India’s plan to expand nuclear power is entering a critical regulatory phase, with draft rules under the SHANTI framework imposing additional conditions on foreign-designed reactors and leaving several commercial questions unresolved.
The timing matters. The Department of Atomic Energy is accepting public feedback on the draft SHANTI Rules and Regulations until 8:00 PM on September 4, 2026. The final rules will help determine how quickly private developers and foreign technology providers can participate in India’s nuclear expansion.
What the draft rules require for foreign reactor technology
Under the draft framework, a foreign reactor design would need to be certified or approved by the nuclear regulatory authority in its country of origin and must already be operational either in that country or another foreign country. The technology would also require approval from India’s nuclear regulator before construction can proceed.
Those conditions are designed around safety and regulatory confidence. The government has said the framework is intended to ensure that reactor technologies entering India have already undergone meaningful regulatory scrutiny and demonstrated operational safety.
But industry groups and advisers argue that the same requirements could disadvantage newer technologies, especially small modular reactors (SMRs), because many designs are still moving through regulatory approval or early deployment around the world.
Why September 4 matters
The consultation is not a final decision. The Department of Atomic Energy has explicitly invited stakeholders, institutions, experts and members of the public to submit suggestions. Feedback received by 8:00 PM on September 4 will be considered while the rules and regulations are finalised.
That makes this more than an industry dispute. The consultation could influence the practical rules governing a newly opened part of India’s nuclear sector.
India’s 100-GW ambition depends on implementation
India has set a long-term objective of reaching 100 GW of nuclear capacity by 2047. NPCIL currently operates 24 commercial nuclear reactors with an installed capacity of 8,780 MW, excluding Rajasthan Atomic Power Station Unit 1, while additional reactors are under construction and development.
The scale of the planned expansion means India will need a combination of domestic manufacturing, capital, skilled manpower, supply chains and reactor technologies. Foreign companies have shown interest in the emerging market, but investment decisions depend on the final regulatory and commercial framework.
The unresolved commercial questions
Industry concerns go beyond technology eligibility. Recent reporting has highlighted questions about nuclear-power tariffs, foreign investment rules, project economics, qualification requirements and the timing of design approvals.
These details matter because nuclear projects require very large upfront investments and long operating lives. A technically permitted project can still struggle to attract capital if developers cannot reasonably estimate tariffs, returns, financing conditions and regulatory timelines.
SMRs face a particular test
SMRs are being promoted globally because their smaller size and modular construction could potentially reduce project scale and make deployment more flexible. India has also identified them as an important part of its future nuclear strategy.
The problem is timing. If the final rules effectively require a foreign design to have an established operating history before it can be deployed in India, some newer SMR technologies could be excluded until they mature elsewhere. That could reduce the number of technologies available to Indian developers, even while improving the regulatory assurance around technologies that do qualify.
Safety versus speed is the real policy choice
The central question is not simply whether India should accept foreign reactor technology. It is how the country can maintain a high safety threshold without creating a process so slow or restrictive that promising technologies and private capital stay outside the market.
India’s nuclear regulator and the Department of Atomic Energy have to balance those objectives. A credible system needs rigorous safety review, but investors also need predictable procedures and clear timelines.
What happens next
- Stakeholders can submit feedback on the draft SHANTI Rules and Regulations by 8:00 PM on September 4, 2026.
- The Department of Atomic Energy will consider the submissions before finalising the framework.
- Private developers and foreign technology companies will be watching the final eligibility and approval conditions closely.
- The treatment of newer reactor designs, including SMRs, could determine how diverse India’s future nuclear technology mix becomes.
TruthWave analysis
India’s nuclear opening is potentially one of the country’s most consequential energy-policy changes in decades. The draft rules show that opening the sector is only the first step. The harder task is building a regulatory system that is simultaneously safe, investable and technologically open.
The September 4 consultation deadline therefore deserves attention. The final rulebook, rather than the political announcement of nuclear-sector reform, will determine how much private capital and foreign technology can actually enter India’s nuclear build-out.
Sources: Department of Atomic Energy public consultation; Reuters reporting; NPCIL overview.
