US Greenlights Holtec’s SMR Technology for India – A Nuclear Energy Revolution
- India International Affairs North America South Asia
Shreya Naskar- 0
- 6 minutes read
India has taken a major step forward in its nuclear energy ambitions as a US-based company, Holtec International, has received regulatory approval to build and design nuclear reactors in the country. This landmark development comes after years of stagnation due to India’s Civil Liability for Nuclear Damage Act (CLNDA) of 2010, which has been a major hurdle in attracting foreign investment in the nuclear sector. The recent clearance marks a significant milestone in India’s journey toward clean energy and reducing dependence on fossil fuels. One of the primary reasons for the lack of progress in India’s nuclear agreements with foreign firms has been the stringent provisions
of the CLNDA. Unlike global norms, which place liability for nuclear accidents primarily on operators, India’s law holds suppliers accountable for any nuclear mishaps. This has discouraged major international nuclear firms from investing in India, fearing heavy financial risks in case of an accident. With this unprecedented regulatory clearance from the US Department of Energy (DoE), India is now set
to receive critical nuclear technology from Holtec, under certain conditions, thereby overcoming a key bottleneck.
Why Small Modular Reactors (SMRs)?
Small Modular Reactors (SMRs) represent the next generation of nuclear power technology, offering several advantages over traditional large-scale nuclear plants. Key benefits include: Unlike traditional reactors, SMRs can be deployed in areas where large-scale nuclear plants may not be feasible. SMRs can be manufactured as modular units in a factory setting and then shipped to the site for installation, significantly reducing construction costs and timelines. The design of SMRs incorporates passive safety measures that reduce the risk of accidents, making them a safer alternative. These reactors consume less fuel while maintaining high efficiency, making them a sustainable solution for long-term energy needs. While the clearance is a breakthrough, it comes with specific conditions. The US government has mandated that the transferred SMR technology can only be used for peaceful nuclear activities under the International Atomic Energy Agency (IAEA) safeguards. India has assured that the technology will not be used for any nuclear weapons program or military applications. This assurance aligns with India’s commitment to non-proliferation and peaceful nuclear expansion. India’s Nuclear Energy Mission: Aiming for 100 GW by 2047.
The regulatory clearance coincides with India’s ambitious Nuclear Energy Mission, which aims to achieve 100 GW of nuclear power capacity by 2047. Announced by Finance Minister Nirmala Sitharaman in the Budget 2025 speech, the mission outlines several key initiatives: Encouraging Private Sector Participation – India is opening doors for private companies to invest in nuclear power projects, breaking the monopoly of state-owned Nuclear Power Corporation of India Limited (NPCIL), Legislative Reforms – Amendments to nuclear liability laws and other regulations will provide a more favourable environment for foreign and domestic investors, Operationalizing SMRs by 2033 – The government plans to expedite the deployment of SMRs, making them a key component of India’s clean energy transition.
US-India Collaboration: Strategic and Economic Implications
The US granting Holtec the green light to transfer nuclear technology to India marks a strategic shift in global geopolitics. Several factors contribute to this development:
- Countering China’s Growing Influence – With China aggressively expanding its nuclear energy infrastructure and offering SMR technology to other countries, the US sees India as a key ally to balance power dynamics in the Indo-Pacific region.
- Strengthening India-US Ties – The move underscores Washington’s recognition of India’s emergence as a global leader in technology, trade, and energy security.
- Enhancing India’s Energy Security – As India transitions to cleaner energy sources, a robust nuclear power infrastructure will help meet rising electricity demand while cutting carbon emissions.
Despite this progress, several challenges remain:
- High Initial Investment – Setting up SMRs requires substantial capital investment, which could be a hurdle for private players.
- Public Perception and Regulatory Hurdles – Nuclear energy still faces scepticism in India due to past safety concerns and regulatory bottlenecks.
- Infrastructure Development – Efficient logistics and supply chains must be established to transport prefabricated SMR units to different locations.
The clearance for Holtec to share SMR technology with Indian firms marks a historic step in India’s nuclear journey. By overcoming the long-standing hurdle of nuclear liability laws, India has positioned itself as a major player in the global nuclear energy sector. With ambitious goals set for 2047 and active participation from both public and private entities, India is on track to revolutionize its energy landscape. This partnership also serves as a strategic move in global geopolitics, reinforcing India’s role as a counterweight to China’s expanding nuclear footprint. The coming years will be crucial in determining how effectively India can implement this breakthrough to fulfil its clean energy ambitions.
