Significant advancement in nuclear agreement as US firm receives authorization to construct nuclear reactors in India

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A notable moment captured is Prime Minister Narendra Modi shaking hands with US President Donald Trump at the White House. (File photo: Reuters)

The United States has granted regulatory approval to Holtec International for the design and construction of nuclear reactors in India.

This marks a significant development in the India-US nuclear agreement, which was established two decades ago. US Department of Energy (DoE) approved this initiative on March 26. This approval represents a crucial initial step towards realizing the commercial potential of the 2008 agreement between the two countries.

Private company receives approval with stipulations

Holtec has been authorized to share small modular reactor (SMR) technology under specific conditions with three Indian companies: Holtec Asia, Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd. This is governed by the stringent US regulation known as “10CFR810”. The approval is valid for a period of ten years, with a review scheduled every five years.

However, the US has not allowed technology transfer to key Indian government entities such as the Nuclear Power Corporation of India Limited (NPCIL), the Atomic Energy Regulatory Board (AERB), and NTPC Ltd., as India has yet to provide non-proliferation assurances for these organizations. Holtec may later seek to include these state-owned entities in the agreement.

The US has emphasized that the technology cannot be further disseminated without its consent and must be used solely for peaceful purposes in accordance with international safeguards. Additionally, Holtec is required to submit quarterly reports to the DoE detailing the technology transferred.

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