India’s proposed rules for implementing the SHANTI nuclear energy framework seek to establish strict conditions for the use of foreign reactor technology, requiring overseas designs to meet regulatory approval requirements and demonstrate operational experience before they can be deployed in the country.

The draft framework is part of the government’s wider effort to expand nuclear power generation by allowing greater private-sector participation and facilitating access to proven international technologies. At the same time, the proposed rules emphasise that opening the sector will not mean easing safety and regulatory requirements.

Under the draft provisions, developers seeking to use foreign nuclear technology would have to provide details of the technology’s regulatory approvals and operating experience in its country of origin. Technology providers would also be expected to ensure that appropriate design support, permissions and technical documentation from the original developer are available.

The emphasis on established operating experience is significant because nuclear reactor projects involve complex technologies and long operating lifetimes. Regulatory authorities need sufficient information about a reactor’s design, safety performance and operating history before allowing it to be introduced into a new jurisdiction.

Foreign reactor designs to face approval requirements

The proposed rules establish a framework under which foreign nuclear technologies cannot be introduced into India solely through commercial agreements between project developers and overseas suppliers.

A foreign reactor design would have to satisfy Indian regulatory requirements and demonstrate that it has an established operating record. Developers would be required to submit relevant licensing information and details of operational experience from the technology’s home country.

This approach is intended to reduce uncertainty associated with technologies that may not yet have sufficient real-world operating experience.

For India, the requirement could also help regulators assess whether a foreign reactor design has performed as expected under actual operating conditions. Information on previous regulatory approvals, safety performance and operational history could become an important part of the assessment process.

Technical support from original developers

The proposed framework also places importance on continued technical support from the original technology developer.

Foreign nuclear technology is not limited to the physical reactor or its basic design. Successful construction and operation require extensive technical documentation, engineering information, safety assessments, design specifications and specialist support.

The draft provisions therefore seek to ensure that such information and support remain available to Indian developers and regulators.

This could be particularly important for projects involving overseas reactor designs because a lack of access to original design information could complicate construction, maintenance, safety assessments or modifications during the reactor’s operating life.

The availability of technical documentation could also help Indian regulators independently evaluate whether the proposed technology complies with domestic safety requirements.

In-principle approval could provide an early regulatory pathway

Another important element of the proposed framework is the possibility of obtaining an in-principle approval before a developer finalises all aspects of a nuclear project.

Such an approval could provide greater certainty to companies during the early stages of project development. Developers could use this stage to engage with reactor technology suppliers, pursue land and infrastructure arrangements and undertake other preparatory activities.

The mechanism could be particularly relevant for private companies that are considering entering the nuclear power sector for the first time.

However, in-principle approval would not mean that a project could immediately proceed to construction or operation. Further regulatory clearances would still be required as the project moved through successive stages.

Stage-by-stage regulatory oversight

The proposed system envisages regulatory scrutiny throughout the lifecycle of a nuclear project.

This includes examination of the reactor design, site, construction, commissioning and eventual operation. Regulatory authorities would retain powers to monitor compliance and intervene if a project failed to satisfy prescribed requirements.

Such a staged system reflects the high safety standards associated with nuclear power generation.

Unlike many conventional infrastructure projects, nuclear facilities require continuous regulatory oversight because safety risks can arise at different stages, from design and construction to fuel handling, operation, maintenance and decommissioning.

The proposed framework therefore seeks to combine faster project development with continued regulatory supervision.

Private sector participation expands under SHANTI framework

The draft rules are part of a major policy shift in India’s nuclear energy sector.

The SHANTI Act created a framework for allowing private companies to participate in selected nuclear activities while retaining government control over sensitive areas of the nuclear fuel cycle and strategic functions.

The objective is to bring additional investment, technology, engineering expertise and industrial capacity into the nuclear sector.

For decades, India’s nuclear power industry was dominated by government institutions. The new framework is intended to broaden participation without compromising nuclear safety, security or strategic oversight.

The proposed rules could therefore become an important mechanism for translating the legislation into practical opportunities for private companies and international technology providers.

Nuclear power expansion remains a major government priority

The regulatory changes come as India seeks a substantial expansion of nuclear generation.

The government has set an ambition of reaching around 100 GW of nuclear power capacity by 2047. Nuclear energy is expected to play a larger role in meeting rising electricity demand while supporting India’s long-term efforts to reduce the carbon intensity of its energy system.

