US approves Holtec to build nuclear reactors in India with Tata, L&T

The DoE approval permits Holtec to share unclassified SMR technology with three Indian entities-Holtec Asia (its regional subsidiary), Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd

In a major breakthrough for India-US nuclear cooperation, the US Department of Energy (DoE) has granted Holtec International a critical regulatory approval, allowing the company to transfer small modular reactor (SMR) technology to India. The March 26, 2025, authorisation clears a significant roadblock that had stalled the commercial implementation of the 2007 India-US civil nuclear agreement, according to a report in The Indian Express.

 

This approval permits Holtec to share unclassified SMR technology with three Indian entities—Holtec Asia (its regional subsidiary), Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd. The move is expected to deepen India’s nuclear expertise, localise SMR manufacturing, and strengthen New Delhi's position in the global SMR market.

 

Key conditions of authorisation

 

While this regulatory approval opens up new avenues for nuclear collaboration, there are certain conditions. The authorisation is valid for 10 years, subject to review at the five-year mark.

 

The technology must be used only for peaceful nuclear activities under International Atomic Energy Agency (IAEA) safeguards. Holtec is required to submit quarterly reports to the DoE detailing the transfer of technology and assistance provided. 

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The transferred information cannot be shared with any third party, including other Indian entities or foreign countries, without prior US consent. The technology cannot be used for military applications, including nuclear weapons, naval propulsion, or enrichment activities.

 

Notably, India has not yet provided non-proliferation assurances for three state-owned entities—Nuclear Power Corporation of India Limited (NPCIL), NTPC Ltd, and the Atomic Energy Regulatory Board (AERB). If these assurances are granted in the future, Holtec may seek to amend its authorisation to include these entities as well.

 

Breakthrough in delayed civil buclear deal

 

The India-US Civil Nuclear Agreement, also known as the 123 Agreement, was signed in 2007 to enable full civil nuclear energy cooperation between the two nations. However, progress on the ground has been sluggish due to multiple legal and regulatory challenges.

 

A major sticking point has been India’s Civil Liability for Nuclear Damage Act (2010), which holds suppliers liable for damages in case of a nuclear accident. This provision has deterred foreign nuclear vendors such as GE-Hitachi, Westinghouse, and France’s Areva from investing in India’s nuclear sector. To address this, the Indian government has proposed amendments to the Atomic Energy Act of 1962, aiming to allow private sector participation in nuclear power generation.

 

In Union Budget 2025, Finance Minister Nirmala Sitharaman announced India’s Nuclear Energy Mission with a budget of ₹200 billion, targeting the installation of at least five small modular reactors by 2033. India aims to develop 100 gigawatts of nuclear energy by 2047 as part of its strategy to achieve net-zero carbon emissions by 2070.

 

Strategic and Economic Implications

 

The DoE’s approval is expected to provide much-needed momentum to the India-US civil nuclear partnership. In January, former US National Security Advisor Jake Sullivan said that the US government was in the process of removing restrictions on Indian nuclear entities to forge deeper energy ties with New Delhi.

 

For India, this agreement provides an opportunity to upgrade its nuclear reactor technology. India’s existing nuclear programme is primarily based on pressurised heavy water reactors (PHWRs), which use natural uranium and heavy water as moderators. However, the global nuclear industry has increasingly moved toward pressurised water reactors (PWRs), the dominant reactor type worldwide. Holtec’s expertise in SMRs will allow India to align its nuclear sector with global trends while scaling up its nuclear power generation capacity.

 

The collaboration comes at a time when China has been aggressively expanding its nuclear energy sector, particularly in SMRs, as part of its outreach to developing nations. India and the US could counter China’s growing influence in the nuclear sector by jointly developing SMRs, enhancing energy security and global competitiveness.

 

Holtec has already indicated that it can rapidly expand its non-nuclear manufacturing unit in Dahej, Gujarat, to support SMR production. If manufacturing plans are approved, the company expects to double its workforce within a year.

 

The approval signals a shift in India-US nuclear collaboration, but further challenges remain. India must address legal and liability concerns to attract more foreign investment in its nuclear sector. Meanwhile, Holtec’s SMR-300 design, one of seven advanced reactor models supported by the US Department of Energy, is still undergoing regulatory review in the UK and Canada.