Two decades after the historic civil nuclear agreement between India and the United States was established, its commercial viability is now beginning to take shape. The U.S. Department of Energy (DoE) has provided regulatory approval for Holtec International to design and construct nuclear reactors in India.The approval granted on March 26 permits Holtec to share unclassified small modular reactor (SMR) technology with three Indian companies: Holtec Asia, Tata Consulting Engineers, and Larsen & Toubro. Holtec, under the leadership of Indian American Kris P. Singh, has maintained an engineering office in Pune since 2010 and operates a manufacturing facility in Gujarat, the home state of Prime Minister Narendra Modi.This decision is regarded as a diplomatic achievement for India, particularly in light of the U.S.’s transactional trade policies. It has the potential to assist India in modernizing its nuclear industry, transitioning from outdated pressurized heavy water reactors to more widely used pressurized water reactors.
Initially, Holtec 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 the necessary non-proliferation assurances for these organizations, although Holtec may later request an amendment to include them.The authorization is effective for a period of ten years, with a review scheduled at the five-year mark, and is dependent on India’s commitment that the technology will be utilized solely for peaceful nuclear purposes under the safeguards of the International Atomic Energy Agency.
Previously, U.S. regulations permitted companies like Holtec to export nuclear equipment to India but prohibited them from manufacturing or designing nuclear reactors within the country. This limitation obstructed India’s ambitions to produce SMRs domestically. The new authorization imposes stringent conditions: the transferred technology cannot be re-exported without U.S. consent, and Holtec is required to provide quarterly reports on its operations in India.Holtec’s SMR-300 design is one of seven advanced reactors supported by the U.S. DoE. Should manufacturing approvals be granted, Holtec has indicated intentions to expand its operations significantly.
