Indo-US Nuclear Collaboration Challenges

January 8, 2025

Recent discussions surrounding the Indo-US nuclear deal highlight barriers that hinder progress in nuclear collaboration. The US National Security Advisor, Jake Sullivan, has hinted at potential changes, yet two primary legal obstacles remain. These challenges stem from both American regulations and Indian legislation, which complicate the partnership between the two nations.

Legal Barriers in the US

The US Atomic Energy Act of 1954 includes the ‘10CFR810’ authorisation. This regulation permits US nuclear vendors to export equipment to India under strict safeguards. However, it prohibits these vendors from manufacturing or designing nuclear equipment in India. This restriction poses challenge for India, which seeks to participate in the manufacturing value chain of nuclear components.

Indian Legislative Challenges

India’s Civil Liability for Nuclear Damage Act, 2010, aims to create compensation mechanisms for nuclear accident victims. However, this legislation has raised concerns among foreign nuclear firms, including GE-Hitachi and Westinghouse. These companies worry that the law channels liability to equipment suppliers, deterring them from investing in India’s nuclear sector due to potential future liabilities.

The China Angle

Sullivan’s visit also focused on enhancing the innovation alliance through the US-India initiative on Critical and Emerging Technology (iCET). A successful agreement on iCET could facilitate the joint manufacturing of nuclear components for new projects in India. This is particularly crucial as India positions itself as a hub for manufacturing small modular reactors (SMRs), which have a capacity of 30MWe to 300MWe.

Competitive Landscape in SMRs

China is actively pursuing leadership in the SMR sector, viewing these reactors as a means of diplomatic outreach in the Global South. Unlike large reactors, where China has lagged, it aims to dominate the small reactor market. India, with its expertise in smaller reactor types, faces challenges due to the technological gap between its heavy water reactors and the more prevalent light water reactors (LWRs) globally.

Collaborative Opportunities

Industry experts suggest that a collaborative approach could benefit both India and the US. India struggles with technological constraints, while the US confronts high labour costs and rising protectionism. By working together, both nations could enhance their capabilities and better compete with China in the nuclear sector.

10CFR810: Regulation governing US nuclear equipment exports.
PHWR: Pressurised Heavy Water Reactor, India’s primary reactor type.
iCET: Initiative for US-India collaboration on emerging technologies.
SMR: Small Modular Reactor, a focus for future nuclear projects.
LWR: Light Water Reactor, currently the dominant reactor technology.

« Previous Post Next Post »