UPSC CURRENT AFFAIRS – 01st April 2025

Home UPSC Current Affairs US clears firm to build and design n-reactors in India

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will modernize India’s nuclear fleet by introducing more efficient pressurized water reactors (PWRs) instead of outdated heavy-water reactors.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.