Nearly 18 years after the Indo-US nuclear deal was signed, the US Department of Energy (DoE) has granted approval for an American company to build and design nuclear reactors in India. This marks a significant development in the relationship between the two nations.
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Nearly 18 years after the Indo-US nuclear deal was inked, the US Department of Energy (DoE) has approved an American company to build and design nuclear reactors in India, in a major development in the ties between both nations, The Times of India reported.
The DoE granted Holtec International approval to transfer small modular reactor (SMR) technology to India on March 26 this year.
Holtec is a leader in designing nuclear reactor parts and manufacturing storage and transport casks for spent nuclear fuel.
This approval allows Holtec to share SMR technology with three Indian companies: Holtec Asia (its regional subsidiary), Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd.
The deal is governed by US regulations (10CFR810), and the approval is valid for 10 years, with a review every five years.
The US Department of Energy said that these “jointly-designed and manufactured nuclear power plants will not be re-transferred to any other entity or end user in India or to other countries except the US without the prior written consent of the Government of the United States.”
India’s earlier denial of approval citing UD DOE clearance
Holtec initially sought approval for three additional Indian end-users—NPCIL, NTPC, and AERB. However, the Indian government did not provide the required non-proliferation assurances for these state-owned entities.
Under the new approval, Holtec can later request to add NPCIL, NTPC, and AERB as authorised end-users. The authorisation is valid for 10 years, with a review every five years.
It is also subject to India’s assurance, given on March 3, 2025, that private entities L&T, TCE, and Holtec Asia will use the transferred technology only for peaceful nuclear activities under IAEA safeguards, not for weapons or military purposes.