India and the US to Collaboratively Design and Manufacture Nuclear Reactors in India

In a significant development for the India-US civil nuclear deal, signed two decades ago, the US Department of Energy (DoE) has granted final approval for a US company to collaborate on the design and construction of nuclear power plants in India.

US Department of Energy has approved the joint design and manufacture of nuclear reactors with India | NDTV

Although the overarching framework of the India-US civil nuclear agreement was established in 2007 by then Prime Minister Manmohan Singh and US President George W. Bush, nearly 20 years of negotiations, in-depth discussions, legal and regulatory approvals, technology permits, liability provisions, and meticulous adjustments to the plans were required to secure the go-ahead for execution.

Major Victory for Indian Diplomacy

Under the India-US civil nuclear deal, US companies were allowed to export nuclear reactors and equipment to India but were prohibited from engaging in design work or manufacturing nuclear equipment within the country. India maintained a firm stance that all processes—design, manufacturing, and technology transfer—needed to be carried out domestically. Successive Indian governments upheld this position. After many years, with Russia gaining influence, the US has now agreed to India's terms. US and Indian companies will collaborate on the production of Small Modular Reactors (SMRs), co-manufacturing all components and parts. This development is viewed as a significant victory for Indian diplomacy. The approval was granted on March 26, 2025.

The US has imposed one condition: 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 United States without the prior written consent of the Government of the United States."

The US government stated that the commercial potential for civil nuclear energy in India is enormous, following the Department of Energy's approval of Holtec International's proposal for specific authorization regarding restrictive regulations.

The regulation that received approval is 10CFR810, which is part 810 of Title 10 in the Code of Federal Regulations under the US Atomic Energy Act of 1954. It relates to the Department of Energy's "statutory responsibility for authorizing the transfer of unclassified nuclear technology and assistance to foreign atomic energy activities within the United States or abroad."

According to Holtec International's application, the authorization allows the company to transfer "unclassified small modular reactor (SMR) technology" to three Indian companies. These include:

1. Larsen & Toubro Limited

2. Tata Consulting Engineers Ltd 

3. Holtec's regional subsidiary Holtec Asia.

Holtec International: A Global Leader

Holtec International, a global energy company based in the US, was founded and is led by Indian-American entrepreneur Krishna P Singh. Its wholly owned subsidiary in Asia, Holtec Asia, has been operational since 2010 and is headquartered in Pune, where it also manages its specialized engineering division. The company also has a manufacturing facility located in Dahej, Gujarat, in Bharuch district.

Regarded as one of the world’s largest exporters of nuclear technology, components, and parts, Holtec is a global leader in the decommissioning industry, which focuses on the safe and environmentally responsible removal of industrial infrastructure.

Holtec International had also requested approvals for two government-owned Indian companies that supply electricity to end-users, as well as a government regulator to ensure safety standards. These organizations were:

1. Nuclear Power Corporation of India Limited or NPCIL

2. National Thermal Power Corporation or NTPC

3. Atomic Energy Review Board or AERB

The Government of India had not granted the necessary clearances for these state-owned corporations, as Holtec had not yet received approval from the US Department of Energy. With the US government's approval now in place, Holtec is likely to request the Indian government to issue permits for these important Indian entities.

Competition with China

This agreement between Washington and New Delhi to collaboratively design and manufacture nuclear power plants in India, along with the transfer of technology, is being hailed as a significant diplomatic achievement. The timing is crucial, as it coincides with the Trump Administration's push to enhance U.S. manufacturing and globally promote 'Made-in-USA' products. The fact that nuclear reactors will now be manufactured in India marks a major win for the country.

The deal is also seen as a major success for India's private sector, which will now gain specialized knowledge and expertise in designing and building nuclear power plants—an area previously dominated by government corporations.

India, which currently excels in smaller nuclear reactors like the 220MWe PHWR (Pressurized Heavy Water Reactor), will now gain access to advanced technology to build nuclear power plants using PWR (Pressurized Water Reactor) technology, the standard for most nuclear plants worldwide.

This joint initiative between India and the U.S. also arrives at a time when China is intensifying its efforts to lead in the Small Modular Reactor (SMR) market with competitive pricing. Affordable SMRs are crucial for the Global South's cost-effective development, and both India and China are vying for influence in this sector, seeking to extend their reach across the Global South.

(This Article was originally published by NDTV)