The government’s push to expand nuclear power through the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act is a major step towards addressing concerns of intermittency and energy security in India’s clean energy transition, the Economic Survey 2025–26 said on Thursday. 

Nuclear power capacity

Tabled in Parliament, the survey said India currently has an installed nuclear power capacity of over 8.7 gigawatts (GW), even as the country works towards building a cleaner and more reliable energy mix. It underlined that nuclear energy is among the cleanest sources of power and can overcome the intermittency challenges associated with renewables such as solar and wind. 

“Nuclear is one of the cleanest forms of energy, capable of overcoming the concerns of intermittency and energy security associated with other renewable sources of energy like solar and wind power,” the pre-Budget document said. 

The survey noted that nuclear power can also provide dependable energy for heavy industries that face technological limitations in adopting renewables. In addition, nuclear energy can support the production of hydrogen for use in transport and industrial processes. 

Nuclear Energy Mission

To accelerate capacity addition, the government announced a Nuclear Energy Mission in the Union Budget 2025–26, allocating ₹20,000 crore to develop at least five indigenously designed and operational small modular reactors by 2033. 

As part of this push, India enacted the SHANTI Act in December 2025. The Act consolidates and amends key legislations, including the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, to open the sector to private companies and state governments—participation that was earlier restricted. 

New framework

The new framework also introduces a graded liability structure under the CLNDA without diluting compensation for victims, addressing a long-standing concern for potential investors. It enables private participation across plant operations, power generation, equipment manufacturing, and research and innovation in the peaceful use of atomic energy. 

The Economic Survey added that a credible and orderly transition away from fossil fuels will depend on the timely availability of reliable non-fossil energy sources such as nuclear power, alongside a clearly defined pathway for peak emissions.