Will India’s small nuclear reactor ambitions take wing in 2026? BSRs, private participation, SHANTI Bill: What you should know

India is aiming to set up new small nuclear reactors as the South Asian nation moves towards energy self-sufficiency. As part of its decarbonisation push, India aims to achieve net-zero emissions by 2070 while reducing pollution and strengthening energy security. India is actively pursuing small nuclear reactors, including small modular reactors (SMRs), as part of this transition. A key element of this strategy is the development of 220 MWe Pressurised Heavy Water Reactor (PHWR)–based Bharat Small Reactors (BSRs), outlined as part of an ambitious plan linked to the SHANTI Bill passed in December. A major shift is the involvement of private players in India’s nuclear energy sector, opening up what is projected to be a $214 billion market. Here is everything you need to know.

What are Bharat Small Reactors (BSRs)?

Bharat Small Reactors are small nuclear reactors whose designs are based on proven 220 MWe PHWR technology developed in India since the 1980s. These reactors can be deployed in remote areas and at industrial sites, replacing coal-fired power units.

The reactors are aligned with the Viksit Bharat (Developed India) 2047 framework of Prime Minister Narendra Modi’s government. BSRs were first announced in August 2023, with the government allocating funds for their development.

The design stage for a small modular nuclear reactor was completed by March 2025. Initial sites for BSRs include Maharashtra and Andhra Pradesh.

Private participation in developing India's small nuclear reactors

The most significant aspect of the BSR programme is that, unlike in the past, the government is involving private players.

The Nuclear Power Corporation of India Limited (NPCIL) issued a Request for Proposals (RFP) in December 2024 for the deployment of 220 MWe PHWR-based BSRs. The RFP seeks “visionary Indian industries” to finance, site, and build twin-unit reactors, primarily for captive power use in energy-intensive sectors such as steel, aluminium, and chemicals.

The tender is open to Indian companies or consortia with demonstrated financial and technical capability. Criteria include environmental clearances and a commitment to funding construction.

NPCIL will provide reactor design, engineering, safety oversight, and operations under a build-own-operate model. Along with the Department of Atomic Energy, NPCIL will also handle fuel supply and waste management.

The original deadline of March 31, 2025 was extended several times and is now March 31, 2026, to broaden participation.

At least six major companies have expressed interest, including Reliance Industries, Adani Power, Tata Power, Jindal Steel & Power, JSW Energy, and Hindalco Industries.Industry players have already proposed five sites in Gujarat, four in Madhya Pradesh, three in Odisha, two in Andhra Pradesh, and one each in Jharkhand and Chhattisgarh.

What is the SHANTI Bill 2025?

The SHANTI Bill, short for the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, is a landmark reform passed on December 15. It repeals the Atomic Energy Act of 1962, which had restricted nuclear activities to government entities.

It also repeals the Civil Liability for Nuclear Damage Act, 2010, to create a consolidated and modern regulatory framework.

Restrictions on private participation had long hindered the growth of India’s nuclear sector, even as the country targets 100 GWe of installed nuclear capacity by 2047.

The SHANTI Bill aims to promote sustainable nuclear energy, enhance safety, and attract private and foreign investment for clean energy and energy security.

It allows Indian companies, government-private joint ventures, or authorised entities to obtain licences for building, owning, operating, and decommissioning nuclear plants. Foreign-incorporated firms are excluded.

The bill is limited to non-sensitive activities such as power generation and equipment manufacturing, while core fuel cycle activities remain restricted.

Liability framework and regulation under SHANTI Bill

The bill maintains no-fault liability for operators with mandatory insurance and introduces tiered liability caps. It removes automatic operator recourse against suppliers for defects.

The overall accident liability ceiling is set at 300 million Special Drawing Rights, aligning with global norms.

The bill grants statutory status to the Atomic Energy Regulatory Board and establishes the Atomic Energy Redressal Advisory Council for appeals, with further recourse to the Appellate Tribunal for Electricity.

Controversy over the SHANTI Bill

The SHANTI Bill has faced criticism over allegedly lax provisions, particularly the removal of supplier liability, which critics argue favours foreign vendors and weakens accountability in the event of accidents. Proponents of the bill counter that it modernises the sector, boosts innovation, attracts investment, and creates jobs.

India’s nuclear energy future

India aims to reach 100 GWe of nuclear capacity by 2047, which would meet nearly 10 per cent of its projected electricity demand. Interim targets include 22.5 GWe by 2031.

The Nuclear Energy Mission, announced in February 2025, plans to have at least five Indian-designed SMRs operational by 2033, primarily utilising India’s three-stage thorium fuel cycle with an emphasis on domestic resources.

India is also aiming to partner with France and the US for advanced SMR technologies.