US grants historic approval for nuclear technology transfer to India, boosting civil nuclear deal: Report

This development signals a significant step in India’s nuclear journey, as it seeks to meet growing energy demands while contributing to the global clean energy transition.

In a landmark move, the US Department of Energy (DoE) has granted unprecedented regulatory clearance for a US company to build and design nuclear reactors in India, paving the way for the commercial potential of the India-US civil nuclear deal, which was signed two decades ago. Holtec International, a US-based firm, received approval on March 26, 2025, to transfer unclassified small modular reactor (SMR) technology to three Indian companies, as reported by The Indian Express.

The clearance, granted under the restrictive “10CFR810” regulation of the US Atomic Energy Act, allows Holtec to transfer technology to its Indian regional subsidiary Holtec Asia, as well as Tata Consulting Engineers Ltd. and Larsen & Toubro Ltd. Holtec, founded by Indian-American Kris P. Singh, has been operating a manufacturing unit in Dahej, Gujarat, and an engineering unit in Pune since 2010.

While Holtec’s original request also included Nuclear Power Corporation of India Ltd. (NPCIL), NTPC Ltd., and the Atomic Energy Review Board (AERB), the Indian government did not provide the necessary non-proliferation assurances for these state-owned entities, the The Indian Express report added. However, Holtec could request an amendment to include them as authorised end-users in the future. The approval is valid for 10 years, subject to reviews every five years.

The authorisation is contingent on assurances from the Indian government, which committed on March 3, 2025, that the private entities receiving the technology would use it solely for peaceful nuclear activities under International Atomic Energy Agency (IAEA) safeguards and not for military or nuclear explosive purposes. According to The Indian Express report, Holtec will also be required to submit quarterly reports to the DoE detailing the technology transfer.

This move resolves a significant roadblock, as previous regulations had prevented US companies from manufacturing nuclear equipment or conducting nuclear design work in India. The March 26 authorisation is seen as a key step forward for both India and the US in the development of small modular reactors, which are becoming increasingly important in the global nuclear energy market.

This development comes shortly after the announcement of renewed nuclear cooperation between India and the US, aimed at fully realising the US-India 123 Civil Nuclear Agreement. The agreement, signed in 2007, had aimed to facilitate full civil nuclear energy cooperation between the two countries but had seen limited progress until now.

The US-India partnership is expected to significantly enhance India’s nuclear sector, especially in reactor design and manufacturing capabilities. India, which has traditionally focused on heavy water reactors, is looking to modernise its reactor technology to align with global trends. Small modular reactors (SMRs), which are seen as a growing segment of the nuclear energy market, could offer India the chance to leapfrog existing technologies and play a key role in the global SMR space.

Holtec has also expressed its readiness to expand its workforce at its Gujarat plant, should manufacturing plans proceed, adding to the potential for economic and technological growth in India’s nuclear sector, The Indian Express report added.

The challenges, however, are far from over. According to the Indian Express report, India still faces legal hurdles, such as the Civil Liability for Nuclear Damage Act, 2010, which has deterred foreign players from investing in the nuclear sector. Additionally, amendments to the Atomic Energy Act are needed to allow private companies to enter the nuclear generation business, a move the Indian government has committed to addressing.

This development signals a significant step in India’s nuclear journey, as it seeks to meet growing energy demands while contributing to the global clean energy transition. Holtec’s SMR-300 design, one of the seven advanced reactor designs supported by the US Department of Energy, is already in the early design stages for deployment in the UK and Canada.