Renewed India-US Nuclear Cooperation, Large-Scale Localization, SMRs, and Strategic Gains

18-02-2025

04:37 AM

1 min read

What’s in Today’s Article?

The renewed US-India nuclear cooperation signals a diplomatic win for India amid challenging trade discussions with the new US administration.
Three key gains emerge: a reaffirmed commitment to the 123 Civil Nuclear Agreement, recognition of past stagnation, and a push to maximize the benefits of the Indo-US nuclear deal signed two decades ago.

Despite the US’s protectionist trade stance, the renewed nuclear cooperation includes a commitment to jointly build American-designed reactors in India.
The pact emphasizes local manufacturing and potential tech transfer, deviating from Washington’s usual push to retain manufacturing within the US.

The new nuclear deal provides India with an opportunity to modernize its reactor technology, aligning with globally prevalent designs and accelerating capacity expansion.

India aims to leverage private sector expertise to enter the growing SMR segment.
While India has experience with 220MWe PHWRs, its reliance on heavy water and natural uranium makes it outdated compared to the dominant pressurised water reactors (PWRs).

India’s Department of Atomic Energy is in discussions with Holtec International, a major nuclear technology exporter, to explore potential SMR collaborations.

India and the US are collaborating on small modular reactors (SMRs) to compete with China, which is emerging as a leader in this field.
SMRs are a critical tool for both countries to expand their influence in the Global South, where China has capitalized on the opportunity in industries like electric vehicles.

Overcoming Technological and Economic Challenges
- India’s technological limitations and the US’s high labor costs make it challenging to compete with China independently.
- The partnership opens up India’s nuclear sector, potentially ending the country’s technology isolation and boosting its role in the global nuclear market.
Holtec International’s Role and Investments
- Holtec International plans to expand its operations in India, including establishing a nuclear technology campus in Pune and a specialty manufacturing plant.
- The company anticipates significant foreign investment in India’s nuclear sector, driving economic growth.
Reviving Nuclear Cooperation
- The 123 agreement between India and the US, signed in 2007, aimed to foster full civil nuclear energy cooperation but faced obstacles due to legislative challenges.
- India’s efforts to amend laws could break this deadlock, leading to joint manufacturing and SMR projects.
SMRs: The Future of Nuclear Energy
- SMRs (30MWe to 300MWe) are gaining prominence as a sustainable and commercially viable option in the energy sector.
- Holtec’s SMR-300, supported by the US Department of Energy, is in early design stages, with potential deployments in the UK and Canada.
- Other Western competitors include Rolls-Royce, NuScale, Westinghouse, and GE-Hitachi.

Q1. What is the 123 Civil Nuclear Deal?

Ans. The 123 Civil Nuclear Deal between India and the US, signed in 2007, facilitates peaceful nuclear cooperation and technology transfer.

Q2. Which is the first nuclear project in India?

Ans. India’s first nuclear project was the Tarapur Atomic Power Station, commissioned in 1969, located in Maharashtra.

Q3. What is a small modular reactor?

Ans. Small Modular Reactors (SMRs) are compact nuclear reactors (30MWe to 300MWe) designed for cost-effective and scalable energy production.

Q4. Do any small modular reactors exist?

Ans. Yes, SMRs are under development, with prototypes like Holtec’s SMR-300 being planned for deployment in countries like the UK.

Q5. What is a pressurized water reactor (PWR)?

Ans. A Pressurized Water Reactor (PWR) uses water at high pressure to transfer heat from the reactor core, commonly used in nuclear power plants.

Source: IE | FE