Nuclear & Insurance overhaul: Centre clears major reform Bills
The major legislative push comes on the heels of the government’s renewed reform drive following a sweeping overhaul of the goods and services tax (GST) regime and notification of labor laws to support the economy amid geoeconomic challenges and 50% tariffs imposed by the US.
The approvals are a significant step forward in previously announced policy changes. The cabinet headed by Prime Minister Narendra Modi has given its nod to the Sustainable Use and Development of Nuclear Energy to Transform India (SHANTI) bill to overcome the strict liability clause that has discouraged foreign investors and ended state monopoly in the sector. These measures are part of a larger push to increase India’s atomic energy capacity to 100 gigawatts by 2047. ET was the first to report on the SHANTI bill on December 12. The government passed the Insurance Laws (Amendment) Bill (2025), paving the way for foreign investment in the insurance sector to increase to 100%, up from 74% currently. It also allows companies to take advantage of a hybrid license to undertake a variety of insurance activities.
According to officials, the Insurance Amendment Bill will be introduced as the omnibus Sabka Bima Sabki Raksha to replace the Life Insurance Companies Act (1956), Insurance Regulatory and Development Authority Act (1999) and the Insurance Act (1938). In another move to consolidate various laws, the cabinet approved the Securities Market Bill, which will replace three existing laws.
Higher Education Regulator
These are the Securities Contracts (Regulation) Act (1956), the Securities and Exchange Board of India Act (1992) and the Depository Institutions Act (1996). The cabinet also approved a bill to set up a higher education regulator to replace bodies like the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE). The proposed law, which was earlier called the Higher Education Commission of India bill, has been called the Viksit Bharat Shiksha Adhikshan bill.
The cabinet also approved a bill to repeal 71 outdated laws on the statute books, officials said, adding that at least one of them dates back to the British colonial period. The free trade agreement (FTA) signed with Oman ahead of Modi’s visit to the country and the Coal Connectivity for Seamless, Efficient and Transparent Utilization or CoalSETU window were also approved. This also applies to the auction of coal linkages for various industrial uses as well as for export, in order to ensure fair access and optimal use of the resource. The government will introduce the Pujya Bapu Gramin Rozgar Guarantee bill to amend the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to guarantee 125 working days to the rural poor from 100 days a year, removing Gandhi from the name of the law.
The cabinet has approved the allocation of Rs 11,700 billion through digital means for the 2027 Census, which will start in April. While aggregate data on caste and other economic parameters will be published, individual data will not be made public in accordance with data protection law.
