GS3Science & Technology·19 Jun 2026·4 min read

India's President signs SHANTI Act, paving way for private investment in SMRs

On June 19, 2026, the Indian President gave assent to the SHANTI Act, authorizing private companies to build and operate small modular reactors. The move marks a shift from the traditionally state‑run nuclear sector toward a mixed‑ownership model, aiming to accelerate the country's SMR rollout and attract foreign capital. The government targets 10 GW of SMR capacity by 2035, with private players now eligible to contribute up to 30% of that goal.

•India's Nuclear Regulator Holds SMR Safety Standards Steady Amid Private Push

India's Nuclear Regulator Holds SMR Safety Standards Steady Amid Private Push

The Atomic Energy Regulatory Board (AERB) has announced that the licensing and safety regime for Small Modular Reactors (SMRs) will mirror that of India’s large‑scale reactors. The decision comes as the SHANTI Act, which received presidential assent on 21 December 2025, paves the way for private firms to set up nuclear facilities. By insisting on identical safety checks, the regulator aims to curb the inexperience of new entrants while the country courts foreign expertise to build a domestic SMR ecosystem.

SMRs are compact nuclear power units, typically under 300 MW(e), designed for factory fabrication and rapid deployment. Their reduced size promises lower upfront capital, modular scalability, and the ability to serve remote grids or industrial clusters.

▸A typical SMR can be installed in a footprint comparable to a large warehouse.
▸Factory‑built modules shorten construction time to 2–3 years, versus a decade for conventional reactors.
▸Many designs rely on passive safety systems that shut down automatically without external power.

The technology is attracting global interest as nations chase carbon‑free baseload capacity while avoiding the massive financial risk of gigawatt‑scale plants.

Regulatory Stance on SMRs

The AERB’s statement underscores that the same rigorous safety and licensing requirements applicable to India’s existing reactors will govern SMRs. This uniformity is intended to safeguard public health and maintain international credibility, especially under the oversight of the International Atomic Energy Agency.

▸The regulator will assess design, siting, and emergency preparedness using the same criteria as for large reactors.
▸Licensing will require a safety authorisation from the AERB before any construction can commence.
▸Design support from foreign or domestic technology providers is a precondition for licence approval.

By applying an unchanged framework, the board signals that nuclear safety is non‑negotiable, irrespective of reactor size.

Did You Know? The first commercial SMR worldwide, the NuScale Power module, began operation in the United States in 2025, delivering 77 MW per unit—far less than a typical Indian PHWR but enough to power a small town.

Policy Landscape: SHANTI Act and Private Participation

The SHANTI Act (2025) authorises private sector involvement in nuclear projects, a departure from the historically state‑dominated model. The act allows firms to obtain licences for construction, operation, and waste management, subject to AERB safety clearance.

▸The act came into force after President Droupadi Murmu’s assent on 21 December 2025.
▸It creates a licensing pathway for private entities, provided they secure design support from approved technology providers.
▸The legislation also mandates compliance with the existing nuclear liability framework.

This legislative shift aims to attract capital and accelerate the rollout of advanced nuclear technologies, including SMRs.

India’s Nuclear Heritage and Technology Base

India’s nuclear programme has long been anchored by the Pressurised Heavy Water Reactor (PHWR) fleet, built by the Nuclear Power Corporation of India (NPCIL). PHWRs use heavy water as coolant and moderator and run on natural uranium, eliminating the need for enrichment.

▸The PHWR design was pioneered in the 1960s and now supplies over 60 percent of India’s nuclear capacity.
▸Heavy water reactors can be refuelled online, offering operational flexibility.
▸Domestic fuel cycles rely on indigenous uranium mining and conversion facilities.

While the PHWR legacy provides a solid foundation, SMRs represent a technological departure that could diversify fuel options, including high‑assay low‑enriched uranium (HALEU) and thorium‑based concepts.

Strategic Implications and Way Forward

Maintaining a uniform safety regime for SMRs sends a clear message to international partners: India will not compromise on nuclear security even as it opens the sector to private capital. This stance is crucial amid global “semiconductor wars” and the race for critical minerals, where nuclear energy is viewed as a strategic enabler for high‑tech manufacturing.

▸Consistent licensing reduces regulatory uncertainty, encouraging foreign investors to commit capital and expertise.
▸A robust safety framework enhances India’s standing in multilateral nuclear forums, facilitating technology transfer agreements.
▸The private‑sector entry could spur domestic supply chains for components such as pressure vessels and control systems, creating high‑skill jobs.

However, the nascent SMR ecosystem faces challenges: limited domestic experience, the need for a skilled workforce, and the requirement to harmonise safety standards with evolving international guidelines. Addressing these gaps will demand coordinated action between the Ministry of Atomic Energy, research institutions, and industry players.