India’s pitch to US nuclear mission: Scale up capacity, small modular reactors key

What Happened

• India has pitched to the US-side of the bilateral nuclear energy cooperation framework to scale up nuclear capacity, with small modular reactors (SMRs) identified as the primary vehicle for this expansion.
• The US Department of Energy (DoE) granted Holtec International regulatory approval in March 2025 to transfer SMR technology to India, clearing a key commercial implementation barrier under the 2008 India-US Civil Nuclear Agreement.
• NTPC is in discussions with multiple international partners — including EDF (France), Rosatom (Russia), Westinghouse (US), GE Vernova (US), Holtec International (US), and Korea Hydro and Nuclear Power — to build SMRs in India.
• The Union Budget 2025–26 launched a dedicated Nuclear Energy Mission with an allocation of ₹20,000 crore for SMR research and development, targeting at least 5 indigenously designed and operational SMRs by 2033.
• The pitch aligns with India's broader clean energy transition goals and its positioning as a Trusted Nuclear Provider under frameworks such as iCET (Initiative on Critical and Emerging Technology) and civil nuclear partnerships with the US and France.

Static Topic Bridges

Small Modular Reactors (SMRs): Technology and Policy Significance

Small Modular Reactors (SMRs) are advanced nuclear reactors with an electrical output capacity of up to 300 MW(e) per unit — approximately one-third the capacity of a conventional large reactor. The IAEA defines "small" reactors as those below 300 MWe. SMRs are "modular" because their components can be factory-fabricated and transported to deployment sites, reducing on-site construction time and costs. There are more than 80 SMR designs globally at various stages of development. Russia's Akademik Lomonosov (two 35 MWe units) became the world's first commercially operating floating SMR plant in May 2020. SMRs are central to India's nuclear strategy because they can be deployed incrementally, suit India's grid infrastructure in smaller states, and can potentially use thorium-based fuel cycles in advanced designs.

India-US Civil Nuclear Agreement (123 Agreement), 2008

The India-US Civil Nuclear Agreement, formally known as the "123 Agreement" (named after Section 123 of the US Atomic Energy Act of 1954 which governs nuclear cooperation agreements), was signed in October 2008 following the July 2005 framework announced by PM Manmohan Singh and President George W. Bush. The deal ended a three-decade US moratorium on nuclear trade with India — imposed after India's 1974 Pokhran test — by granting India access to civilian nuclear technology and fuel without India being a signatory to the Nuclear Non-Proliferation Treaty (NPT). The enabling US domestic legislation was the Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act, 2006 (Hyde Act). India also obtained a waiver from the Nuclear Suppliers Group (NSG) in September 2008.

Civil Liability for Nuclear Damage Act, 2010

The Civil Liability for Nuclear Damage Act (CLNDA), 2010 governs liability in the event of a nuclear accident in India. It diverges from the international norm (the Vienna Convention on Civil Liability for Nuclear Damage and the Paris Convention) by including Section 17(b), which allows the nuclear operator to seek recourse against equipment suppliers in case of accidents caused by supply defects. International nuclear suppliers — particularly US companies — have resisted entering India's market because this provision exposes them to potentially unlimited liability, contrary to the global operator-liability regime where only the plant operator is legally responsible. This has been the primary commercial obstacle delaying implementation of the 2008 agreement for 17 years.

iCET: Initiative on Critical and Emerging Technology

The iCET (Initiative on Critical and Emerging Technology) was jointly launched by India and the US in January 2023 during the National Security Advisors' meeting in Washington. It provides a government-to-government framework to deepen cooperation across six domains: AI and quantum technologies, defense innovation and technology cooperation, next-generation telecommunications, space, semiconductor supply chains, and advanced biology and bioeconomy. Civil nuclear cooperation — particularly SMRs — has been positioned as an emerging pillar under iCET, reflecting its dual importance for energy security and strategic industrial partnership.

India's Three-Stage Nuclear Programme

India's civil nuclear programme, conceived by Dr. Homi J. Bhabha in the 1950s, has three stages designed to leverage India's abundant thorium reserves. Stage 1: Pressurised Heavy Water Reactors (PHWRs) using natural uranium produce plutonium as a by-product. Stage 2: Fast Breeder Reactors (FBRs) use Stage 1 plutonium as fuel and breed more fissile material, including U-233 from thorium. Stage 3: Advanced Heavy Water Reactors (AHWRs) use the U-233 from Stage 2 along with thorium. India's Department of Atomic Energy (DAE) operates under the Atomic Energy Act, 1962, which reserves nuclear power generation for the public sector.

Key Facts & Data

• SMR capacity threshold (IAEA): up to 300 MW(e) per unit
• India's Nuclear Energy Mission budget: ₹20,000 crore (Union Budget 2025–26)
• India's target: 5 indigenous SMRs operational by 2033
• Holtec International (US) approved by DoE for SMR technology transfer to India: March 2025
• Indian partners for Holtec SMR project: Tata Consulting Engineers and Larsen & Toubro (L&T)
• India-US 123 Agreement signed: October 10, 2008
• NSG waiver for India: September 2008
• CLNDA enacted: August 2010; Section 17(b) remains the key commercial obstacle
• India ratified the Convention on Supplementary Compensation (CSC): 2016
• India's current nuclear capacity: 22 reactors (approximately 7,480 MWe) operated by NPCIL
• iCET launched: January 2023
• Russia's Akademik Lomonosov: world's first floating SMR plant; commercial operation began May 2020