SHANTI Act 2025 Enhances Intellectual Property Framework to Drive Innovation in India’s Nuclear Energy Sector

The Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025 represents a significant overhaul of India’s nuclear energy legislation, replacing the outdated laws from 1962 and 2010. This new statute aims to stimulate private and foreign investment in nuclear power generation, strengthen regulatory oversight through the Atomic Energy Regulatory Board (AERB), and recalibrate liability provisions by assigning residual exposure beyond the Second Schedule to the Union Government. These reforms are designed to advance India’s clean energy targets and net-zero commitments.

A key feature of the SHANTI Act is its emphasis on fostering technological progress, research, and innovation within the nuclear energy ecosystem. Recognizing the critical role of intellectual property rights (IPRs) in stimulating research and safeguarding innovations, the Act integrates these protections with India’s broader energy strategy. The framework aligns with the Patents Act, 1970, and international standards under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), particularly Articles 27 to 34, which set minimum patent protection requirements.

The nuclear industry’s technological advancements raise complex issues involving national security, public safety, and international non-proliferation obligations. The SHANTI Act seeks to balance these concerns with the need to promote innovation and public welfare.

Section 38 of the SHANTI Act explicitly permits patent protection for inventions related to the peaceful use of nuclear energy and radiation. This provision encourages research and development in areas such as advanced reactor designs, radiation safety technologies, nuclear waste management, and fuel-cycle improvements. However, patents are granted only when inventions meet the criteria of novelty, inventive step, and industrial applicability as defined under Sections 2(1)(j) and 2(1)(ja) of the Patents Act, 1970.

Patent protection serves as a crucial incentive for both public institutions and private enterprises to invest in nuclear technologies that enhance efficiency, safety, and sustainability. By securing exclusive rights, inventors are motivated to develop innovative solutions that contribute to India’s clean energy infrastructure.

Beyond patenting, the SHANTI Act underscores the importance of technology transfer in translating scientific breakthroughs into practical applications. This process involves transferring knowledge and inventions from research institutions to commercial entities through mechanisms such as patent licensing, joint research initiatives, public-private partnerships, and collaboration with international organizations.

Given the strategic and security sensitivities surrounding nuclear technologies, technology transfer under the SHANTI Act is subject to stringent legal controls and government oversight. This ensures compliance with India’s international commitments and safeguards against unauthorized dissemination.

A notable challenge addressed by the Act is balancing intellectual property protection with national security and public interest. While patents require disclosure of technical details, certain nuclear-related inventions may necessitate confidentiality to prevent security risks. To this end, Section 39 of the SHANTI Act overrides the Right to Information Act, 2005, empowering the government to classify specific nuclear information as “restricted” and exempt it from public disclosure.

This approach reflects the principle that intellectual property rights can be regulated in the public interest. The Patents Act provisions on compulsory licensing (Sections 84–92) and government use of patents with compensation (Section 100) align with TRIPS Article 31, permitting authorized use without consent under defined conditions.

The SHANTI Act’s legal regime thus addresses the unique demands of the nuclear energy sector, where safeguarding sensitive information must coexist with encouraging innovation. Policymakers face the task of determining which nuclear inventions are suitable for patent protection and which require confidentiality to uphold national security and non-proliferation commitments.

In summary, the SHANTI Act, 2025, establishes a comprehensive intellectual property framework tailored to India’s nuclear energy ambitions. By promoting patent protection, facilitating controlled technology transfer, and ensuring security-sensitive information is protected, the Act supports the country’s transition to a sustainable and secure nuclear energy future.