Why in news?

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.

What’s in today’s article?

• Large-Scale Localisation & Technology Transfer
• Upgrading Reactor Specialisation
• Other Benefits

Large-Scale Localisation & Technology Transfer

• 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.

Upgrading Reactor Specialisation

• The new nuclear deal provides India with an opportunity to modernize its reactor technology, aligning with globally prevalent designs and accelerating capacity expansion.
• Advancing in Small Modular Reactors (SMRs)
  • 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  • While India has experience with 220MWe PHWRs, its reliance on heavy water and natural uranium makes it outdated compared to the dominant pressurised water reactors (PWRs) which use light water.
• Exploring Global Collaborations
  • India’s Department of Atomic Energy is in discussions with Holtec International, a major nuclear technology exporter, to explore potential SMR collaborations.
• Strategic Joint Push in SMRs
  • India and the US are collaborating on 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.

Other Benefits

• 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.