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 significant advancement for India-US nuclear cooperation, the US Department of Energy (DoE) has granted Holtec International a crucial regulatory approval to transfer small modular reactor (SMR) technology to India. This authorization, issued on March 26, 2025, resolves a major obstacle that had impeded the commercial implementation of the 2007 India-US civil nuclear agreement, as reported by The Indian Express.

The approval allows Holtec to share unclassified SMR technology with three Indian entities: Holtec Asia (its regional subsidiary), Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd. This initiative is anticipated to enhance India’s nuclear expertise, localize SMR manufacturing, and bolster New Delhi's standing in the global SMR market.

The authorisation comes with specific conditions. It is valid for ten years and will be reviewed after five years. The technology must be utilised solely for peaceful nuclear activities under International Atomic Energy Agency (IAEA) safeguards.

Holtec is mandated to submit quarterly reports to the DoE detailing the technology transfer and assistance provided. Furthermore, the information shared cannot be disclosed to third parties, including other Indian entities or foreign nations, without prior consent from the US. Importantly, the technology is prohibited from being used for military purposes, such as nuclear weapons or naval propulsion.

Despite this progress, India has yet to provide non-proliferation assurances for three state-owned entities: Nuclear Power Corporation of India Limited (NPCIL), NTPC Ltd, and the Atomic Energy Regulatory Board (AERB). Should these assurances be granted in the future, Holtec may seek to amend its authorization to include these organisations.

The India-US Civil Nuclear Agreement, also known as the 123 Agreement, was established in 2007 to facilitate comprehensive civil nuclear energy cooperation between the two countries. However, advancements have been slow due to various legal and regulatory hurdles.

A significant challenge has been India's Civil Liability for Nuclear Damage Act (2010), which holds suppliers liable for damages resulting from nuclear accidents. This provision has deterred foreign nuclear vendors like GE-Hitachi and Westinghouse from investing in India's nuclear sector. In response, the Indian government has proposed amendments to the Atomic Energy Act of 1962 to encourage private sector participation in nuclear power generation.

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

The DoE’s approval is expected to invigorate the India-US civil nuclear partnership significantly. In January, former US National Security Advisor Jake Sullivan indicated that the US government was working on removing restrictions on Indian nuclear entities to strengthen energy ties with New Delhi. 

For India, this agreement presents an opportunity to modernize its nuclear reactor technology. Currently, India's nuclear program primarily relies on pressurized heavy water reactors (PHWRs), which utilize natural uranium and heavy water as moderators. In contrast, the global nuclear industry is increasingly favouring pressurized water reactors (PWRs), which are now the dominant reactor type worldwide. Holtec’s expertise in SMRs will enable India to align its nuclear sector with global trends while enhancing its nuclear power generation capacity.

This collaboration emerges at a time when China is aggressively expanding its nuclear energy sector, particularly in SMRs, as part of its outreach strategy toward developing nations. By jointly developing SMRs, India and the US could counter China's growing influence in the nuclear sector while enhancing energy security and global competitiveness.

Holtec has expressed its readiness to rapidly expand its non-nuclear manufacturing facility in Dahej, Gujarat, to support SMR production. If these manufacturing plans receive approval, Holtec anticipates doubling its workforce within a year. While this approval marks a pivotal shift in India-US nuclear collaboration, further challenges persist. India must address legal and liability concerns to attract more foreign investment in its nuclear sector. Additionally, Holtec’s SMR-300 design remains under regulatory review in both the UK and Canada.

IE Report