India Passes SHANTI Act to Liberalize Nuclear Sector

India's Parliament has passed landmark legislation to liberalize the civil nuclear sector, allowing private companies to participate in building and operating nuclear power plants for the first time. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, known as the SHANTI Act, cleared the Lok Sabha on Wednesday and the Rajya Sabha on Thursday by voice vote, awaiting presidential assent to become law.

The new act repeals the Atomic Energy Act of 1962, which restricted nuclear activities to public sector enterprises, and the Civil Liability for Nuclear Damage Act of 2010. Under the previous framework, only government-owned entities could construct and manage nuclear facilities, limiting expansion in a sector critical to India's energy security. The SHANTI Act introduces provisions for licensing private firms, joint ventures, and government companies to develop, own, operate, and decommission reactors, aiming to accelerate growth amid rising electricity demand.

A core change addresses long-standing concerns over liability in accidents, which had deterred foreign suppliers since the 2008 Indo-U.S. nuclear deal. The 2010 law permitted operators to...