SHANTI Law: NPCIL will rework its nuclear economic model in light of the new law

The Nuclear Power Corporation of India Limited (NPCIL) will hold industry consultations to seek further inputs on the nuclear power business model after the passage of the Sustainable Operation and Advancement of Nuclear Energy to Transform India (SHANTI) Act, 2025, which allows private participation in the nuclear sector.

The NPCIL will organize a consultative workshop on January 22 to develop an approach for implementing the Bharat Small Reactors (BSR) program in line with the new nuclear regime.

“To this end, the NPCIL seeks structured inputs from industry stakeholders to ensure that the revised model adequately meets implementation requirements while preserving national policy objectives,” it said in a communication to the industry on January 6.

The NPCIL invited tenders for BSRs on December 31, 2024 and several private players, including Adani Group, Reliance, Tatas, Jindal and JSW, have expressed interest. However, the industry demanded certain clarifications before moving forward.

“As part of the government’s policy to enable private industry to access reliable, carbon-free nuclear power, NPCIL has previously issued a request for proposals, outlining the business model for industry participation,” he said.

Given the interest generated, the deadline for submitting proposals has been extended until March 31, 2026.

The RFP was initially structured in accordance with the provisions of the Atomic Energy Act, 1962 and the Nuclear Damage Liability Act, 2010, which were applicable at the time.

“This landmark legislation provides an enabling and liberalized framework for increased industry participation in nuclear energy,” he adds.

India has set a target of reaching 100 GW of nuclear power by 2047, up from 8.8 GW currently, with a focus on small modular reactors for industrial decarbonization as part of the country’s net-zero goal.