NEW DELHI: In a major regulatory push aimed at overhauling and structuring India’s nuclear energy sector, the Department of Atomic Energy (DAE) has officially released the comprehensive draft rules for the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025. This landmark legislative and regulatory framework is designed to bring unprecedented clarity, financial security, and operational efficiency to nuclear power generation, opening up robust pathways for both domestic players and international technology vendors.
At the heart of the newly released draft rules is a stringent financial accountability and liability framework. According to the guidelines, nuclear plant operators are mandated to maintain an active insurance policy, robust financial security, or an optimal combination of both to cover potential nuclear damages. Crucially, this financial security must remain firmly in place until every trace of spent fuel is completely removed from the designated storage pool. Furthermore, the draft stipulates that the Central Government will constitute a specialized panel of experts once every five years to review and update the maximum limits of an operator's civil liability for nuclear damages, ensuring the framework remains dynamic and responsive to evolving economic and safety realities.
Addressing the technological dimension, the draft rules place heavy emphasis on safety and international standards, particularly concerning foreign technologies. Any nuclear power plant or reactor utilizing a foreign design must secure official certification or approval from the regulatory body of its country of origin. The guidelines explicitly define the 'country of origin' as nations that boast self-reliance in nuclear reactor design and supply-chain ecosystems, and whose regulatory approvals command global trust. Additionally, such reactor designs must already be operational either within the country of origin or in another foreign jurisdiction, mitigating technological risks for India's domestic energy grid.
To accelerate project execution and reduce bureaucratic bottlenecks, the DAE has introduced a flexible yet rigorous licensing mechanism. The licensing authority is empowered to grant an 'in-principle approval' upon the admission of an application, even if a specific site or technology has yet to be finalized. Upon securing this valid in-principle clearance, project proponents can actively move forward with negotiations alongside reactor technology vendors, alongside acquiring necessary land and infrastructure. However, once the project formalizes, operators must adhere to a strict single composite licence framework. This single licence comprehensively authorizes building, owning, operating, and ultimately decommissioning the nuclear facility. The rules explicitly prohibit the separation, division, or independent application of licenses for any of these individual lifecycle activities.
As India continues its aggressive march toward green and sustainable energy transitions, the SHANTI Act draft rules mark a critical institutional milestone. By combining global safety benchmarks with streamlined single-window licensing and ironclad liability safeguards, the government is laying a predictable, transparent foundation that could eventually unlock massive investment opportunities, foster public-private partnerships, and catalyze deep-tech innovations across the broader industrial manufacturing and energy ecosystem.
"The release of the draft rules for the SHANTI Act, 2025 by the Department of Atomic Energy is a visionary step that brings much-needed regulatory maturity and financial accountability to India's energy infrastructure. By introducing a single composite licensing model alongside rigorous safety and foreign design standards, the government is significantly reducing execution risks for large-scale capital investments. For deep-tech startups, manufacturing vendors, and private sector stakeholders looking to enter the nuclear supply chain, this creates a transparent, predictable, and highly secure business environment. At StartupLanes, we view this as a transformative catalyst that will not only strengthen India's energy security but also unlock unprecedented entrepreneurial and investment opportunities across the advanced engineering and clean-tech sectors over the coming decade." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
