India – USA Nuclear Deal 2025
Kartavya Desk Staff
Syllabus: Nuclear Energy
Source: TOI
Context: The US Department of Energy has approved Holtec International to transfer Small Modular Reactor (SMR) technology to India marking a major milestone in operationalizing the Indo-US Civil Nuclear Deal (123 Agreement) signed in 2007.
Recent Indo-US Nuclear Deal Breakthrough:
• Technology Transfer Approved: The US DoE has permitted Holtec International to share unclassified SMR technology with Indian firms under 10CFR810 regulations.
• The deal is under the restrictive regulation of the US, ‘10CFR810’, with the approval being valid for 10 years and will be re-evaluated every five years.
• Strategic Collaboration: Indian partners include L&T, Tata Consulting Engineers, and Holtec Asia, with regulatory compliance to ensure no retransfer without US consent.
• Manufacturing within India: For the first time, US-designed reactors can be co-developed and manufactured in India—previously prohibited.
• Linked to Energy Security Dialogue: The move follows Modi-Trump discussions in Feb 2025 focused on energy resilience and decarbonisation goals.
• Scope for Expansion: The government is exploring amendments to the Atomic Energy Act, 1962 to allow more private sector participation in civil nuclear power.
E.g. The Kovvada project in Andhra Pradesh is planned with six 1208 MWe reactors under Indo-US collaboration.
Significance of Nuclear Energy in India
• Clean Baseload Power: Nuclear energy offers low-carbon, reliable power unaffected by weather like solar or wind.
• Reduces Fossil Fuel Dependency: Helps India reduce its ~70% fossil fuel dependence, supporting energy sovereignty.
• Supports Net-Zero Targets: Critical for achieving 500 GW of non-fossil fuel energy by 2030 and Net-Zero by 2070.
• Promotes Industrial Decarbonisation: BSRs and SMRs can be installed near industries for clean captive power.
• Geostrategic Edge: Enhances India’s global standing in clean energy tech and addresses energy security.
India’s Achievements in Nuclear Energy:
• Installed Capacity Growth: Nuclear capacity rose from 4,780 MW in 2014 to 8,180 MW in 2025, across 24 reactors.
• Indigenous Reactor Development: Kakrapar Units 3 & 4 (700 MWe PHWRs) are fully Indian-designed and operational.
• Fast Breeder Breakthrough: The Prototype Fast Breeder Reactor (PFBR) achieved key commissioning milestones in 2024.
• Joint Venture Models: NPCIL and NTPC launched the ASHVINI JV to co-develop nuclear plants within the legal framework.
• New Uranium Discovery: The Jaduguda mine discovery adds 50+ years of life to India’s uranium supply.
E.g. RAPP-7 in Rajasthan reached criticality in 2024, showcasing indigenous reactor capability.
Challenges Associated with Nuclear Energy in India:
• Legislative Constraints: The Atomic Energy Act, 1962 restricts private investment and innovation in reactor development.
• High Capital Costs: Nuclear projects require long gestation periods and high upfront costs compared to renewables.
• Public Perception and Safety Concerns: Despite a good safety record, public resistance remains high post-Fukushima.
• Limited Fuel Security: India imports uranium and is yet to fully utilise its thorium potential.
• Regulatory Delays: Multi-layered clearances from AERB, MoEF, and local bodies delay project timelines.
E.g. The delay in initiating work at Kovvada due to regulatory complexities reflects procedural bottlenecks.
Way Ahead:
• Amend Atomic Energy Laws: Reforms to enable private sector and ease entry barriers for tech partnerships are essential.
• Accelerate SMR and BSR Deployment: Fast-track indigenous development of at least five SMRs by 2033 with ₹20,000 crore allocation.
• Build Domestic Supply Chains: Promote Make-in-India initiatives for nuclear component manufacturing and fuel supply.
• Focus on Thorium Cycle R&D: Strengthen India’s long-term energy security by unlocking Stage-3 of Homi Bhabha’s plan.
• Improve Public Awareness and Transparency: Boost confidence in nuclear safety protocols through education and community engagement.
E.g. The BARC-developed SMRs will repurpose retired coal plants, addressing land and infrastructure reuse.
Conclusion:
India’s nuclear energy push marks a bold step toward clean, secure, and scalable energy infrastructure. With global collaborations, indigenous innovation, and legal reforms, the sector is poised to become a cornerstone of India’s energy independence. Strategic execution will determine how swiftly India realises its 100 GW nuclear target by 2047.
• With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (UPSC-2018)