India-US Energy and Nuclear Partnership
India and the United States have reiterated their commitment to enhancing their bilateral Energy Security Partnership, emphasizing the role of Washington as a significant supplier of oil and gas to India. However, a more strategic focus is on realizing the US-India 123 Civil Nuclear Agreement, with plans to collaborate on building American-designed nuclear reactors in India.
Legislative Amendments and Bilateral Arrangements
- The Indian Government announced plans to amend the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010 (CLNDA).
- These amendments aim to address civil liability issues and facilitate Indian-US industry collaboration in nuclear reactor production and deployment.
The '810' Roadblock
- India seeks an exemption from the US '810' authorization under the US Atomic Energy Act of 1954, which restricts American companies from manufacturing nuclear equipment outside the US.
- This exemption is critical for India’s ambitions with Small Modular Reactors (SMRs) and co-production of nuclear components domestically.
Proposed Amendments to India's Laws
- The Atomic Energy Act 1962: Proposed changes aim to allow private sector participation in nuclear power operations and SMR sector entry.
- Civil Liability for Nuclear Damage Act 2010: The act outlines compensation mechanisms for nuclear accidents, channeling liability to equipment suppliers, deterring foreign investment.
Collaboration on Small Modular Reactors (SMRs)
- India's Department of Atomic Energy (DAE) is exploring partnerships with Holtec International for SMR components.
- The '810' authorization is crucial for advancing these collaborations and leveraging the Indo-US civil nuclear deal's commercial potential.
Significance of SMRs
- SMRs are vital for maintaining nuclear energy's commercial viability, with capacities ranging from 30MWe to 300MWe per unit.
- India aims to lead in the small reactor space, aligning with its clean energy transition goals and foreign policy strategies.
- Globally, SMR projects include Russia's Akademik Lomonosov and China's HTR-PM, with several Western companies, like Holtec and Rolls-Royce, advancing their SMR designs.
Conclusion
The partnership between India and the US is poised to unlock significant nuclear collaboration, provided legislative challenges are met and exemptions like the '810' authorization are granted. These steps are crucial for India's SMR ambitions and the broader energy security framework.