Important Developments in Indian Energy Law: The PNG Rules & the SHANTI Bill

India's energy law scenario has had two massive updates in the last two weeks. The Ministry of Petroleum and Natural Gas has come up with a completely new Petroleum and Natural Gas Rules, 2025 ("PNG Rules 2025") replacing the Petroleum and Natural Gas Rules, 1959 ("PNG Rules 1959"). The PNG Rules 1959 defined upstream petroleum law for more than 65 years. With the enactment of the Oilfields (Regulation and Development) Amendment Act, 2025, the Government has thought it fit to come up with the PNG Rules 2025. This is a significant development for energy law in India. 

The second important development is the introduction of the SHANTI Bill 2025. We have been writing about the recent developments in Indian nuclear energy law post the popularity of Small Modular Reactors (SMRs) worldwide. Now, through the introduction of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI Bill 2025), the Government has sought to reform the law on nuclear energy. The Long Title of the Bill reads:

"A BILL to provide for the promotion and development of nuclear energy and ionising radiation for nuclear power generation, application in healthcare, food, water, agriculture, industry, research, environment, innovation in nuclear science and technology, for the welfare of the people of India, and for robust regulatory framework for its safe and secure utilisation and for matters connected therewith or incidental thereto."

Thus, broadly, the objectives of the Bill are to promote and develop nuclear energy and ioning radiation for:

• nuclear power generation, application in healthcare, food, water, agriculture, industry, research, environment, innovation in nuclear science and technology;
• the welfare of the people of India; and
• robust regulatory framework for its safe and secure utilisation.

 The Bill (Clause 91) seeks to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 but save actions made thereunder. 

[AI Image from Google Gemini: Not representative of actual]