India's Nuclear Sector Opens to the World: How the SHANTI Act Is Rewriting History

After decades of legislative barriers and a trust deficit rooted in the Tarapur fuel crisis of 1974, India's landmark SHANTI Act has thrown open its nuclear sector to private and foreign players, drawing America's biggest energy companies back to a market worth nearly 300 billion dollars.

In Short

• Delegation included Nuclear Energy Institute and US-India Strategic Partnership Forum representatives
• India plans phased nuclear expansion from 8.8 GW to 100 GW
• New law allows private Indian ownership of nuclear plants for first time

A 20-member U.S. nuclear industry delegation met Union Minister of State for Science and Technology Dr Jitendra Singh on Monday to explore investment opportunities in India's nuclear sector, months after the SHANTI Act overhauled the country's six-decade-old nuclear laws.

The delegation, comprising representatives from the Nuclear Energy Institute and the U.S.-India Strategic Partnership Forum, discussed manufacturing partnerships, supply chain integration and technology cooperation under India's Nuclear Energy Mission.

Singh said India aims to scale nuclear power capacity from 8.8 gigawatts to 100 gigawatts by 2047 through a phased expansion strategy, adding that the programme was creating major opportunities for global partnerships in manufacturing, technology cooperation, supply chain integration and advanced research.

The estimated market value stands at nearly 300 billion dollars.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025, repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, replacing both with a single comprehensive law.

For the first time since independence, private Indian companies may own and operate nuclear plants in India, while foreign firms may participate through India-incorporated joint ventures and invest up to 49 per cent under the automatic route, though companies incorporated outside India cannot directly hold operating licences under the Act.

The old liability framework had long kept Western companies away. Under the previous law, nuclear suppliers faced direct legal exposure if an accident occurred at a plant. The SHANTI Act replaces a flat liability cap with a graded structure that varies by reactor size and type, bringing India closer to international norms.

The implementation framework under the Act is currently being finalised, and American firms have signalled they want formal input into rule-making before the regulations are set.

Questions around fuel supply security remain unresolved. After India's 1974 Pokhran nuclear test, the United States began delaying enriched uranium shipments to the Tarapur Atomic Power Station, using fuel as leverage to pressure India into signing the Nuclear Non-Proliferation Treaty. India subsequently sourced fuel from France, China and Russia. American companies can today offer long-term commercial supply contracts, not sovereign guarantees, and New Delhi is aware of the distinction.

Unresolved issues around U.S. export approvals and reprocessing arrangements on the Indian side also remain on the table.

Singh said the SHANTI Act reform was expected to create a more enabling ecosystem for investment, industrial collaboration, manufacturing partnerships and technology cooperation aligned with India's Nuclear Energy Mission.

The delegation is scheduled to visit Mumbai and meet Maharashtra Chief Minister Devendra Fadnavis before concluding its visit on 21 May.

- Ends