Nuclear Energy Law & Renewable Sector: Eco Survey

New Delhi, Jan 29 (PTI) The SHANTI Act, which promotes generation and usage of nuclear energy, is a major step taken by the government to overcome the concerns of intermittency and energy security in the area of clean power, the Economic Survey said.

India has an installed nuclear capacity of over 8.7 gigawatts (GW), said the Economic Survey 2025–26 tabled in Parliament on Thursday.

The country aims to have 100 GW of renewable energy capacity by 2047.

"Nuclear is one of the cleanest forms of energy, capable of overcoming the concerns of intermittency and energy security associated with other renewable sources of energy like solar and wind power," the pre-budger document said.

Besides, nuclear energy can provide a reliable power source for heavy industries that find it difficult to use renewable sources due to technological challenges. It can be used to produce hydrogen to power vehicles as well as industrial processes.


The government had announced the Nuclear Energy Mission in the Union Budget 2025-26 and allocated Rs 20,000 crore with the aim of developing at least five indigenously-designed and operational small modular reactors (SMRs) by 2033.

"Therefore, as a major step forward in this direction, India has adopted the landmark Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act in December 2025," the survey said.

The SHANTI Act consolidates and modifies India's nuclear legal frameworks -- the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, (CLNDA) 2010 -- to enable participation of the private sector or state governments, previously not allowed under the Atomic Energy Act, 1962, and also addresses the liability structure under the CLNDA by establishing a graded liability framework, but without diluting victim compensation.

The new framework enables private sector participation in key activities, including plant operations, power generation, equipment manufacturing and carrying out research and innovations in the field of peaceful uses of atomic energy.

The survey further said that a credible and orderly transition from fossil fuels depends on the timely availability of reliable, non-fossil energy sources such as nuclear power, alongside a well-defined peak-emission pathway.