Explained: How President Trump can help fuel India’s nuclear power dream

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Prime Minister Narendra Modi has secured a commitment from President Donald Trump to build US-designed nuclear reactors in India. The technology transfer for these reactors is of prime importance to India, in order to scale up nuclear energy’s potential to meet the rising demand for cleaner power.

Prior to his meeting with President Trump, PM Modi during his France visit sought a similar commitment from President Emmanuel Macron, for mutually developing small modular nuclear reactors.

India’s current nuclear power capacity is 8,180 MW, which is projected to grow to 22.48 gigawatts (GW) by 2031-32 and eventually to 100 GW by 2047. To achieve this, India has announced a National Nuclear Energy Mission with a budgetary outlay of Rs 20,000 crore, and for which laws are to be amended, so as to include private participation.

Also Read: In a historic first, India invites private participation in nuclear power.

During his meeting with PM Modi, President Trump once again committed to support India's full membership in the International Energy Agency (IEA), a Paris-based organization that is central to global energy security and policy. The IEA is bullish on a global nuclear power resurgence, in order to meet the energy needs of countries reliably, as renewable power continues to suffer from intermittency because of lack of long-term storage solutions.

Can Trump help India’s nuclear power aspirations?

President Trump has agreed to facilitate building of American-designed nuclear reactors in India under the framework of the civil nuclear deal sealed between the two nations in 2018.

The US is a major force, with many companies such as NuScale Power developing small modular reactors (SMRs). US nuclear reactor makers General Electric and Westinghouse have also shown interest in setting up nuclear reactors in India.

“The leaders announced their commitment to fully realize the US-India 123 Civil Nuclear Agreement by moving forward with plans to work together to build US-designed nuclear reactors in India through large scale localisation and possible technology transfer,” the press statement issued by the Ministry of External Affairs on February 14 said.

Also Read: Budget announces National Nuclear Energy Mission as India chases clean energy.

The recent Budget announcement to take up amendments to India’s Atomic Energy Act as well as the Civil Liability for Nuclear Damage Act (CLNDA) for nuclear reactors were welcomed by the Trump administration.

After the Modi-Trump meet, India and the US are likely to sign more detailed bilateral agreements for nuclear reactors, after the Civil Liability for Nuclear Damage Act (CLNDA) is amended in the Parliament, senior government officials told Moneycontrol. This would be for production and deployment of nuclear reactors and the necessary technology transfer, wherever deemed fit.

What is the 123 Civil Nuclear Agreement?

The ‘123 Agreement’ gets its name from Section 123 of the US Atomic Energy Act of 1954, which outlines the requirements for agreements for peaceful nuclear cooperation between the United States and other countries.

The 123 Agreement, also known as the Indo-US Nuclear Deal, was signed in 2008 between the then Indian Prime Minister Manmohan Singh and US President George W Bush.

The agreement ended a regime of technology denial that was in place for over 30 years, ending India’s nuclear isolation. It also opened the doors for India to have civil nuclear cooperation as an equal partner with the USA and the rest of the world.

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For India, the agreement was significant as it enabled the country to meet the twin challenge of energy security and environmental sustainability, while also providing for development of public as well as private industries.

Why is India chasing small modular reactors?

India is prioritising small modular reactors (SMRs) over conventional nuclear power plants due to their scalability, enhanced safety features, cost-effectiveness, flexibility, and environmental benefits.

To lay the groundwork for small nuclear power plants in India, the government has sanctioned 10 indigenous 700 MW reactors to be implemented in fleet mode, to promote indigenous nuclear power technologies. Further, in the 2024 Union Budget, Centre had announced partnership with the private sector for setting up Bharat Small Reactors, and carrying out R&D for the same as well as newer technologies.

Also Read: Explained: India's roadmap to achieve 100 GW nuclear power capacity by 2047.

India’s nuclear energy landscape is currently regulated by state-owned entities like Nuclear Power Corporation of India Ltd (NPCIL) holding exclusive rights over nuclear power generation.