3 Stocks to Watch as Lok Sabha Approves the SHANTI Nuclear Bill

The Lok Sabha on Wednesday gave its nod to the nuclear energy bill called the "Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill (SHANTI), 2025".

The Bill opens the sector to private participation after decades of tight regulation.

Key Points from the SHANTI Bill:

• Ends government monopoly by allowing private sector participation in nuclear power.
• Expands private role across fuel cycle, manufacturing, and power generation.
• Introduces stronger safety regulation and a unified legal framework.
• Proposes liability reforms and a dedicated nuclear tribunal.
• Allows up to 49% FDI in select nuclear activities.
• Aims to help India reach 100 GW nuclear capacity by 2047.

What adds further momentum is the government's announcement of a Nuclear Energy Mission with an outlay of Rs 200 bn, aimed at boosting research and development of small modular reactors (SMRs). Under this initiative, five indigenously developed SMRs are targeted to be operational by 2033.

With policy momentum building and the nuclear value chain opening up to private participation, the sector is entering a new phase of growth. Against this backdrop, here are key stocks to watch out for.

#1 Larsen & Toubro (Nuclear Power EPC)

First on the list is L&T.

Larsen & Toubro is a key EPC player in India's nuclear power sector.

The company undertakes civil construction works for nuclear power plants and has deep expertise in building pressurised heavy water reactors (PHWRs), light water reactors (LWRs), and natural draft cooling towers (NDCTs).

Apart from this, L&T is also among the few Indian firms selected for the transfer of small modular reactor technology from the US, enabling it to participate in the development and commercialisation of SMRs as India expands its nuclear capacity in the coming years.

SMRs are fission reactors that are physically a fraction of the size of a conventional nuclear power reactor with a generation capacity ranging from less than 30 MWe (Megawatt electrical) to 300+ MWe, providing a flexible, scalable, and cost-effective alternative to conventional large nuclear reactors.

Further in September 2025, L&T bagged order worth up Rs 25 billion (bn) from Nuclear Power Corporation (NPCIL) for the Kudankulam power project in Tamil Nadu.

The order was won by the Heavy Civil Infrastructure (HCI) vertical of L&T for 2x1000 Mwe Kudankulam Nuclear Power Project (KKNPP 5 & 6) which would involve installation of the reactor and turbine systems, sea water systems, and other related equipment.

With the SHANTI Bill opening the civil nuclear sector to private participation, L&T is well positioned to benefit from increased project opportunities across the nuclear value chain.

On the financial front, over the past five years the company's revenue has seen a growth of 12%, meanwhile, net profit grew at a CAGR of 11.7%.

The company's five-year average ROE and ROCE stand at 13.9% and 18.2%.

L&T's Financial Snapshot (FY21-25)

Source: Equitymaster

Going forward, L&T is expected to bolster its nuclear EPC opportunity pipeline under the Viksit Bharat initiative.

#2 NTPC (Nuclear JV)

Next on the list is NTPC.

NTPC has made a significant entry into the nuclear power sector with the operationalisation of the ASHVINI joint venture with Nuclear Power Corporation of India Limited (NPCIL) and the creation of its subsidiary, NTPC Parmanu Urja Nigam Ltd, reinforcing its commitment to clean baseload power.

In September 2025, the Prime Minister laid the foundation stone for the 2800 MWe Mahi Banswara Rajasthan Atomic Power Project (MBRAPP) in Rajasthan, marking a key milestone for NTPC in nuclear energy.

The project, is a joint venture with NPCIL in which NTPC holds a 49% stake. It will feature four indigenous 700 MWe pressurised heavy water reactors (PHWRs) and is expected to be among the largest nuclear plants in India, providing reliable base load energy while strengthening the country's position in advanced nuclear technology.

Alongside large-scale projects like MBRAPP, NTPC is also exploring small modular reactors and other nuclear partnerships.

The recent SHANTI Bill will support NTPC's nuclear ambitions by modernising India's nuclear energy framework and opening the sector to broader participation, encouraging investment and innovation.

On the financial front, over the past five years the company's revenue has seen a growth of 11.5%, meanwhile, net profit grew at a CAGR of 15%.

The company's five-year average ROE and ROCE stand at 12.5% and 10.5%.

NTPC's Financial Snapshot (FY21-25)

Source: Equitymaster

Going forward, NTPC, through its joint venture with NPCIL (Anushakti Vidhyut Nigam Ltd.) and its wholly owned subsidiary NTPC Parmanu Urja Nigam Ltd., aims to achieve up to 30 GW of nuclear capacity by 2047.

#3 GE Vernova T&D India (Nuclear Technology & Services)

Next on the list is GE Vernova.

GE Vernova, through the GE Vernova Hitachi Nuclear Energy alliance, is a world-leading provider of advanced reactors, nuclear fuel, and related services.

The company was formed as a strategic partnership between General Electric (now GE Vernova) and Hitachi, combining decades of expertise in nuclear technology.

With a history dating back to 1955, when General Electric established its atomic power equipment department, the company has focused on boiling water reactors (BWRs) since the 1960s and contributed to several first-of-a-kind (FOAK) plants.

Its capabilities span the entire nuclear plant lifecycle, including refuelling outages, non-destructive examinations, and MW capacity uprates.

The company also supports plant life extensions, digital instrumentation and control systems, and supplies electrical, electronic, and mechanical components, including safety-related dedication.

Its expertise extends to control rod blade and drive manufacturing, reactor internal repairs, replacements, and modifications, along with water chemistry solutions.

In addition, it engages closely with operators through the BWR Owners' Group (BWROG) and provides advanced virtual reality and full-scale training facilities to enhance operational safety and efficiency.

Today, GVH offers comprehensive services for operating plants worldwide, including modifications, uprates, outage management, and inspection services, supporting safe and efficient long-term plant operations.

The recent SHANTI Bill will bolster company's position in nuclear power space.

Over the past five years the company has seen growth. Its revenue has jumped at a CAGR of 6.3%. Meanwhile, net profit increased sharply from Rs 603 m in FY21 to Rs 6,083 m in FY25.

The company's five-year average ROE and ROCE stand at 10.8% and 19%.

GE Vernova T&D India's Financial Snapshot (FY21-25)

Source: Equitymaster

Going forward, GVH plans to focus on supporting the nuclear sector's transition by enabling plant life extensions, MW capacity increases, and performance-enhancing upgrades, in line with the growing role of nuclear energy in a carbon-neutral future.

Other Stocks to Watch

Apart from the three companies mentioned in the article, a few other stocks are also worth watching amid the SHANTI Bill.

BHEL could benefit from rising demand for nuclear steam generators, turbines, and balance-of-plant equipment as capacity scales up.

MTAR Technologies stands out for its precision engineering capabilities and established presence in nuclear and clean-energy components.

Walchandnagar Industries may gain from increased orders for nuclear-grade forgings and reactor components.

Conclusion

India's nuclear capacity currently stands at around 8.8 GW, far below the 100 GW target set for 2047, underscoring the need for large-scale capital infusion and structural reform.

At the same time, global collaborations with nuclear majors are improving access to advanced technologies and fuel-cycle support.

In this context, the SHANTI Bill acts as a key catalyst by addressing long-standing barriers related to liability, participation, and financing. Supported by a twin push toward advanced reactors and thorium-based technologies, the evolving policy framework is expected to strengthen India's nuclear ecosystem and create opportunities across engineering, utilities, capital goods, insurance, and long-duration finance over the long term.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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