There has been big breakthrough in India-US nuclear pact two decades after being signed. The United States has given regulatory approval to Holtec International for building and designing nuclear reactors in India, as reported by Indian Express. The US Department of Energy (DoE) approved this deal on March 26. This will also be considered as the first step in the path of tapping the commercial side of the 2008 deal made between the two nations.
Private firm gets green signal but with condition
Approval has been given to Holtec for sharing the modular reactor (SMR) technology under conditions with three Indian firms, namely Holtec Asia, Larsen &Toubro Ltd, and Tata Consulting Engineers Ltd. This is under the restrictive US regulation called ‘’10CFR810”’. The approval of the deal is valid for 10 years and will be reevaluated every five years.
Meanwhile, the US has not permitted technology transfer to main Indian government agencies like the Nuclear Power Corporation of India Limited (NPCIL), Atomic Energy Regulatory Board (AERB), and NTPC Ltd. India has not yet provided non-proliferation assurances for them. Holtec can later apply to add these state-run bodies to the list.
The US has made it clear that the technology cannot be shared further without approval from the US, and it should be strictly utilised for peaceful purposes as per international safeguards. Holtec will also need to submit quarterly reports to the DoE with specific details on the technology transferred.
Long-stalled nuclear deal is on track
The approval has been seen as a breakthrough after years of gap following the 2007 signing of the 123 agreements between India and the US. Foreign investments were discouraged because of legal hindrances, particularly India’s Civil Liability for Nuclear Damage Act and supplier liability concerns.
Holtec was set up by Indian American Kris P Singh and has facilities in Gujarat and Pune. The firm has also hinted its willingness to increase its workforce in India more if full production commences. This marks a real step forward in realising the potential of the India-US nuclear relationship.
