US approves Holtec to build nuclear reactors in India

New Delhi: In a significant development for the long-stalled India-US nuclear deal, the US Department of Energy (DoE) has granted regulatory clearance to an American firm to design and build nuclear reactors in India.

Holtec International, a leading global company specializing in nuclear reactor components, received crucial approval from the DoE, allowing it to transfer small modular reactor (SMR) technology to India. Holtec will now collaborate with Holtec Asia (its regional subsidiary), Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd to share "unclassified small modular reactor (SMR) technology," The Times of India newspaper reported.

However, the US has imposed a key restriction — the jointly developed nuclear power plants cannot be transferred to any other Indian entity or third countries "except the US without the prior written consent of the Government of the United States."

Holtec had also sought permission to partner with two Indian state-owned firms — Nuclear Power Corporation of India Limited (NPCIL) and National Thermal Power Corporation (NTPC) — as well as the Atomic Energy Regulatory Board (AERB). However, as per the news report, the Indian government had not cleared these entities for collaboration since Holtec had not yet received DoE approval.

The Indo-US Civil Nuclear Agreement, commonly known as the 123 Agreement, was originally signed in August 2007 by then Prime Minister Manmohan Singh and then US President George W Bush to enable full-fledged nuclear cooperation between the two nations. However, multiple legal and regulatory challenges delayed its implementation for nearly two decades.

Until now, US firms were only permitted to export nuclear reactors and equipment to India, but they were barred from engaging in design or manufacturing within the country.