Quick Take
- The first draft of SHANTI Act Rules is ready, with stakeholder talks now underway across key areas.
- Section 84 covers 26 licensing areas, while Section 85 mandates regulations across eight safety areas.
- Final notification is likely within a few months, unlocking private entry into India’s nuclear sector.
In This Article
The first draft of the SHANTI Act Rules is ready, and the government has begun talks with stakeholder ministries and departments, ET has reported. Final notification is likely within a few months.
The much-awaited framework operationalises the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. The Act, which received presidential assent in December 2025, replaced two older laws. It opens India’s tightly-controlled nuclear sector to private and joint-venture participation for the first time since Independence.
StartupFeed Insight
The real signal here is not the Act itself, it is the rules. A liberalised law means little until licensing, insurance, and safety procedures are spelled out in operational detail. Private developers, foreign equipment makers, and insurers cannot commit capital to projects with 10-year gestation periods while the fine print sits in draft form. Watch the Department of Atomic Energy and NITI Aayog closely: whoever gets clarity on liability caps and licensing timelines first will shape which players enter. Expect the final notification to land before the end of 2026, with the earliest private licence applications following in the first half of 2027. By Avinash.
SHANTI Act Rules: Draft Breakdown
The SHANTI Act Rules are the operational framework that turns the 2025 law into working procedure. The draft covers licensing, civil liability, and dispute resolution, according to ET. Several rounds of discussion are underway to ensure all relevant aspects are detailed clearly before the framework is finalised.
The rollout of the Act, however, depends on the Centre notifying these rules and regulations. Officials have indicated the process is extensive and time-consuming, which is why the exercise may extend over several more months as multiple agencies are consulted.
| Element | Detail | Notes |
|---|---|---|
| Draft status | First draft ready | Talks with stakeholders on |
| Section 84 (Rules) | 26 areas | Licensing, liability, disputes |
| Section 85 (Regulations) | 8 areas | Safety authorisation, emergencies |
| Final notification | Likely in a few months | Rollout depends on this step |
| Governing Act | SHANTI Act, 2025 | Assent received December 2025 |
The most striking detail is the split of labour between the two sections: 26 rule areas against eight regulation areas, a division that shows how much groundwork licensing alone demands.
About the SHANTI Act
The SHANTI Act, 2025 is India’s unified nuclear energy law, passed by Parliament in December 2025 and given presidential assent the same month. It replaced the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. The law consolidates regulation, licensing, safety, and liability, and for the first time permits Indian private companies and government-private joint ventures to build and operate nuclear plants under regulatory oversight, according to the PRS Legislative Research bill summary.
What Do Sections 84 and 85 Cover?
Section 84 of the SHANTI Act empowers the government to frame rules for implementing the Act. It covers 26 areas, ranging from measures for the security of radioactive substances, application and licensing procedures, and terms and conditions for granting licences, to insurance policies and procedures for the search-cum-selection committee that recommends the chairperson and members of the regulatory board, inspection, verification, and investigation procedures, filing of appeals before the appellate tribunal, and adjudication of claims for nuclear damage.
Section 84 requires the Centre to frame rules covering 26 areas, while Section 85 mandates regulations across eight areas.
Section 85 covers eight areas for regulations. These include activities requiring safety authorisation, radiological emergencies, and the time, place, rules of procedure and quorum for meetings of the board. Together, the two sections form the compliance spine that private and foreign entities will need to satisfy before any licence is granted.
Why Do These Rules Matter For Private Players?
The SHANTI Act Rules matter because the Act cannot take effect until the Centre notifies them. The law has already cleared Parliament, but investors, equipment suppliers, and insurers need the operational detail before committing to long-cycle nuclear projects.
The Act introduced a graded liability framework, replacing the earlier single statutory cap. Under the new structure, the operator liability limit ranges from Rs 100 Cr to Rs 3,000 Cr based on power capacity, according to the PRS bill summary. Clear rules on insurance and licensing will decide how quickly private developers can move.
How Does This Fit India’s 2047 Goal?
The SHANTI Act supports India’s target of 100 GW of nuclear power capacity by 2047, a sharp jump from current levels. NITI Aayog convened a stakeholder consultation on the Act’s implementation on July 10, 2026, chaired by Member Prof. Abhay Karandikar. Discussions were structured around three pillars: legislative and regulatory framework, finance and insurance, and manufacturing and capacity building.
| Consultation Pillar | Focus |
|---|---|
| Legislative & Regulatory | Draft rules, regulations, FDI policy |
| Finance & Insurance | Risk mitigation, project insurance, public trust |
| Manufacturing & Capacity | Domestic supply chain, skilled workforce |
The consultation flagged that the Act enables responsible private and joint-venture participation to bridge resource constraints and shorten gestation periods, according to NITI Aayog. What sets this reform apart is scale: no earlier nuclear law allowed private plant ownership, so the rules now define an entirely new market.
What’s Next
The government is expected to complete stakeholder consultations and notify the final SHANTI Act Rules within the coming months. Once notified, the framework will open the door to the first private licence applications under the new law. Officials have signalled the process could stretch further as more agencies are brought in. Will the final rules give investors the liability clarity they have been waiting for?
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