India has taken another step towards operationalizing its new nuclear-energy framework, with the Department of Atomic Energy releasing draft rules and regulations under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
The proposed framework sets out provisions covering nuclear project licensing, operator liability, financial protection, nuclear-material accounting, radiation safety, radioactive-waste management and the use of foreign reactor technology. The rules are part of the government’s broader effort to expand nuclear power capacity and enable wider participation by private entities while retaining regulatory oversight.
Draft Rules Aim to Define How Nuclear Projects Could Be Licensed
Under the proposed framework, companies seeking to establish nuclear power plants would have to undergo a regulatory screening and approval process. The draft provides for an in-principle approval before applicants proceed with certain preliminary activities, including discussions with reactor-technology suppliers and development of supporting infrastructure.
The proposal also envisages regulatory oversight across the lifecycle of a nuclear facility, including construction, operation and eventual decommissioning. A single composite licence covering the different stages of a nuclear facility has also been reported as part of the proposed framework.
These provisions are contained in a draft framework and therefore remain subject to the government’s consultation and finalization process.
Foreign Reactor Technology Faces Conditions
One of the more significant elements of the draft concerns the potential use of foreign reactor technology in India.
According to the proposed rules, a nuclear power plant or reactor based on a foreign design would need to have its design certified or approved by the relevant regulatory authority in its country of origin. The reactor would also need to have an operating record in the country of origin or another foreign country.
The draft framework therefore does not amount to an unrestricted opening for any foreign reactor technology. Instead, it proposes eligibility conditions linked to regulatory approval and operating experience.
Financial Protection and Operator Liability
The proposed rules also address how nuclear operators would be expected to manage financial risks associated with nuclear incidents. Operators would be required to maintain insurance, financial security or a combination of the two to meet liabilities arising from nuclear damage. The framework also addresses financial arrangements connected with decommissioning and radioactive-waste management.
The proposed provisions are intended to establish clearer financial safeguards as India prepares for potentially greater participation by private companies in nuclear power.
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SHANTI Act Creates Legal Basis for Wider Participation
The draft rules follow the enactment of the SHANTI Act, 2025, which provides for wider participation in India’s nuclear sector under government licensing and regulatory oversight.
The government has linked the reforms to its Nuclear Energy Mission, which targets nuclear power capacity of 100 GW by 2047. It has also set a target of developing and operationalizing at least five indigenous Small Modular Reactors by 2033.
Draft Framework Comes as India Plans Nuclear Expansion
The proposed rules come as India pursues expansion across several areas of nuclear technology. The government has highlighted indigenous 700 MWe Pressurized Heavy Water Reactors, advanced reactor technologies and SMRs as part of its capacity-addition strategy. It has also approved pre-project activities for two 500 MW Fast Breeder Reactors at Kalpakkam, Tamil Nadu.
Earlier this year, the 500 MWe Prototype Fast Breeder Reactor at Kalpakkam attained first criticality, marking an important milestone in India’s three-stage nuclear programme.
What The Draft Rules Could Mean for Industry
If the proposed framework is finalized, it could provide greater clarity to companies considering participation in India’s nuclear sector by setting out the proposed requirements for licensing, financial protection, technology eligibility and regulatory compliance.
However, the rules are still in draft form. Their provisions may change following stakeholder feedback and the government’s finalization process. The release of the draft should therefore be viewed as a step towards implementing the SHANTI Act rather than as evidence that individual private nuclear projects have already received approval.
The development comes against the backdrop of India’s longer-term ambition to increase nuclear power’s contribution to the country’s electricity system while developing domestic reactor technology, manufacturing capabilities and supply chains.
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What This Means
The latest move marks a shift from legislation to implementation: the SHANTI Act established the legal framework for wider participation, while the draft rules begin to spell out how that framework could operate in practice.
For industry, the next stage will depend on the final rules, regulatory processes and other policy measures that will determine how quickly proposed private-sector and technology partnerships can translate into actual nuclear projects.
Source: Department of Atomic Energy, Government of India; Press Information Bureau
