SOURCE: AFI
In a landmark development for India-US nuclear collaboration, the United States Department of Energy (DoE) has granted regulatory approval to Holtec International, a New Jersey-based firm, to design and build nuclear reactors in India. Announced on March 26, 2025, this authorization allows Holtec to share unclassified Small Modular Reactor (SMR) technology with three Indian entities: its regional subsidiary Holtec Asia, Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd (L&T). This breakthrough, nearly two decades after the signing of the India-US Civil Nuclear Agreement in 2007, marks a significant step toward unlocking the commercial potential of the long-stalled nuclear partnership, aligning with India’s clean energy ambitions and deepening bilateral ties.
The DoE’s approval falls under the stringent “10CFR810” regulation of the US Atomic Energy Act of 1954, which governs the transfer of nuclear technology. Previously, US companies were permitted to export nuclear equipment to India but were barred from manufacturing or designing reactors locally—a restriction that hindered progress under the 2007 agreement, also known as the 123 Agreement. The March 26 authorization lifts this barrier, enabling Holtec to collaborate with Indian firms on the development of SMRs, a next-generation nuclear technology poised to transform the global energy landscape.
Holtec, founded in 1986 by Indian-American Kris P. Singh, is a privately-held leader in nuclear equipment manufacturing and decommissioning, with an engineering unit in Pune since 2010 and a manufacturing facility in Dahej, Gujarat. The approval permits the company to transfer its SMR-300 design—a 300-megawatt electric (MWe) pressurized light-water reactor—to Holtec Asia, Tata Consulting Engineers, and L&T, subject to International Atomic Energy Agency (IAEA) safeguards. This move not only strengthens India’s nuclear expertise but also positions it as a potential hub for SMR manufacturing and innovation.
Small Modular Reactors, ranging from 30 to 300 MWe per unit, offer a compact, scalable alternative to traditional large-scale nuclear plants. Holtec’s SMR-300, one of seven advanced reactor designs backed by the US DoE, uses low-enriched uranium fuel and is designed for efficiency, safety, and flexibility. Unlike conventional reactors, SMRs can be factory-built and deployed at diverse locations, including repurposed coal plant sites, making them ideal for India’s energy transition goals. With a $116 million DoE grant in 2020, Holtec is advancing the SMR-300’s design, currently under review in the UK and Canada, with plans for its first deployment in Michigan by 2030.
For India, SMRs promise to address surging energy demands—driven partly by technology sectors like AI and data centers—while supporting the nation’s target of 100 gigawatts of nuclear power by 2047 and net-zero emissions by 2070. The collaboration with Tata Consulting Engineers, a veteran in nuclear engineering, and L&T, a construction and engineering giant, leverages India’s industrial prowess to localize SMR production, reducing costs and enhancing self-reliance.
The DoE approval comes with strict conditions to ensure peaceful use. On March 3, 2025, the Indian government provided assurances that the three authorized entities—Holtec Asia, Tata Consulting Engineers, and L&T—will use the technology solely for civilian nuclear activities under IAEA oversight, prohibiting its application in nuclear weapons, military propulsion, or other non-peaceful purposes. Holtec is also barred from sharing sensitive enrichment technology and must submit quarterly reports to the DoE detailing the technology transfer. The authorization is valid for 10 years, with reviews every five years, and Holtec may seek to amend it later to include state-owned entities like the Nuclear Power Corporation of India Limited (NPCIL), NTPC Ltd, and the Atomic Energy Regulatory Board (AERB), pending further non-proliferation assurances.
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