Introduction 

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (“SHANETI”) entered into force on December 21, 2025, marking a pivotal shift in India’s nuclear regulatory landscape. This legislation repeals the Atomic Energy Act, 1962 (the “1962 Act”) and replaces all references to “atomic energy” with “nuclear energy.” SHANETI reflects India’s evolving stance on nuclear innovation: no longer viewed solely through the lens of military risk, nuclear energy is now positioned as a tool for sustainable development in power generation, healthcare, agriculture, and beyond.

The preamble of SHANETI underscores this progressive ethos. It aims to promote nuclear energy and ionizing radiation for applications in nuclear power, healthcare, food preservation, water management, agriculture, industry, research, environmental protection, and technological innovation – all for the welfare of the people of India. It also establishes a robust regulatory framework to ensure safe and secure utilization. This contrasts sharply with the 1962 Act’s more restrictive approach, which prioritized control over proliferation.

From a patent perspective, the most transformative elements of SHANETI lie in its treatment of inventions related to nuclear technologies. Section 38 of SHANETI explicitly permits patents for inventions involving the peaceful use of nuclear energy and radiation, subject to safeguards. This reverses the blanket prohibition under Section 20 of the 1962 Act, which barred patents for atomic energy-related inventions in their entirety at the Central Government’s discretion. The new framework opens avenues for R&D, including collaborative research with Indian entities, potentially accelerating filings both in India and abroad.

Definitional Reforms: Clarity for IP Categorization

At the heart of SHANETI lies its expanded definitional framework, designed to enhance clarity and predictability in the conduct of patent examinations. While the 1962 Act defined only 11 terms, SHANETI defines 45, addressing ambiguities that previously complicated IP assessments.

At its core, Section 2(22) of SHANETI defines “nuclear energy” as “energy released from atomic nuclei as a result of any process, including the fission and fusion processes.” It further clarifies that references to nuclear energy production or use encompass preparatory, subsequent, or ancillary processes. Crucially, an explanation deems all prior references to “atomic energy” in laws or instruments as referring to this new definition. This mirrors Section 2(1)(a) of the 1962 Act, which defined “atomic energy”, but adds procedural inclusivity, thereby reducing interpretive disputes in patent specifications.

Terms such as nuclear material, nuclear damage, radioactive waste, source material, and spent fuel have been expressly defined, making it a more comprehensive Act. These definitions eliminate the vagueness that once led to overbroad referrals to the Central Government under the 1962 Act. For instance, inventions tangentially involving uranium (e.g., in ceramics) were routinely scrutinized; now, only direct nuclear applications trigger review.

Patentability Framework: From Prohibition to Conditional Allowance 
Section 38 of SHANETI represents a seismic shift, enabling patents for peaceful nuclear inventions while imposing targeted exclusions. This provision replaces Section 20 of the 1962 Act’s outright ban, fostering innovation in a sector previously deemed “untouchable.”

Under Section 38, patents are grantable for inventions related to the peaceful use of nuclear energy and radiation, provided they do not fall within the non-patentable categories set out in Section 3(5), namely:

• Enrichment or isotopic separation of prescribed or radioactive substances, unless notified otherwise by the Central Government.
• Management of spent fuel, including reprocessing, recycling, radionuclide separation, and high-level radioactive waste.
• Production and isotopic separation-based upgrading of heavy water. \) Other facilities or activities as notified by the Central Government.

Additionally, inventions deemed “sensitive” or with national security implications are non-patentable and attributed to the Central Government as the inventor. Where the Controller harbours doubt about an application’s relation to Section 3(5) activities or security risks, referral to the Central Government is mandatory for guidance.

This framework narrows the referral ambit compared to the 1962 Act, where even minor atomic references prompted scrutiny.

Foreign filing license requirements remain. Applications for first filing abroad must be scrutinized by the Central Government to ensure that no nuclear-related disclosures compromise security. The Central Government also retains inspection powers over pending applications, with authority to direct refusal if non-peaceful uses are suspected. However, a key liberalization is the removal of the finality clause of Section 20(8) of 1962 Act, thereby allowing an applicant to challenge the decisions rendered by the Central Government.

Integration with the Patents Act: Amendments and Procedural Safeguards 
SHANETI necessitates amendments to the Patents Act, 1970, notably deleting Section 4 (secrecy provisions for atomic energy inventions) and integrating nuclear energy specific rules. Section 38 of SHANETI now governs, allowing patent applications for peaceful use of nuclear energy. Procedurally, the Controller’s referral mechanism for doubtful cases remains, but its scope is confined to explicit Section 3(5) activities or security concerns. This creates a “wider space for allowance,” encouraging filings in ancillary nuclear technology.

SHANETI introduces a multi-tiered review and appeal mechanisms under Sections 48-52, with respect to decisions of the Central Government:

• Section 48(1): Aggrieved parties may seek review by the Atomic Energy Redressal Advisory Council.
• Section 51: Appeals from the Council decisions lie before the Appellate Tribunal for Electricity (under Section 110 of the Electricity Act, 2003), designated as the appellate body under SHANETI(Section 49). Filings must occur within 30 days.
• Section 52: Appeals to the Supreme Court are permissible within 60 days of the Tribunal’s order.

In light of these provisions, the Patents Act necessitates amendment to ensure consistency and harmonization with SHANETI.