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Thawing India's 'nuclear winter': Holtec nod should spur govt to tweak laws

01 Apr 2025
2 min

Breakthrough in Indo-US Civil Nuclear Agreement

Eighteen years after the Indo-US Civil Nuclear Agreement, significant progress has been achieved with the US Department of Energy granting approval to Holtec International for transferring small modular reactor (SMR) technology to India.

Key Approvals and Entities Involved

  • Holtec can now share unclassified SMR technology, ranging from 30 Mw to 300 Mw, with: 
    • Holtec Asia (regional subsidiary)
    • Tata Consulting Engineers
    • Larsen & Toubro

This development was previously stalled by the restrictive Civil Liability for Nuclear Damage Act (CLNDA).

Impact on India's Energy Goals

  • The approval aligns with the goal set by Finance Minister Nirmala Sitharaman to add 100 Gw of nuclear energy by 2047, forming part of a ₹20,000 crore Nuclear Energy Mission.
  • It offers an opportunity to accelerate India's energy transition by modifying existing laws.

Regulations and Conditions

  • The transfer is governed by the “10 CFR Part 810” export-control regulation of the US Atomic Energy Act.
  • Collaboration with Indian state-owned entities like Nuclear Power Corporation of India Ltd (NPCIL), NTPC, and the Atomic Energy Regulatory Board (AERB) is prohibited.
  • Transferred information cannot be shared with third parties without US consent.

Need for Legislative Amendments

  • India needs to amend the Atomic Energy Act to end NPCIL's monopoly and open the sector to private participation.
  • The CLNDA's Clause 17(b) imposes supplier liabilities, deterring foreign vendors like GE-Hitachi and Westinghouse from investing.

Historical Context and Implications

  • The CLNDA was linked to the post-Chernobyl International Supplementary Civil Nuclear Liability Convention.
  • India's misinterpretation of international conventions, influenced by the Bhopal gas tragedy, led to the inclusion of Clause 17(b).
  • Amending these laws is crucial for facilitating nuclear technology flow and addressing climate change imperatives.

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