Indo-US Nuclear Deal Moves Forward As Holtec Gets Regulatory Clearance

In a major step forward for the Indo-US nuclear deal, the US Department of Energy (DoE) has granted regulatory approval to Holtec International to build and design nuclear reactors in India.

The approval, issued on March 26, 2025, allows Holtec to transfer small modular reactor (SMR) technology to Indian firms.

Holtec will share unclassified SMR technology with three Indian companies: Holtec Asia, Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd.

The approval falls under US regulation ‘10CFR810’ and will be valid for 10 years, with a review every five years.

However, the US has imposed a strict condition.

The jointly designed and manufactured nuclear plants cannot be transferred to any other entity or country without prior US government approval.

Holtec had also sought clearance for Indian state-owned firms, including Nuclear Power Corporation of India Limited (NPCIL) and National Thermal Power Corporation (NTPC).

However, the Indian government withheld approvals until DoE granted permission.

The Indo-US Civil Nuclear Agreement, signed in 2007 by former PM Manmohan Singh and former US President George W Bush, aimed to enable full civil nuclear cooperation.

However, legal and regulatory challenges delayed its implementation for nearly two decades.

Previously, US firms could export nuclear reactors to India but could not design or manufacture nuclear equipment in the country.

In February, PM Narendra Modi and US President Donald Trump reaffirmed their commitment to advancing the deal. They agreed to develop US-designed nuclear reactors in India and strengthen cooperation on energy security.

The Indian government is now considering amendments to the Atomic Energy Act of 1962 to allow private investment in nuclear power. India currently operates 22 nuclear reactors with a total capacity of 6,780 MWe.

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