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The draft Rules and Regulations under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2026, represents a watershed moment in India’s nuclear policy by formally enabling private sector participation in civil nuclear power generation. The framework introduces a single composite license that authorizes wider applications of nuclear power, and access to approved domestic & foreign technologies, while retaining stringent safety, liability, and financial requirements. The accompanying regulations establish stage-wise safety authorization and regulatory hold points across the plant lifecycle, supported by periodic safety reviews, radiation protection, emergency preparedness, and waste management requirements. Overall, the framework aims to accelerate nuclear capacity creation while retaining strong regulatory and safety oversight.

Opening India’s nuclear sector to private participation:

The Department of Atomic Energy has released the draft SHANTI Rules, which propose a single composite licence covering construction, ownership, operations, and decommissioning nuclear power plants or reactors, while expanding nuclear applications to captive power, process heat, and hydrogen. It allows access to domestic and foreign reactor technologies, subject to regulatory approval, while retaining stringent oversight over safety, security, liability, and decommissioning

Draft SHANTI Rules 2026:

The draft measures allow eligible private companies to build, own, operate, and decommission nuclear facilities via a single composite license. The framework broadens nuclear applications to captive power, process heat, hydrogen, and other peaceful uses, while permitting approved domestic and international reactor technologies. However, private entry remains subject to stringent financial, technical, safety, fuel supply, liability, waste management, and decommissioning requirements, including mandatory insurance and financial security. While uranium and thorium mining remain largely under government control, the rules bring fuel fabrication within the licensing framework and retain strong government powers over abandoned or transferred facilities. Overall, they seek to unlock private investment and accelerate nuclear capacity while retaining tight government control over strategic resources, safety, and nuclear liability.

Strengthening stage-wise nuclear safety oversight:

The draft Regulations establish a stage-wise safety authorization framework, covering siting, construction, commissioning, operations, and decommissioning of nuclear facilities. Key requirements include regulatory hold points, site, and safety assessments, quality assurance, emergency preparedness, radiation protection, trained personnel and radioactive waste management. The regulations mandate periodic safety reviews and life-extension assessments, ensuring continued compliance with safety standards throughout the plant’s operating life. Overall, the framework provides continued regulatory oversight focused on nuclear safety, radiation protection, emergency preparedness, and safe waste management

Our view:

The SHANTI Rules and Regulations could materially accelerate India’s small modular reactor (SMR) opportunity by providing a framework for private participation, a single composite license, and wider use of nuclear power for captive generation, process heat, and hydrogen, improving addressable market for industrial and commercial applications. It could support the planned SMR ambitions of NTPC, Jindal Nuclear, Tata Power, Reliance and Adani Power, while creating a sizeable EPC and equipment opportunity for L&T, BHEL, Power Mech, MTAR Technologies, and Walchandnagar Industries. The framework’s allowance for approved domestic and foreign reactor technologies could facilitate technology partnerships and faster deployment, while stagewise safety approvals, assured fuel supply, waste management, and decommissioning requirements provide greater regulatory certainty across the project lifecycle. Overall, the rules can help convert India’s SMR pipeline from a long-term ambition into a more structured investment and execution opportunity, benefitting nuclear developers.

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