The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (Nuclear Energy Act) is a landmark legislation designed to modernize and expand India’s nuclear sector. Once notified, it will overhaul the existing legal framework comprising the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, and enable private sector participation alongside public institutions by allowing non-Government companies or joint ventures to apply for licenses to build, own, and operate nuclear facilities.
Importantly, the Nuclear Energy Act defines civil liability for nuclear damage, outlining compensation mechanisms and operator responsibilities in the event of an incident. Further, it establishes a regulatory structure through the Atomic Energy Regulatory Board (which will serve as the primary oversight body under the new regime) and provides for the creation of specialized forums for adjudicating claims related to nuclear damage. To manage risk, the new law prescribes operator liability limits based on thermal power capacity of the nuclear reactor involved (ranging from INR 1 billion to INR 30 billion), while the Government will assume liability for damages exceeding such amounts (up to the INR equivalent of 300 million Special Drawing Rights).
This note provides a broad overview of the Nuclear Energy Act, including with respect to new opportunities, licensing and compliance obligations, scope of liability, breach, and the potential way ahead.
