U.S. Firm Approved to Build Nuclear Reactors in India

May 2025

The U.S. Department of Energy granted Holtec International the regulatory clearance to build nuclear reactors in India. On March 26, the department approved Holtec’s plan to share its small modular reactor 300 technology with three Indian entities: Holtec Asia, Larsen & Toubro, and Tata Consulting Engineers.

The clearance was granted under Part 810, Title 10, of the Code of Federal Regulations, which contains a specific authorization requirement for transfers involving “sensitive nuclear technologies.” Part 810 was last changed in 2015, in its most significant update since 1986, to require concurrence from the State Department and consultations with the Nuclear Regulatory Commission, Commerce Department, and Defense Department.

The Holtec deal comes 18 years after the United States and India adopted a Section 123 agreement on civil nuclear cooperation during the administration of President George W. Bush. These agreements set the terms for U.S. civil nuclear cooperation with other nations, ensuring that transfers of U.S.-origin materials and technology align with nonproliferation policies. The U.S.-India 123 agreement was particularly controversial because of India’s status as a nuclear-armed state that never joined the nuclear Nonproliferation Treaty.

The regulatory clearance for Holtec’s reactor transfers follows statements Jan. 6 by former National Security Advisor Jake Sullivan, in which he stated that the United States would soon remove restrictions on several India nuclear entities to bolster progress on the 2007 deal.

On Jan. 16, the Commerce Department's Bureau of Industry and Security removed three Indian state-owned entities from its control list. These entities, Indian Rare Earths, Indira Gandhi Atomic Research Center, and Bhabha Atomic Research Center, are all involved with both civilian and military components of India's nuclear programs.—LIPI SHETTY