Inside the SHANTI Act 2025: India’s nuclear policy meets artificial intelligence

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Publish Date: 2026-01-14 23:35:00

Source Domain: etedge-insights.com

Legislative Shift: The SHANTI Act, 2025 marks a significant change in India’s nuclear power policy by dismantling the state monopoly and enabling private entities to engage in nuclear power plant operations.
Energy Infrastructure for AI: The act addresses the critical need for stable, high-quality, baseload power for the adoption of artificial intelligence, driven by a growing AI sector expected to contribute nearly $1 trillion to GDP by 2035.
Liability and Liability Caps: SHANTI’s controversial liability provisions cap operator liability at ₹3,000 crore, aiming to attract private investment by minimizing legal barriers, despite concerns about its impact on accountability.
Small Modular Reactors (SMRs): The act supports the deployment of SMRs, which provide stable, round-the-clock power essential for data centers and industrial clusters, enhancing integration with AI technologies.
Regulatory Framework Updates: SHANTI seeks to create a unified regulatory framework overseen by the Atomic Energy Regulatory Board (AERB) to ensure safety and accountability while fostering private sector participation.
Future-Proofing Energy Supply: By enabling nuclear power infrastructure, SHANTI aims to secure reliable energy to support India’s growing digital and AI infrastructure, fostering an inclusive technological environment.
Complementary Measures Required: To be fully effective, SHANTI requires market reforms, improved regulatory frameworks, and better coordination between central and state governments to address existing energy grid challenges.
Strategic Vision for Energy and Economy: The act signals India’s strategic investment in nuclear energy to sustain its future growth, particularly in technology-driven sectors and to reduce reliance on traditional fragmented energy markets.