What Is the SHANTI Bill? How India’s Nuclear Reform Could Benefit These 3 Stocks

Synopsis: Union Cabinet has approved SHANTI Bill, this allows private participation up to 49 percent. The bill also outlines operator liabilities and facilitates the import and export of nuclear materials and technology. 

On December 12, India passed the SHANTI Bill, marking a landmark shift in the country’s nuclear energy policy by opening the sector to private participation after decades of state monopoly. Here, SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Technology for India. Tabled in the Lok Sabha, the bill proposes amendments to the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, addressing long-standing challenges related to investment uncertainty, liability exposure, and execution risks. It introduces a unified legal and regulatory framework, clearer liability norms, and a dedicated nuclear tribunal to improve dispute resolution and investor confidence.

A key highlight of the SHANTI Bill is the entry of private companies, including those with foreign participation, across the entire nuclear value chain. Private players will be allowed to build, own, operate, and decommission nuclear facilities, with foreign direct investment of up to 49 percent permitted in select nuclear activities. Opportunities span across nuclear power generation, EPC, equipment and component manufacturing, fuel-related services, and technology transfer, all of them aimed at attracting long-term capital and global best practices.

The Bill further permits “the import, export, acquisition, or possession of nuclear fuel or prescribed substances, as well as the import or export of any technology or software that may be used for the development, production, or use of prescribed substances or prescribed equipment,” a Hindustan Times report said.

This reform has been widely viewed as a strong positive policy signal, especially as India has targeted a 100 GW of nuclear power capacity by 2047, in order to support energy security and decarbonisation. While nuclear power costs remain relatively high at around Rs 6 per unit plus fuel, scale, localisation, and private-sector efficiency could moderate costs over time. Overall, the SHANTI Bill strengthens nuclear energy’s role as a stable, low-carbon baseload source and lays the foundation for a more diversified, investment-friendly nuclear power sector, creating opportunities for select private players to emerge as key beneficiaries.

The Key beneficiaries could be as follows

Adani Power

The SHANTI Bill could enable Adani Power to diversify into nuclear generation through private participation and global partnerships. With strong project execution and capital access, Adani Power may leverage nuclear assets to complement its thermal portfolio, supporting long-term baseload capacity and India’s low-carbon power transition.

In the latest quarter the company saw its Sales grow by 0.88 percent YoY, while the profits fell by 11 percent YoY. The company has given a 5 year compounded profit growth of 66 percent, and the stock price for the same period gave a compounded return of 72 percent.

Tanfac Industries

Tanfac Industries could gain from higher demand for nuclear-grade specialty chemicals, including hydrofluoric acid that is used in the nuclear fuel processing by  converting uranium into the gaseous uranium hexafluoride. The SHANTI Bill’s push for private participation and capacity expansion may boost long-term offtake, strengthening Tanfac’s role in India’s domestic nuclear supply chain. For Q2FY26 the company saw its YoY revenue go up by 51 percent, but the YoY profit went down by 11 percent.

MTAR Technologies

MTAR Technologies is well-positioned to benefit from rising orders for precision-engineered components used in nuclear reactors. As private participation expands under the SHANTI Bill, demand for indigenous, high-specification nuclear equipment could increase, and as the company is already in the business of manufacturing the same, this could support MTAR’s growth across energy and strategic manufacturing. Financially, the company saw its YoY revenue go down by 28 percent, and the YoY profits go down by 76 percent for Q2FY26.

Written by Adithya Menon

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post What Is the SHANTI Bill? How India’s Nuclear Reform Could Benefit These 3 Stocks appeared first on Trade Brains.