India’s Nuclear Sector Opens for Private Investment Under New SHANTI Act

India has enacted a landmark law opening its nuclear energy sector to private companies. The SHANTI Act received presidential assent, fundamentally reforming the country’s atomic energy framework. This move unlocks significant new investment and technological partnerships.

The United States swiftly welcomed the legislative change. Washington expressed readiness for joint research and development, signaling a new phase in bilateral energy cooperation. The law aims to accelerate India’s clean energy transition and boost its nuclear capacity.

Overhauling a Decades-Old Legal Framework

The new Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act repeals two key older laws. It replaces the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. This consolidates all civil nuclear regulations under one modern statute.

For the first time, private firms can participate in fuel cycle activities and power plant operations. They can engage in equipment manufacturing and power generation. All activities remain under the strict oversight of the Atomic Energy Regulatory Board.

The law also permits foreign direct investment. It allows up to 49% FDI in certain nuclear sector activities. According to Reuters, this is expected to attract crucial capital and accelerate the adoption of new technologies.

Driving Clean Energy Goals and Strategic Partnerships

The government’s goal is clear. It aims to achieve 100 gigawatts of nuclear capacity by 2047. Current capacity stands at just under 9 gigawatts. This ambitious target requires massive investment and faster technology deployment.

The U.S. endorsement is a major strategic development. It paves the way for deeper nuclear cooperation under the landmark 2008 civil nuclear deal. Joint innovation could focus on next-generation small modular reactor technology.

The move also supports India’s energy security. It diversifies its clean energy mix beyond solar and wind. Analysts say this is vital for providing reliable, carbon-free baseload power to a growing economy.

The enactment of the SHANTI Act marks a pivotal shift in India’s energy policy. It transitions nuclear power from a state-controlled endeavor to a collaborative, investment-driven industry. This strategic opening is set to redefine the country’s clean energy landscape for decades to come.

Dropping this nugget your way-

What does the SHANTI Act do?

The SHANTI Act repeals old nuclear laws and creates a new unified legal framework. It allows private sector participation in the civil nuclear energy sector for the first time. The law also permits foreign direct investment under regulatory oversight.

Why is the US interested in this law?

The US sees the law as enabling stronger energy security partnerships with India. It opens doors for joint research, development, and innovation in nuclear technology. This builds upon the foundation of the 2008 US-India civil nuclear agreement.

What is India’s nuclear capacity goal?

India aims to have 100 gigawatts of nuclear power capacity by 2047. This is a significant increase from the current capacity of about 8.78 gigawatts. The new law is seen as essential to attracting the investment needed to reach this target.

Can foreign companies now build nuclear plants in India?

The law allows for foreign investment and technological collaboration. Private players, including those with foreign partners, can participate in construction and operation. All projects remain subject to strict regulatory approval and safety oversight by Indian authorities.

What was the previous law governing nuclear energy?

The sector was primarily governed by the Atomic Energy Act of 1962. That law restricted nuclear power generation largely to government entities like the Nuclear Power Corporation of India Ltd. The new SHANTI Act replaces this restrictive, state-centric model.