SHANTI Rules: US Industry Prepares Its Wish List as India Opens Nuclear Sector

The US nuclear industry is preparing a detailed submission to India on the draft rules and regulations under the SHANTI Act, as New Delhi moves to turn its decision to open the nuclear power sector to private participation into a workable regulatory framework.

The US-India Strategic Partnership Forum (USISPF), which earlier this year led a delegation of American nuclear industry representatives to India to explore opportunities in the civil nuclear sector, is coordinating the industry's response. It plans to submit the feedback to the Department of Atomic Energy (DAE) by the September 4 deadline.

The development is significant because the draft rules are among the first detailed steps towards implementing the SHANTI Act and determining how private companies will actually operate in India's nuclear sector. The proposed framework covers licensing, insurance, financial security, safety authorisations and project structuring, while retaining government control over sensitive nuclear activities.

USISPF held discussions on Thursday with Indian legal experts and the US-based Nuclear Energy Institute and separately briefed its Nuclear Industry Committee on the draft framework. The discussions examined the implications of private-sector entry and identified licensing, liability and project structuring as areas requiring industry attention and possible feedback to the government.

The interest comes as India attempts to move beyond a largely state-led nuclear model. Under SHANTI, private companies and joint ventures can build, own and operate nuclear plants, undertake decommissioning and conduct nuclear research and development. The reform is aimed at bringing in capital, technology and additional capacity as India pursues its ambitious goal of reaching 100 GW of nuclear power by 2047.

Yet opening the sector also brings difficult questions over who carries the risk. The draft rules require operators to maintain insurance, financial security or a combination of both against nuclear damage. At the same time, the Supreme Court is examining whether the Act's liability limits could restrict constitutional courts from awarding adequate compensation to victims after a major nuclear accident.

That debate could make the US industry's submission particularly important. Foreign reactor companies need predictable liability and licensing rules before committing billions of dollars to projects, while critics argue that commercial ease must not come at the cost of safety and public accountability.

India's nuclear expansion is therefore entering a crucial phase. The question is no longer simply whether private companies will be allowed into the sector, but how much freedom they will receive, how much risk they will carry and how firmly the government will retain control.

The answers could shape not only US-India nuclear cooperation but also whether India's ambitious 100-GW target can become a realistic industrial programme.