India's SHANTI Act Draft Rules Establish Single Licence Regime and Technology Criteria

Draft rules under India's SHANTI Act establish a single composite licence regime covering construction, ownership, operation, and decommissioning of nuclear power plants. The framework opens the sector to private developers and foreign technology, subject to specified conditions. Private applicants must maintain mandatory insurance coverage and financial security extending through decommissioning and waste management phases.

Foreign reactor designs are permitted only if operational and certified by regulatory authorities in their country of origin or other recognized nations. Eligibility is restricted to countries demonstrating self-reliance in nuclear reactor design and supply chain ecosystems with globally trusted regulatory approvals. Imported or domestically acquired technology must not adversely affect national interests. The Department of Atomic Energy opened the draft rules for public comment through September 4.

  • Single composite licence for all plant lifecycle stages
  • Mandatory insurance and financial security requirements for private operators
  • Foreign technology restricted to self-reliant nations with certified designs
  • Public consultation period extended through early September

Government shifts to producer price index for contract escalations

The Department of Expenditure has instructed ministries and departments to transition from Wholesale Price Index (WPI) to Producer Price Index (PPI) for price escalation clauses in government contracts. The shift aligns with international practice and International Monetary Fund recommendations for measuring inflation at the producer level rather than wholesale level.

Price escalation clauses allow contract payments to adjust based on changes in material, labour, and fuel costs during project execution, distributing inflation impacts between government and contractors. The commerce ministry began issuing monthly PPI data in June for both goods and services, with manufactured items representing 69.93 percent of output PPI, followed by agriculture, forestry, and fishing at 22.16 percent.

  • PPI adoption encouraged for all future government procurement contracts
  • Seven service sectors initially covered in Service PPI phase, with remaining sectors to follow
  • Transition supports phasing out wholesale price inflation metrics over five years

India targets five new reactor startups this decade

India plans to operationalize five new nuclear reactors during the current decade as part of a broader energy security strategy, with a target of 100 GW of nuclear power capacity. The SHANTI Act, passed in Parliament, provides the legislative framework for advancing these ambitions.

The Prototype Fast Breeder Reactor at Kalpakkam, Tamil Nadu, achieved criticality this year, marking progress in domestic reactor technology. Government policy emphasizes reducing dependence on imported energy and strengthening self-reliant nuclear capabilities.

  • Five new reactor startups targeted for the decade
  • 100 GW nuclear capacity goal
  • SHANTI Act framework enacted
  • Prototype Fast Breeder Reactor operational

Energy security context

India imports approximately 90 percent of crude oil and half of natural gas requirements, creating vulnerability to external supply disruptions. The nuclear expansion complements diversification efforts across energy sources, including expanded liquefied natural gas sourcing and deepwater oil and gas exploration.

  • Crude oil sourced from 41 countries
  • LNG imported from 15 countries
  • Solar capacity increased to 160 GW
  • Piped cooking gas coverage expanded to 700 cities