The recent approval by the US Department of Energy for Holtec International to share unclassified Small Modular Reactor (SMR) technology with three Indian entities signifies a major milestone in bilateral civil nuclear cooperation. This development operationalizes the 2007 India-US Civil Nuclear Agreement, enhancing collaboration in the nuclear energy sector.
The three Indian companies authorized to receive this cutting-edge SMR technology include:
The authorization granted by the US is valid for a period of 10 years, with a mandatory review after 5 years. Key conditions include:
Despite its signing in 2007, the civil nuclear deal faced delays primarily due to India’s Civil Liability for Nuclear Damage Act (2010). This legislation made suppliers liable in the event of nuclear accidents, which discouraged foreign companies such as GE-Hitachi and Westinghouse from entering the Indian market.
In the 2025 Union Budget, India introduced a ₹200 billion Nuclear Energy Mission aimed at developing at least five SMRs by 2033. The objective is to achieve a capacity of 100 GW of nuclear power by 2047, supporting India's commitment to net-zero emissions by 2070.
SMRs are compact, factory-built reactors that provide scalability, reduced construction time, and improved safety features. Their deployment is particularly beneficial in remote areas and for integration with industrial processes. This is essential for India's energy transition towards cleaner sources and increased energy security.
The collaboration with Holtec is expected to localize SMR manufacturing through the involvement of Tata and L&T. Holtec's existing plant in Dahej, Gujarat, may expand its operations to support SMR production, allowing Indian industries to access advanced reactor technology and reduce reliance on older Pressurized Heavy Water Reactor (PHWR) designs.
This partnership not only enhances India’s nuclear capabilities but also serves as a counterbalance to China's growing influence in the global SMR market. Moreover, it strengthens India's position in clean energy and deepens its technological ties with the United States.
To further expand nuclear partnerships, India must address supplier liability concerns and consider amending the Atomic Energy Act of 1962 to facilitate greater private sector participation. Additionally, providing further non-proliferation assurances may be necessary to enhance international cooperation.
Globally, Holtec's SMR-300 design is currently under regulatory review in several countries, including the UK and Canada. It stands as one of seven advanced reactor models supported by the US Department of Energy, showcasing the potential for innovative nuclear technology.
Q1. What is the significance of Holtec International's approval?
Answer: The approval allows Holtec International to share SMR technology with Indian firms, enhancing nuclear cooperation under the 2007 India-US Civil Nuclear Agreement.
Q2. Which Indian companies received SMR technology?
Answer: The companies include Holtec Asia, Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd, all authorized to utilize the SMR technology for peaceful purposes.
Q3. What are the limitations of the US authorization for SMRs?
Answer: The technology is restricted to peaceful uses, cannot be shared with third parties, and Holtec must report quarterly to the US Department of Energy.
Q4. Why was the India-US civil nuclear deal delayed?
Answer: Delays stemmed from the Civil Liability for Nuclear Damage Act, which discouraged foreign suppliers due to liability concerns in case of nuclear accidents.
Q5. How does SMR technology benefit India's energy sector?
Answer: SMRs offer scalable and safe energy solutions, aiding India's transition to cleaner energy and enhancing energy security, especially in remote areas.
Question 1: What is the primary purpose of Holtec International's SMR technology in India?
A) Military applications
B) Civilian nuclear power generation
C) Exporting nuclear technology
D) Research only
Correct Answer: B
Question 2: How long is the approval for SMR technology from the US Department of Energy valid?
A) 5 years
B) 10 years
C) 15 years
D) 20 years
Correct Answer: B
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