Clean Energy and ESG Governance: ESG BROADCAST shares key takeaways.
India’s Parliament has introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marking a pivotal legislative step in modernising the country’s nuclear sector. The Bill consolidates and replaces the fragmented legal framework that previously governed nuclear energy, aiming to support India’s clean energy transition while reinforcing safety, governance, and regulatory clarity. The Indian government officially posted the backgrounder for the SHANTI Bill on 19 December 2025, signalling its intent to align nuclear regulations with current and future energy needs.
The SHANTI Bill sets out to strengthen statutory regulation of nuclear energy by granting legal recognition to the Atomic Energy Regulatory Board (AERB). By doing so, the legislation aims to enhance oversight and ensure consistent compliance across nuclear operations. Under this framework, the Bill retains sovereign control over sensitive aspects of the nuclear fuel cycle, including enrichment, waste management, and high-risk activities, while opening less critical areas to limited private sector participation under strict regulatory oversight.
A core objective of the Bill is to streamline the licensing and safety authorisation processes for nuclear activities. It introduces a graded liability structure that distinguishes liability limits according to facility type and risk profile. This replaces the previous one-size-fits-all approach and aligns liability with the nature of nuclear installations. The Bill also incorporates provisions for dispute redressal mechanisms and appellate pathways to enhance investor confidence and institutional accountability.
In addition to power generation, the SHANTI Bill creates a regulatory framework for the peaceful use of nuclear and radiation technologies in sectors such as healthcare, agriculture, and industry. This inclusion expands the scope of nuclear applications beyond electricity production, reflecting a broader vision of innovation and technology adoption. It further allows exemptions for certain research and development activities, promoting scientific advancement within a controlled environment.
The Bill ensures that safety, security, and safeguards remain central to India’s nuclear trajectory. It reinforces quality assurance systems and emergency preparedness protocols in alignment with international best practices. Moreover, it empowers the government to appoint specialised Claims Commissioners and establish a Nuclear Damage Claims Commission to adjudicate compensation claims related to severe nuclear incidents.
Strategic significance lies in the SHANTI Bill’s potential to catalyse investment, enhance regulatory transparency, and enable technology integration while maintaining sovereign control over critical nuclear functions. For ESG stakeholders, the Bill underscores India’s commitment to balancing energy security, environmental sustainability, and stakeholder accountability. It positions nuclear energy as a reliable, low-carbon complement to renewable sources, with implications for compliance, investor confidence, and long-term market development in the nation’s clean energy landscape.
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