Introduction and Background

The US has approved Holtec International to transfer unclassified Small Modular Reactor (SMR) technology to three Indian private entities under its regulation 10CFR810. 

 

Key highlights of the India-US SMR Technology Nuclear Deal

  • The permission, operative for 10 years and reviewable every 5 years, grants Holtec the right to design and construct nuclear reactors in India. 
  • The SMR technology can only be used for serene civilian purposes, must adhere to International Atomic Energy Agency (IAEA) safeguards and is strictly prohibited for military operations to ensure compliance with global non-proliferation standards. 
  • This act revives the 2008 India-US Civil Nuclear Deal or 123 Agreement and marks the first direct US tech transfer to Indian private firms, boosting indigenous capabilities and positioning India as a potential hub for nuclear innovation and exports.

 

Legal and Policy Challenges in India

  • The Civil Liability for Nuclear Damage Act, 2010 discourages foreign investment and tech transfer as it holds suppliers accountable for nuclear accidents. 
  • The Atomic Energy Act, 1962 constrains nuclear power generation exclusivity to government entities, restricting private firms from ownership or plant operations. 
  • The Indian government is taking steps to amend these policies to enable private sector participation in nuclear energy.

 

Introduction to Small Modular Reactors

  • SMRs are compact, advanced nuclear reactors with a capacity of up to 300 MW(e), suitable for remote or space-constrained areas.
  • These reactors are compact, modular and utilise nuclear fission to produce energy. 

 

Advantages of Small Modular Reactors

  • SMRs are fuel-efficient, scalable and flexible and incorporate inherent safety systems. 
  • These reactors offer 24/7 clean energy, aiding in meeting rising energy demands and reaching net-zero goals by 2070.

 

SMR and its Importance to India

  • The Union Budget 2025–26 announces a Nuclear Energy Mission focusing on research and development of SMRs and aims to have at least 5 indigenously designed and operational SMRs by 2033. 
  • As part of this initiative, the Bharat Small Reactors (BSRs) will be deployed near certain industries, functioning as captive power plants to aid decarbonisation. The initiative aligns with India's aim to achieve 500 GW of non-fossil fuel-based energy, and 50% renewable energy by 2030.
  • Bhabha Atomic Research Centre (BARC) is also focusing on SMRs for repurposing retiring coal-based power plants and meeting the energy needs of remote areas. The Department of Atomic Energy (DAE) is further working on developing reactors for hydrogen generation and to utilise India’s vast thorium resources.