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SHANTI Act: US calls it ‘step towards stronger energy security partnership’ — why it matters

SHANTI Act: US calls it 'step towards stronger energy security partnership' — why it matters

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NEW DELHI: United States on Monday welcomed India’s newly passed SHANTI bill, calling it an important step towards stronger energy ties and peaceful civil nuclear cooperation between the two countries.In a post on X, the US embassy in India said it saw the bill as a move that supports energy security and opened the door for closer collaboration. “We welcome India’s new Shanti bill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation,” the embassy said. It added that Washington was ready to work with India on joint innovation and research and development in the energy sector. The statement came a day after president signed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, or SHANTI Bill, 2025, marking a major change in India’s civil nuclear framework.The bill was passed by voice vote during the winter session of parliament, even as most opposition members staged a walkout.

India–US civil nuclear cooperation

India and the United States announced a civil nuclear cooperation initiative nearly two decades ago, leading to the landmark India–US nuclear deal. The agreement ended India’s long period of nuclear isolation and allowed it to resume civil nuclear cooperation, even as it remained outside the nuclear non-proliferation treaty.The deal marked a major shift in US policy and significantly changed the trajectory of bilateral relations. Despite the agreement, progress was slow for years due to legal and regulatory hurdles. A breakthrough happened this year in March when the US department of energy granted regulatory clearance to an American company to design and build nuclear reactors in India.

What is SHANTI Act

The SHANTI Act overhauls India’s civil nuclear regime, which has largely remained unchanged since the Atomic Energy Act of 1962. A key feature of the Act is the opening up of parts of the civil nuclear sector to private participation for the first time. The Act also gives statutory status to the Atomic Energy Regulatory Board. In addition, it introduces a clear licensing regime and sets up a specialised nuclear tribunal to handle disputes.Another major change under the SHANTI Act relates to civil nuclear liability. The legislation removes the clause that held suppliers of nuclear equipment liable for nuclear damage.

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