US Approves Nuclear Reactor Tech Transfer to India After Years of Delays

In a major breakthrough in the long-pending Indo-US nuclear deal, the US Department of Energy (DoE) has granted regulatory approval to Holtec International, an American nuclear technology firm, to design and build nuclear reactors in India. The approval, given on March 26, 2025, marks a significant milestone in nuclear cooperation between the two countries, nearly two decades after the deal was originally signed.

Holtec, a global leader in nuclear reactor components and spent fuel storage, has received clearance to transfer unclassified Small Modular Reactor (SMR) technology to three Indian firms—Holtec Asia (its regional subsidiary), Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd. The approval is valid for ten years under the strict US regulation ‘10CFR810’ and will be reviewed every five years.

While this clearance is a major step forward, the US has imposed strict conditions. The jointly designed and manufactured nuclear reactors cannot be transferred to any other Indian entity or foreign country without prior approval from the US government. Holtec had also sought approval to collaborate with two state-owned Indian firms, Nuclear Power Corporation of India Limited (NPCIL) and National Thermal Power Corporation (NTPC), along with India’s Atomic Energy Regulatory Board (AERB). However, the Indian government had not provided the necessary clearances earlier since Holtec had not secured DoE approval at that time.

The India-US Civil Nuclear Agreement, also 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 civil nuclear energy cooperation. However, multiple legal and regulatory hurdles delayed its implementation for nearly two decades. Until now, US firms were allowed to export nuclear reactors and equipment to India but were prohibited from engaging in design or manufacturing within the country.

The breakthrough comes after a mid-February meeting between Indian Prime Minister Narendra Modi and former US President Donald Trump, where both leaders agreed to push forward nuclear cooperation as part of a broader strategic initiative. The discussions resulted in a commitment to build US-designed nuclear reactors in India and fully leverage the 123 Agreement to enhance energy security and technological cooperation.

Currently, India operates 22 nuclear reactors with an installed capacity of 6,780 MWe, including 18 Pressurised Heavy Water Reactors (PHWRs) and 4 Light Water Reactors (LWRs). In February 2024, the Kakrapar Unit 4 became the latest nuclear power plant to become operational.

To accelerate the expansion of nuclear power generation, the Indian government is considering amendments to the Atomic Energy Act of 1962, which currently restricts private investments in nuclear power projects. If passed, these amendments could pave the way for greater private sector participation and increased foreign collaboration in India's nuclear energy sector.

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