India's nuclear ambitions may be blunted by limits on foreign reactor technology
The Department of Atomic Energy released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy Act (SHANTI Act) governing how private developers may deploy foreign reactor technology in India
Under the draft framework, any imported reactor design must have a proven track record of safe commercial operation in its country of origin, and requires separate design approval from India's nuclear regulator before construction can begin
Companies seeking to use foreign reactors must obtain operational and licensing certifications from the reactor's country of origin, in addition to Indian regulatory clearance
Industry stakeholders have flagged that the added approval layers could steer private developers toward domestic reactor technology over imported designs, potentially limiting foreign capital and technology inflows
The public consultation window on the draft rules is open, with stakeholders invited to submit feedback by early September 2026
The SHANTI Act, 2025 — India's Consolidated Nuclear Law
The Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025, received presidential assent in December 2025 and is the most significant restructuring of India's nuclear legal framework since independence. It repeals and replaces both the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010 (CLND Act), consolidating them into a single statute and, for the first time, opening nuclear power generation to private sector participation.
Key Details
- Came into force 21 December 2025; repeals the Atomic Energy Act, 1962 and the CLND Act, 2010
- Permits private companies to own and operate nuclear power plants, while reserving sensitive activities (fuel cycle, enrichment, sensitive technology) for the central government
- Grants statutory status to the Atomic Energy Regulatory Board (AERB), which previously operated under an executive order
- Target: 100 GW of nuclear capacity by 2047, up from India's current installed nuclear capacity of roughly 8-9 GW
The draft rules on foreign reactor technology are subordinate legislation being framed under the SHANTI Act's private-participation provisions — the first real test of how liberal the newly opened sector will actually be in practice for foreign vendors.
Civil Nuclear Liability — From the CLND Act to the SHANTI Act
India's original nuclear liability law, the Civil Liability for Nuclear Damage Act, 2010, was long criticised by foreign reactor suppliers (like GE and Westinghouse) because Section 17(b) allowed the operator a statutory right of recourse against equipment suppliers in case of an accident — a provision that departed from the international norm of channelling all liability exclusively to the operator. This deterred foreign reactor suppliers from entering India for over a decade.
Key Details
- CLND Act, 2010, Section 17(b) — created supplier liability, deterring foreign vendors; India is a signatory to the Convention on Supplementary Compensation for Nuclear Damage (CSC)
- The SHANTI Act, 2025 replaces this framework with a capped operator liability model and removes automatic statutory supplier liability; supplier recourse now depends on private contract terms under Section 16(a) of the new Act
- This shift aligns India's liability regime more closely with international practice, addressing the long-standing objection of foreign reactor vendors
Liability reform under the SHANTI Act was meant to finally attract foreign reactor vendors after 15 years of hesitation; the new draft rules on technology approval represent a second, separate regulatory hurdle (beyond liability) that could still deter the same foreign players the liability reform was designed to attract.
Nuclear Regulatory Architecture — AERB and Reactor Licensing Stages
The Atomic Energy Regulatory Board (AERB) is India's nuclear safety regulator, historically constituted through an executive order in 1983 under the Atomic Energy Act, 1962, and now given statutory backing under the SHANTI Act. Reactor projects in India (as elsewhere) go through sequential regulatory clearances — siting, construction, commissioning, and operating licences — each requiring separate AERB approval.
Key Details
- AERB was constituted in 1983 by executive order under Section 27 of the Atomic Energy Act, 1962; the SHANTI Act now gives it statutory status, strengthening its independence
- Under the draft rules, private developers must first secure "approval in principle" (covering vendor engagement, preliminary development, land acquisition) before a formal licence, followed by stage-wise scrutiny of design, siting, construction, commissioning and operation
- Foreign reactor designs must additionally hold operational/licensing certification from their country of origin (e.g., US NRC, French ASN) before Indian design approval is granted
The dual requirement of home-country certification plus AERB stage-wise clearance is precisely the added layer of approval that critics argue could favour indigenous reactor designs (like India's Pressurised Heavy Water Reactors) over imported light-water reactor technology from foreign vendors.
- SHANTI Act, 2025: presidential assent 21 December 2025; repeals Atomic Energy Act 1962 and CLND Act 2010
- India's current installed nuclear capacity: approximately 8-9 GW; target under SHANTI Act framework: 100 GW by 2047
- CLND Act, 2010, Section 17(b) (supplier liability) is replaced by contractual recourse under SHANTI Act Section 16(a)
- Draft rules under SHANTI Act released by the Department of Atomic Energy in August 2026; public feedback window open until early September 2026
- Foreign reactor designs require both country-of-origin licensing certification and separate AERB design approval before construction
- AERB originally constituted in 1983 by executive order; now granted statutory status under the SHANTI Act