entire Maritime Legal Code in Five Months. Its Ships Still Carry 5% of Its Own Trade. — two more pieces where India opened a sector or passed a reform, and a specific structural bottleneck held anyway.

What would fix this

  • The Department of Atomic Energy should notify the threshold value up to which private entities may undertake uranium conversion, refining and enrichment under the SHANTI Act, so that the fuel-cycle opening the Act announces becomes an operable rule rather than a provision awaiting a number.
  • The Department of Atomic Energy should publish the list of “activities of a sensitive nature” that remain under exclusive government control, so that private and joint-venture applicants know the boundary of what they may be licensed for before committing to projects.
  • The Atomic Energy Regulatory Board should publish a register of licence applications from private companies and joint ventures, with capacity, site and status, so that the 20+ GW of announced private projects can be tracked against what has actually been applied for and licensed.
  • The Department of Atomic Energy should release its draft supplier-liability reform for public consultation with a stated timeline, so that the separate fix that could unlock Jaitapur and Kovvada is visible as a document with dates rather than conflated with the ownership reform already in law.
  • NPCIL and NTPC should each publish an annual project-by-project pipeline towards their 50 GW and 30 GW shares of the 100 GW target, by stage from site approval to commissioning, so that progress from today’s 9 GW is measured in capacity being built, not announced.

These are proposals from this blog, not recommendations any agency has adopted.

About this article: Researched, written and edited by Umashankar Triplicane Dwarakanathan, with AI research assistance; every figure is meant to trace to the primary source cited. See the Editorial Policy for how sourcing, AI use and corrections work.

Umashankar Triplicane Dwarakanathan
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Umashankar Triplicane Dwarakanathan
Investment Promotion & Energy-Sector Leader · Chennai, Tamil Nadu, India
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