Author: PPD Team Date: 01/04/2025
The United States Department of Energy (DOE) has granted Holtec International a critical regulatory approval to transfer small modular reactor (SMR) technology to India.
The authorization, issued on March 26, 2025, allows Holtec to share unclassified SMR technology with three Indian firms: Holtec Asia, Tata Consulting Engineers Limited (TCE), and Larsen & Toubro Limited (L&T).
The approval is valid for 10 years, with a review at the five-year mark.
Conditions for technology transfer
The approval comes with strict conditions. The transferred technology is to be used only for peaceful nuclear activities under International Atomic Energy Agency (IAEA) safeguards.
Holtec needs to submit quarterly reports to the DOE on the transfer of technology and assistance provided. Additionally, the technology cannot be shared with third parties, including other Indian entities or foreign countries, without US consent. It is also prohibited for military applications, including nuclear weapons, naval propulsion, or enrichment activities.
India has not yet provided non-proliferation assurances for three state-owned entities: Nuclear Power Corporation of India Limited (NPCIL), NTPC Ltd, and the Atomic Energy Regulatory Board (AERB). If these assurances are given in the future, Holtec may request an amendment to its authorization to include these entities.
Breakthrough in India-US civil nuclear deal
The 2007 India-US Civil Nuclear Agreement, also known as the 123 Agreement, was designed to facilitate full civil nuclear energy cooperation. However, progress has been slow due to legal and regulatory challenges, including India’s Civil Liability for Nuclear Damage Act (2010), which holds suppliers liable for nuclear accidents. This provision has deterred foreign nuclear firms from investing in India.
To address these issues, the Indian government has proposed amendments to the Atomic Energy Act of 1962, aiming to allow private sector participation in nuclear power generation. In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a Rs 200 billion Nuclear Energy Mission, targeting the installation of at least five SMRs by 2033. India aims to develop 100 GW of nuclear energy by 2047 as part of its strategy to achieve net-zero carbon emissions by 2070.
Strategic and economic impact
The DOE’s approval is expected to boost India-US nuclear collaboration. In January, former US National Security Advisor Jake Sullivan indicated that the US was working to lift restrictions on Indian nuclear entities to strengthen energy ties with New Delhi.
For India, this agreement provides an opportunity to modernize its nuclear reactor technology. India’s nuclear sector has traditionally relied on pressurized heavy water reactors (PHWRs), while the global industry has shifted toward pressurized water reactors (PWRs). Holtec’s SMR technology will help India align with global trends and scale up its nuclear energy capacity.
The deal also has geopolitical significance. China has been expanding its SMR capabilities as part of its outreach to developing nations. India and the US could counter China’s influence by jointly developing SMRs, enhancing energy security and global competitiveness. Holtec has indicated that it can expand its non-nuclear manufacturing unit in Dahej, Gujarat, to support SMR production. If approved, the company expects to double its workforce within a year.
While this approval is a major milestone, challenges remain. India must address legal and liability concerns to attract more foreign investment in its nuclear sector. Additionally, Holtec’s SMR-300 design is still under regulatory review in the UK and Canada, and its approval process will influence India’s SMR deployment timeline.