US clears nuclear tech transfer to India

In a significant step forward for the long-delayed Indo-US nuclear deal, the US Department of Energy (DoE) has approved Holtec International to transfer small modular reactor (SMR) technology to India. This move allows Holtec to collaborate with Indian firms and marks a shift in US policy, enabling nuclear technology development within India. However, key restrictions remain, including limitations on technology transfer to third parties. The decision aligns with India’s broader push for clean energy and ongoing discussions to amend laws restricting private investments in the nuclear sector.

The Indo-US nuclear deal has made a major breakthrough as the US Department of Energy (DoE) granted regulatory clearance to Holtec International on March 26, 2025. This approval allows the American firm to transfer small modular reactor (SMR) technology to India, marking a significant step in nuclear cooperation between the two nations. Holtec will collaborate with its regional subsidiary, Holtec Asia, along with Larsen & Toubro Ltd and Tata Consulting Engineers Ltd, to develop these reactors.

However, the US has imposed a key restriction—India cannot transfer the jointly developed nuclear power plants to any other Indian entity or third countries without prior US approval. Holtec also sought to partner with India’s state-owned Nuclear Power Corporation of India Limited (NPCIL), National Thermal Power Corporation (NTPC), and the Atomic Energy Regulatory Board (AERB). However, India had not cleared these collaborations earlier, as Holtec had not yet received DoE approval.

The Indo-US Civil Nuclear Agreement, or the 123 Agreement, was originally signed in 2007 by Prime Minister Manmohan Singh and US President George W. Bush. However, legal and regulatory challenges delayed its implementation for nearly two decades. Until now, US firms could only export nuclear reactors and equipment to India, not design or manufacture them domestically.

In February 2025, Prime Minister Narendra Modi and US President Donald Trump met to discuss strategic initiatives, including nuclear energy cooperation. They reaffirmed their commitment to the 2007 agreement and announced plans to develop US-designed nuclear reactors in India. They emphasized that energy security is crucial for economic growth, social well-being, and technological innovation.

To advance these plans, India is considering amending the Atomic Energy Act of 1962, which currently prohibits private investments in nuclear power. India operates 22 nuclear reactors with a total capacity of 6,780 MWe, including 18 Pressurized Heavy Water Reactors (PHWRs) and four Light Water Reactors (LWRs). In February 2024, the Kakrapar Unit 4 was commissioned, reinforcing India’s focus on clean and sustainable energy.