India currently relies heavily on coal for electricity generation, while renewable energy capacity has expanded rapidly. Nuclear power is viewed as an important source of dependable electricity that can operate continuously and complement variable renewable sources such as solar and wind.

Achieving a much larger nuclear fleet, however, would require significant investment and access to additional reactor technologies.

The opening of the sector to private participants and proven foreign technology is therefore intended to support faster expansion.

Opportunities for international nuclear companies

The proposed rules could also increase opportunities for overseas reactor manufacturers and technology companies.

International nuclear companies have long viewed India as a potentially important market because of its large electricity requirements and long-term nuclear expansion plans. However, regulatory restrictions and liability concerns have historically complicated the development of large foreign-backed nuclear projects in the country.

The SHANTI framework seeks to create a more structured environment for international participation.

Foreign technology suppliers would nevertheless have to comply with India’s regulatory framework. Their ability to enter the market would depend not only on commercial arrangements but also on regulatory approval, demonstrated operational experience and the availability of appropriate technical support.

This could favour established reactor technologies with substantial operating histories.

Financial and liability obligations remain important

The proposed regulatory framework also places responsibilities on nuclear developers relating to financial security, nuclear liability, decommissioning and radioactive waste management.

Nuclear projects require planning for costs that extend well beyond the construction period. Operators must account for eventual plant shutdown and decommissioning, as well as the safe management and disposal of radioactive waste.

The draft framework therefore seeks to ensure that developers have appropriate financial arrangements in place for these long-term obligations.

This is particularly relevant as private companies enter the nuclear sector. Investors and operators will need to understand not only the potential returns from nuclear generation but also the financial responsibilities associated with operating and eventually closing a nuclear facility.

Captive nuclear power also receives attention

The draft framework is broader than conventional grid-connected nuclear power plants.

It also recognises the potential role of captive nuclear generation, including electricity supplied directly to energy-intensive industries.

Industries such as aluminium and cement, along with emerging high-demand sectors such as semiconductor manufacturing, data centres and artificial intelligence-related infrastructure, require large quantities of reliable electricity.

Captive nuclear generation could potentially provide such industries with a stable source of power while reducing dependence on conventional fossil-fuel generation.

The inclusion of these applications reflects the government’s broader attempt to integrate nuclear energy into India’s industrial and technological development.

Safety remains a central consideration

Despite the proposed opening of the sector, nuclear safety remains at the centre of the regulatory framework.

The Atomic Energy Regulatory Board is expected to play a key role in granting approvals and overseeing compliance with safety requirements.

The draft regulations cover a wide range of issues relating to nuclear and radiation safety, including approvals, radiation protection, radioactive materials and other regulated activities.

The regulatory approach reflects the principle that private participation must operate within a tightly controlled safety environment.

Developers would therefore face continuing inspection, reporting and compliance requirements rather than receiving unrestricted operational freedom after obtaining an initial licence.

Public consultation before final rules

The draft SHANTI rules and regulations are currently part of a consultation process and are not yet the final framework.

Stakeholders have been invited to submit their comments and suggestions on the proposed provisions. The consultation process provides an opportunity for industry representatives, technology companies, experts and other interested parties to raise concerns or suggest modifications.

The deadline for submitting views is September 4, 2026.

The final regulations could therefore differ from the current draft depending on the feedback received during the consultation process.

A new phase for India’s nuclear sector

The proposed SHANTI rules mark a significant stage in India’s effort to transform its nuclear power industry.

The framework seeks to achieve several objectives simultaneously: attract private investment, facilitate access to established foreign technologies, accelerate project development and maintain strict government and regulatory oversight.

For foreign technology providers, the message is clear: access to the Indian nuclear market will be linked to regulatory approval, proven operating experience and continued technical support.

For Indian companies, the rules could provide a clearer route into a sector that has historically been dominated by state institutions.

The success of the framework will ultimately depend on whether India can balance the need for rapid nuclear expansion with the stringent safety, financial and regulatory requirements that nuclear power demands.

As India moves towards its long-term target of significantly increasing nuclear capacity, the final SHANTI rules are likely to play a crucial role in determining how quickly private companies and international technology providers can participate in the country’s nuclear energy programme.