US-India Nuclear Partnership: SMRs, 123 Agreement, and Policy Challenges

Why in the news?

India and the US reaffirmed their commitment to the 123 Civil Nuclear Agreement and SMR collaboration. Key challenges include amending India’s nuclear laws and securing an exemption from the US ‘810’ regulation, which restricts nuclear technology transfers.

US-India Nuclear Partnership: SMRs, 123 Agreement, and Policy Challenges

US-India Nuclear Energy Partnership: Current Developments

  • India and the US reaffirmed their commitment to energy security through a bilateral partnership.
  • The focus is on making the US a key supplier of oil and gas to India while also addressing trade deficits.
  • A major highlight is the intent to fully implement the US-India 123 Civil Nuclear Agreement.
  • Plans include constructing American-designed nuclear reactors in India, pending legislative amendments.

Legislative Challenges and the 810 Provision:

  • India plans to amend the Atomic Energy Act, 1962, to enable private sector participation in nuclear energy and the Civil Liability for Nuclear Damage Act, 2010 (CLNDA) to ease foreign investment
  • The US seeks India’s commitment to addressing nuclear liability provisions, but political challenges could hinder amendments in Parliament.
  • India also demands an exemption from the US ‘810’ regulation, which restricts American nuclear firms from manufacturing equipment or designing reactors outside the US.
  • Without this exemption, India’s plans for Small Modular Reactors (SMRs) and nuclear component manufacturing face roadblocks.

Significance of SMRs and Future Collaboration:

  • India is engaging with Holtec International, a US firm, to explore SMR collaborations.
  • SMRs, with capacities of 30MWe to 300MWe, are viewed as a key technology for clean energy and global nuclear leadership.
  • Russia and China have already operationalized SMRs, and India aims to develop its own.
  • The success of the Indo-US civil nuclear deal now depends on legislative amendments and easing of US export restrictions.

The US-India 123 Civil Nuclear Agreement:

  • The 123 Agreement facilitates civil nuclear cooperation between India and the US.
  • It covers nuclear reactors and aspects of the nuclear fuel cycle, including enrichment and reprocessing.
  • The agreement enables the US to assist India in nuclear energy projects for peaceful purposes.
  • It enhances India’s nuclear capabilities while ensuring compliance with international safeguards.
  • The focus is on building large-scale nuclear reactors in India through technology transfer and local manufacturing.