New Delhi:
In a significant breakthrough in bilateral relations, Prime Minister Narendra Modi and President Donald Trump have reaffirmed their commitment to advancing the India-US civil nuclear deal. This agreement, reached during their talks at the White House on February 14, 2025, paves the way for the construction of American-designed nuclear reactors in India, marking a substantial step forward in energy cooperation between the two nations.
The cooperation aims to overcome the long-standing hurdles posed by India’s nuclear liability laws, which have hindered the implementation of the civil nuclear deal since its inception in 2008. The new agreement includes plans for large-scale localization and possible technology transfer, as well as the development of advanced small modular reactors (SMRs).
Prime Minister Modi and President Trump’s agreement to move forward with the India-US civil nuclear deal is a pivotal moment in the bilateral relationship. The talks at the White House emphasized the importance of energy security and the role that nuclear energy can play in addressing India’s growing energy needs. The deal involves building US-designed nuclear reactors in India, a project that has been stalled due to legal and regulatory issues.
A major obstacle to the cooperation has been India’s Civil Liability for Nuclear Damage Act (CLNDA), which has been seen as too stringent by American nuclear suppliers. However, recent announcements in the Budget 2025 to amend the CLNDA and the Atomic Energy Act of 1962 are expected to facilitate the collaboration between Indian and US industries in the production and deployment of nuclear reactors. These amendments are crucial for reconciling both American and Indian interests and ensuring the smooth implementation of the civil nuclear deal.
The agreement highlights the importance of large-scale localization and possible technology transfer for nuclear reactors. This approach is designed to enhance India’s capabilities in nuclear technology, from uranium mining to the construction of atomic power plants. The cooperation also includes the development and deployment of SMRs, which have gained significant traction in recent years due to their efficiency and scalability.
Westinghouse Electric Company has been negotiating to sell AP 1000 nuclear reactors to India, with a notable project to build six 1,000-MW reactors at Kovvada in Andhra Pradesh. Additionally, the Indian government has proposed a ‘Nuclear Energy Mission for research & development of Small Modular Reactors (SMR)’ with an outlay of Rs 20,000 crore, aiming to operationalize at least five indigenously developed SMRs by 2033.
India’s energy transition efforts are heavily reliant on nuclear energy, given its status as a nearly zero-carbon emission source for base load power. The government aims to develop at least 100 GW of nuclear energy by 2047, a target that is considered achievable given India’s current technical capabilities. However, challenges such as land acquisition and securing appropriate atomic fuel remain.
Currently, India has 24 operating nuclear reactors with a total capacity of 8,180 MW. The cooperation with the US is expected to significantly boost this capacity, addressing India’s growing energy demands while reducing carbon emissions. The amendments to the Atomic Energy Act and CLNDA are expected to facilitate greater private sector participation, which is crucial for augmenting India’s nuclear power capacity.
