It also provides for the participation of private entities and joint venture arrangements in the civilian nuclear sector, subject to regulation and supervision by the Union Government. As part of this framework, the SHANTI Act amends Section 4 of the Patents Act 1970, thereby revising the legal treatment of inventions relating to nuclear energy.

Under the earlier legal framework, Section 4 of the Patents Act 1970 imposed a complete prohibition on the grant of patents for inventions relating to atomic energy, as determined with reference to the Atomic Energy Act 1962. The operation of this provision was dependent upon governmental classification of technologies as relating to atomic energy. Consequently, inventions associated with nuclear technology, including those intended for civilian and peaceful applications, were excluded from patent protection irrespective of their specific function or use.

The SHANTI Act alters this position through the amendment of Section 4 of the Patents Act. The amended provision removes the absolute exclusion of inventions relating to nuclear energy from patentability. It provides that patents may be granted for inventions relating to nuclear energy, subject to compliance with the provisions of the Patents Act 1970 and Section 38 of the SHANTI Act. Patent applications concerning nuclear-related inventions are therefore to be examined in accordance with the general criteria for patentability prescribed under the Patents Act, including novelty, inventive step, and industrial applicability, subject to the additional conditions specified under the nuclear energy regulatory framework.

Section 38 of the SHANTI Act specifies certain categories of nuclear activities that remain under the control of the Union Government. These categories include enrichment, reprocessing, and other facilities or activities that may be notified under the Act. Inventions that fall within these specified areas may be excluded from patent protection or subjected to restrictions in accordance with the provisions of the SHANTI Act. The determination of whether an invention falls within a reserved category is governed by the statutory provisions of the Act and any notifications issued thereunder.

The SHANTI Act and the amended Section 4 of the Patents Act together establish the legal position governing the treatment of inventions relating to nuclear energy under Indian law. The framework provides for the grant of patents in respect of certain nuclear related inventions while maintaining restrictions in relation to specified categories of nuclear activity. The examination and administration of patent applications in this field are subject to coordination between the patent authorities and the governmental bodies responsible for nuclear regulation.