India is undertaking a notable recalibration of how it administers civil energy development, particularly in areas historically under the exclusive domain of the Department of Atomic Energy. In early 2026, the Ministry of Power put forward a proposal to bring the development of civilian nuclear projects including those with reactors under international safeguards under its direct oversight. This proposal marks a potential realignment of administrative responsibility as the nation pursues an ambitious long-term strategy for diversified power generation and an accelerated energy transition.
The move is rooted in a desire to streamline decision-making, facilitate broader participation in large power infrastructure, and align planning for low-carbon baseload supply with other electricity sectors. At present, the Department of Atomic Energy reports directly to the Prime Minister’s Office and remains the principal authority on all matters related to core nuclear energy development, safety and compliance. The Power Ministry’s proposal seeks an amendment to the Allocation of Business Rules to widen its mandate and include civil project development within this domain.
The initiative follows the introduction of the Shanti Act 2025, formally titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act. Enacted in December 2025, this legislation represents a structural shift by permitting limited private sector participation under a defined regulatory framework. The act aims to modernize governance for nuclear power development while reinforcing oversight mechanisms. A key outcome of the Shanti Act 2025 is the strengthening of the Atomic Energy Regulatory Board, granting it clearer statutory authority and enhanced supervisory powers.
Policy analysts view this proposed change as part of a broader effort to integrate energy planning across ministries in line with national sustainability objectives. By encouraging investment and reducing administrative fragmentation, the reforms seek to accelerate capacity addition. Currently, nuclear power contributes a small fraction of India’s total electricity generation. The government has outlined plans to significantly increase installed capacity by the early 2030s, with longer-term expansion extending toward mid-century targets.
Despite the push for administrative consolidation, policymakers have emphasized that strategic and safety-critical functions will remain insulated. Fuel management, waste handling, and international obligations will continue under the Department of Atomic Energy. These safeguards, embedded within the Shanti Act 2025, are intended to ensure that commercial expansion does not dilute security or regulatory rigor. The approach reflects a balance between institutional reform and national interest.
Legal reform is further shaped by the Atomic Energy Act, which historically governed all civilian and strategic activities in this sector. Under the Atomic Energy Act, participation was tightly controlled, and regulatory authority was centralized. Ongoing discussions around amendments focus on enabling clearer separation between operator and regulator, updating liability provisions, and creating a framework that supports commercial viability without compromising safety in nuclear power operations.
Tariff determination has emerged as another important dimension of reform. Traditionally, pricing for nuclear electricity involved multiple agencies with limited transparency. Under the new framework proposed alongside the Shanti Act 2025, tariff oversight is expected to remain with the central government but within a more structured and consultative regulatory process. This is intended to enhance investor confidence while maintaining affordability for consumers.
These institutional and legislative changes are unfolding within the wider context of India’s energy transition strategy. The national roadmap emphasizes a diversified low-carbon mix, combining renewable sources with firm baseload capacity to meet rising electricity demand. In this context, nuclear energy is positioned as a stable, low-emission option that complements variable renewable generation. The government’s projections include substantial capacity additions within the next decade as part of its non-fossil fuel commitments.
In operational terms, a significant portion of future capacity is expected to be delivered by public sector entities traditionally overseen by the Department of Atomic Energy, alongside power sector companies aligned with the Ministry of Power. The evolving governance framework is designed to improve coordination, reduce delays, and strengthen project execution. As India expands its civil nuclear program, the alignment between institutional oversight, legislative reform, and long-term energy goals will play a decisive role in shaping the sector’s future.
