UPSC CURRENT AFFAIRS – 01st April 2025
US clears firm to build and design n-reactors in India
Why in News?
The US Department of Energy’s approval for Holtec International to build and design nuclear reactors in India marks a significant step forward in the India-US nuclear cooperation, enhancing India’s nuclear capacity with small modular reactors (SMRs).
Introduction
- The US Department of Energy (DoE) has approved Holtec International, a US-based company, to build and design nuclear reactors in India.
- This approval marks the next phase of India-US civil nuclear cooperation, following two decades of negotiations after the 2005 India-US nuclear deal.
- It is expected to modernize India’s nuclear reactor technology and increase production capacity.
Background of the India-US Civil Nuclear Deal
- Signed in 2005, the deal aimed to provide India with access to civilian nuclear technology.
- Progress was hindered due to regulatory constraints and non-proliferation concerns, including the restrictions under the US Atomic Energy Act of 1954.
Recent Regulatory Breakthrough
- On March 26, 2025, the US DoE granted Holtec International authorization under Part 810 of the Atomic Energy Act.
- This approval allows Holtec to transfer Small Modular Reactor (SMR) technology to three Indian firms: Holtec Asia, Tata Consulting Engineers Ltd (TCE), and Larsen & Toubro Ltd (L&T).
- Holtec is now permitted to not only export equipment but also participate in reactor design and manufacturing in India.
Conditions and Implications of the Authorization
- Technology Transfer: Only for peaceful nuclear purposes, in line with IAEA safeguards, with a ban on military use.
- Monitoring and Reporting: Holtec must submit quarterly reports to the US DoE detailing technology transfer to Indian firms.
- Non-Transferability: Technology cannot be transferred to other entities without prior US government consent.
- Private Sector Participation: Authorization includes involvement of private Indian companies, a departure from the traditional dominance of state-owned entities like NPCIL.
Strategic Significance for India
- The approval will modernize India’s nuclear fleet by introducing more efficient pressurized water reactors (PWRs) instead of outdated heavy-water reactors.
- Small modular reactors (SMRs), ranging from 30MWe to 300MWe, offer advantages for deployment in remote areas and can meet the country’s growing energy demands.
- SMRs can be manufactured and scaled up faster than traditional large reactors.
India's Nuclear Sector Challenges
- Technological limitations and regulatory frameworks have impeded progress, especially the Civil Liability for Nuclear Damage Act (2010), which limits foreign investment.
- The inclusion of private companies like L&T and TCE in the supply chain could help resolve issues, making the sector more attractive to international investors.
Global Competitive Landscape
- This collaboration could position India as a competitor to China, which is also pursuing dominance in the SMR market.
- The India-US partnership could leverage combined strengths in manufacturing and design to challenge China’s global nuclear ambitions.
Conclusion
- The approval for Holtec to transfer SMR technology represents a significant leap forward in India-US nuclear cooperation.
- This deal will expand India’s nuclear energy capacity, contributing to clean energy transition goals and offering a sustainable solution to rising energy demands.
- The involvement of private companies and foreign technology could set a precedent for future international nuclear collaborations and further India’s position in the global nuclear market.
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