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Analysis · Climate, Energy & Sustainability

India allows private nuclear plants after SHANTI Bill passes

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Date
Company
India
What it does
Nuclear energy policy reform
Kind
Analysis
Sector
Climate, Energy & Sustainability

What they do

India passed the SHANTI Bill to allow private companies to build and operate nuclear power plants for the first time

What happened

The law repeals old acts and gives the Atomic Energy Regulatory Board statutory independence to oversee the new sector

Why it matters

Holtec International plans to deploy small modular reactors while Adani Group explores nuclear power for its AI data centres

The details

  • The SHANTI Bill received Presidential assent in December 2025 after passing both Houses of Parliament.
  • This legislation marks the first time since Independence that private Indian firms can own and decommission nuclear plants.
  • The Atomic Energy Regulatory Board has been granted statutory independence under the new legal framework.
  • Liability structures have been restructured to align partially with international conventions for nuclear damage claims.
  • Holtec International plans to deploy up to 200 small modular reactors through its Indian subsidiary.
  • Adani Group is exploring nuclear plants to support its expanding ambitions in AI data centre infrastructure.
  • Tata Consulting Engineers and Larsen & Toubro are positioning themselves for a transnational nuclear manufacturing corridor.
  • India currently operates 25 nuclear reactors producing approximately 8.88 GW, which is about 3% of total electricity generation.

The bigger picture

  • NPCIL was previously burdened by monopoly responsibilities and dependent on government budgetary allocations for operations.
  • Interest payments on NPCIL's borrowed capital often exceeded the actual cost of reactor components.
  • The strategy of building non-standardized reactors denied suppliers economies of scale and increased costs.
  • The Prototype Fast Breeder Reactor at Kalpakkam has faced significant delays since its original 2010 commissioning target.
  • Ten pressurised heavy water reactors were planned but only four are likely operational by 2030.
  • The Kudankulam project cost escalated from ₹13,171 Cr to over ₹22,000 Cr due to delays and issues.
  • The Jaitapur project with France's EDF has been in negotiation for over fifteen years without concrete being poured.
  • India's nuclear R&D ecosystem was closed and centralised for six decades under government labs.
  • Private firms and startups were systematically excluded from frontier nuclear science research activities.
  • Other nations like the US and China have multiple SMR designs in testing while India had none privately.
  • The Nuclear Energy Mission aims to develop five indigenous SMR designs by 2033 with a ₹20,000 Cr allocation.
  • India lacks modern experimental infrastructure accessible to industry and academia for advanced reactor validation.
  • Failure to build indigenous capability risks locking the market into foreign platforms with IP constraints.
  • India's data centre capacity is projected to grow ninefold to 9.2 GW by 2030.
  • Nuclear energy offers 24/7 baseload power with a negligible carbon footprint and high land efficiency.

About the business

  • Holtec International is deploying small modular reactors via a dedicated Indian subsidiary entity.
  • Adani Group is integrating nuclear power solutions into its broader AI data centre business strategy.
  • Larsen & Toubro is establishing capabilities in transnational nuclear manufacturing and engineering services.
  • Tata Consulting Engineers is positioning itself within the emerging nuclear supply chain ecosystem.
  • India's current nuclear fleet consists of 25 reactors generating approximately 8.88 GW of power.
  • The government targets 100 GW of nuclear capacity by 2047 requiring massive investment.
  • Estimated investment requirements for the 2047 target stand at ₹19 Lakh Cr or $214 billion.
  • Data centre electricity demand is expected to double globally by 2030 according to IEA estimates.
  • AI-optimised servers consume significantly more power than standard computing hardware infrastructure.
  • Nuclear facilities provide land efficiency roughly twenty times greater than solar energy installations.
  • Hyper-scalers globally are signing contracts specifically for nuclear-powered data centre operations.
  • Strategic dependencies on foreign fuel supplies pose risks to India's digital economy security.
  • Indigenous SMR development aims to reduce reliance on imported reactor technologies and designs.
  • Advanced reactor concepts remain confined to long-gestation programmes with limited external validation currently.
  • Light water reactor experience in India remains import-dependent and operationally narrow in scope.

What happens next

  • Holtec International plans to deploy up to 200 small modular reactors in India.
  • Adani Group continues exploring nuclear integration for its AI data centre expansion.
  • Tata Consulting Engineers and Larsen & Toubro are building manufacturing corridors for nuclear components.
  • The government aims to achieve 100 GW nuclear capacity by 2047.
  • Five indigenous SMR designs are targeted for development by 2033 under the Nuclear Energy Mission.
  • India seeks to avoid strategic dependencies on foreign nuclear technology and fuel supplies.

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