US welcomes India’s SHANTI Bill, calls it a 'step towards stronger energy security partnership'

The United States on Monday (Dec 22) welcomes India's new legislation concerning Nuclear energy, the SHANTI Bill 2025, hailing it as an important step in the direction of deepening energy ties and peaceful civil nuclear cooperation between the two countries. The statement came a day after President Draupadi Mumu gave assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, or SHANTI Bill, 2025.

In a post on X, the US Embassy in India said, “We welcome India’s new #SHANTIBill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation. The United States stands ready to undertake joint innovation and R&D in the energy sector.”

The SHANTI Act

Under the SHANTI Act government introduced sweeping reforms in India's civil nuclear architecture, replacing the Atomic Energy Act of 1962, which remains largely intact since its introduction.

One of the landmark shifts presented in the Act is the opening up of the civil nuclear sector for private players for the first time, which was historically run by state-owned enterprises. It also grants a statutory status to the Atomic Energy Regulatory Board, along with the introduction of a well-defined licensing system and proposes a specialised nuclear tribunal to handle disputes.

The Bill specifies that licences may be granted to “any department of the Government of India or any institution or authority or corporation established or owned or controlled by such government, any government company, any other company, a joint venture among any of the aforesaid; or any other person expressly permitted by the central government, by notification.”

India-US nuclear deal

India and the United States announced the historical civil nuclear cooperation initiative nearly two decades ago, culminating in the landmark India–US nuclear deal. The agreement ended India’s long-standing nuclear isolation and allowed it to resume civilian nuclear cooperation, even as it remained outside the Nuclear Non-Proliferation Treaty.

The deal marked a major shift in US policy and reshaped the trajectory of bilateral relations. However, progress remained slow for years due to legal and regulatory hurdles. A breakthrough came in March this year, when the US Department of Energy granted regulatory clearance to an American company to design and build nuclear reactors in India.