US-India Nuclear Deal

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  • US Approval for Tech Transfer: The US has authorized Holtec International to transfer unclassified Small Modular Reactor (SMR) technology to three Indian private entities: Holtec Asia, Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd.

  • Peaceful Use Only: The SMR technology is strictly for peaceful civilian purposes, adhering to IAEA safeguards and excluding military applications.

  • Revival of Civil Nuclear Deal: This move operationalizes the 2008 India-US Civil Nuclear Deal by overcoming previous barriers to technology transfer.

  • Private Sector Involvement: It marks the first direct US technology transfer

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to Indian private firms, shifting from a state-controlled model to public-private partnership.

  • Boost to Indigenous Capability: Facilitates local manufacturing of SMRs, positioning India as a potential hub for nuclear innovation and export.

  • Regulatory Hurdles: India’s Civil Liability for Nuclear Damage Act (2010) and Atomic Energy Act (1962) pose challenges, with amendments being considered to enable private sector participation and allay foreign investment concerns.

  • SMR Advantages: SMRs offer fuel efficiency, scalability, passive safety, and low-carbon energy, making them suitable for diverse power systems and remote areas.

  • Indian Initiatives: India aims to develop at least 5 indigenously designed SMRs by 2033 and deploy Bharat Small Reactors (BSRs) as captive power plants for industries.

  • Competing with China: The collaboration enables India and the US to compete with China’s SMR ambitions.

  • Conditions: Technology cannot be retransferred without US consent and is strictly for peaceful uses under IAEA safeguards, excluding enrichment or sensitive nuclear technology.