Two Decades Later, India-U.S. Civil Nuclear Deal Finally Sees Progress
India-West News Desk
WASHINGTON, DC – Two decades after the landmark India-U.S. civil nuclear deal was signed, its commercial potential is finally being realized. The U.S. Department of Energy (DoE) has granted regulatory clearance allowing Holtec International to design and build nuclear reactors in India.
The March 26 approval authorizes Holtec to transfer unclassified small modular reactor (SMR) technology to three Indian firms: Holtec Asia, Tata Consulting Engineers, and Larsen & Toubro. Holtec, led by Indian American Kris P. Singh, has operated an engineering unit in Pune since 2010 and a manufacturing facility in Prime Minister Narendra Modi’s Gujarat.
The decision is seen as a diplomatic victory for India, especially amid the U.S.’s transactional trade policies. It could help India modernize its nuclear sector, shifting from outdated pressurized heavy water reactors to globally prevalent pressurized water reactors.
Holtec had originally sought approval for three additional state-owned entities—Nuclear Power Corporation of India Limited, NTPC Ltd., and the Atomic Energy Regulatory Board (AERB). However, India did not provide non-proliferation assurances for these organizations. Holtec may request an amendment to include them later.
The authorization, valid for 10 years with a review at the five-year mark, is contingent on India’s assurance that the technology will be used only for peaceful nuclear activities under International Atomic Energy Agency safeguards.
Previously, U.S. regulations allowed companies like Holtec to export nuclear equipment to India but barred them from manufacturing or designing nuclear reactors there. This restriction hindered India’s efforts to produce SMRs domestically. The new authorization outlines strict conditions: transferred technology cannot be re-exported without U.S. approval, and Holtec must report quarterly on its activities in India.
Holtec’s SMR-300 design is among seven advanced reactors backed by the U.S. DoE. If manufacturing approvals are granted, Holtec has signaled plans to double its workforce in India within a year, potentially positioning India and the U.S. to compete with China in the growing SMR market.
