US firm approved to build nuclear reactors in India in major breakthrough deal

In a major breakthrough in the India-US nuclear deal that was signed nearly two decades earlier, the US Department of Energy (DoE) has provided regulatory clearance to a US company to build and design nuclear reactors in India.

According to an Indian Express report, the DoE cleared Holtec International on March 26, which would be considered as the first step in tapping the commercial aspects of the deal between the two nations.

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Private firm approved on conditions

The approval to the US firm has been given under conditions that it shares the ‘unclassified small modular reactor (SMR) technology’ with three Indian firms: Holtec Asia, Larsen &Toubro Ltd, and Tata Consulting Engineers Ltd. The deal is under the restrictive regulation of the US, ‘10CFR810’, with the approval being valid for 10 years and will be reevaluated every five years.

The US has not permitted the firm to transfer technology to Indian government agencies like the Nuclear Power Corporation of India Limited (NPCIL), Atomic Energy Regulatory Board (AERB), and NTPC Ltd. India has not provided the requisite non-proliferation assurances for these state-owned bodies, but Holtec can later apply to add them to the list.

The US has strictly said that the technology cannot be shared further without US approval and should be utilised for peaceful purposes, according to international safeguards. Holtec will be required to submit quarterly reports to the DoE, detailing the technology transferred.

India-US nuclear relationship

The approval comes years after the signing of 123 Agreements between India and the US in 2008. Due to legal challenges like India’s Civil Liability for Nuclear Damage Act and supplier liability concerns, foreign investments were discouraged in the country for years.

Holtec, founded by Indian American Krishna P Singh, has facilities in Gujarat and Pune. The firm suggested it may increase its workforce in India if full production commences, marking a crucial step towards realising the potential of the India-US nuclear relationship.

(With inputs from agencies)