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Boosting Indo-US nuclear collaboration: the need, two key hurdles
- The Indian Express |
- International Relations |
- 2025-01-07
- U.S.-India Initiative on Critical and Emerging Technology (iCET)
- Indo-US Nuclear Deal
The Indo-US nuclear collaboration faces hurdles due to US regulatory restrictions and India's liability laws. Efforts to ease these barriers aim to enhance joint nuclear manufacturing, particularly in Small Modular Reactors (SMRs), amidst competition from China.
Indo-US Nuclear Deal
The Indo-US nuclear deal encounters significant legal barriers on both the American and Indian sides, affecting the potential for nuclear collaboration. This agreement has the potential to impact the global nuclear industry and geopolitical dynamics, particularly in the context of emerging technologies and competition from China.
Key Legal Barriers
- American Side:
The 10CFR810 authorization (Part 810 of Title 10, Code of Federal Regulations of the US Atomic Energy Act of 1954) is a major hurdle. While it allows US nuclear vendors to export equipment to countries like India under strict safeguards, it prohibits manufacturing nuclear equipment or performing nuclear design work in India. This limitation impedes New Delhi's desire to engage in manufacturing and co-producing nuclear components for atomic power projects. - Indian Side:
The Civil Liability for Nuclear Damage Act, 2010, channels operator liability to equipment suppliers. This has caused reluctance among foreign entities such as GE-Hitachi, Westinghouse, and Orano to invest in India's nuclear sector, fearing future liabilities.
The China Angle
- US National Security Advisor Jake Sullivan's trip included efforts to strengthen the innovation alliance under the US-India initiative on Critical and Emerging Technology (iCET). A breakthrough could facilitate joint manufacturing of nuclear components for projects in India using American reactors.
- India aims to position itself as a hub for manufacturing nuclear reactors, particularly small modular reactors (SMRs) with capacities between 30MWe and 300MWe. These are seen as cost-effective and scalable solutions.
- China is also advancing plans to become a leader in the SMR arena, using these reactors as diplomatic tools in the Global South, akin to its strategy in the electric vehicle sector.
Technological and Strategic Implications
- India's civil nuclear program primarily employs pressurized heavy water reactors (PHWRs) but faces challenges as light water reactors (LWRs) dominate globally. The US, Russia, and France lead LWR technology.
- A collaborative approach between India and the US could counterbalance China's lead in nuclear technology, as India faces technological constraints and the US contends with high labor costs and protectionist sentiments.