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Context:

The US Department of Energy (DoE) has cleared Holtec International, a US-based company, to build and design small modular reactors (SMRs) in India.

News in Detail

The DoE clearance allows Holtec to transfer unclassified SMR technology to three Indian entities: Larsen & Toubro (L&T), Tata Consulting Engineers Ltd (TCE), and Holtec Asia, its subsidiary in India -> Step forward in utilizing the commercial potential of the India-US civil nuclear agreement signed two decades ago.

The US DoE imposes strict conditions

• Holtec must not retransfer the technology to any other entity in India or abroad without prior written consent from the US government.
• The transferred technology must be used exclusively for peaceful nuclear activities under IAEA safeguards and not for military purposes, including naval propulsion or enrichment technology.
• Third, Holtec must file quarterly reports to the DoE detailing the assistance provided to Indian partners.
• The authorization is valid for ten years, subject to review every five years.

What challenges remain for India and the US in implementing this deal?

India’s Civil Liability for Nuclear Damage Act, 2010, impose operator liability to equipment suppliers, deterring foreign vendors from investing in India’s nuclear sector.

Amendments to the Atomic Energy Act of 1962 are required to allow private companies to operate nuclear power plants.

This deal aligns with India’s broader energy and foreign policy goals. 

By adopting SMRs, India aims to address its growing energy demands while reducing carbon emissions.

The collaboration strengthens India’s strategic partnership with the US -> countering China’s ambitions in the global nuclear market.

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Source:

INDIAN EXPRESS

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