The March 26 clearance allows Holtec to share unclassified SMR technology with Holtec Asia, Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd. The approval is valid for 10 years, with a review at the 5-year mark, and strictly limits the technology’s use to peaceful applications under IAEA safeguards.

This landmark decision is expected to strengthen India’s nuclear capacity, localise SMR manufacturing, and bolster New Delhi’s role in the global nuclear energy ecosystem. Holtec must submit quarterly reports to the DoE and cannot transfer the technology to any third party—including other Indian or foreign entities—without US consent.

Despite the breakthrough, India has yet to provide non-proliferation assurances for three state entities—NPCIL, NTPC, and the AERB. Once these assurances are in place, Holtec may seek to include them in its authorisation.

Progress on the civil nuclear front had been delayed due to India’s Civil Liability for Nuclear Damage Act (2010), which held suppliers liable in case of accidents—discouraging global players like GE-Hitachi and Areva. In response, India has proposed amendments to the Atomic Energy Act, 1962, to encourage private sector participation in nuclear power.

As part of its ?200 billion Nuclear Energy Mission, announced in Union Budget 2025, India plans to install five SMRs by 2033, aiming for 100 GW of nuclear power by 2047 to support its net-zero target by 2070.

This strategic collaboration not only strengthens India’s shift toward pressurised water reactors (PWRs)—the global industry standard—but also serves as a counterweight to China’s growing nuclear footprint, particularly in SMRs across developing nations.

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