Focused on energy security, Prime Minister Narendra Modi and President Donald Trump have reiterated their commitment to atomic energy. After their discussions at the White House on Thursday, they pledged to collaborate on US-designed nuclear reactors in India, emphasizing large-scale localization and potential technology transfer.
Since the 2008 India-US Civilian Nuclear Deal, there has been little progress in negotiations, and no new American nuclear reactor has been established in India this century. To break the deadlock, both leaders expressed interest in not only building large reactors but also exploring the development of advanced small modular reactors in India.
A key obstacle has been India’s people-centric nuclear liability framework, which has posed challenges for American nuclear suppliers. In contrast, most global nuclear liability regimes are more favorable to commercial entities.
In their joint statement today, PM Modi and President Trump expressed support for the 2025 Budget’s proposal to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA) in relation to nuclear reactors.
The statement noted that the two leaders “agreed to establish bilateral arrangements under the CLNDA to address civil liability concerns and facilitate collaboration between Indian and U.S. industries in the production and deployment of nuclear reactors.”
Interestingly, when the National Democratic Alliance (NDA) was in opposition in 2010 under Prime Minister Manmohan Singh, they ensured that “people-friendly” provisions were included in the CLNDA. It remains to be seen how the upcoming amendments will balance the interests of both American and Indian stakeholders.
Russians are already working on additional reactors at Kudankulam in Tamil Nadu, continuing their efforts even after India implemented the new nuclear liability framework.
This fresh understanding between the leaders could pave the way for American suppliers to establish reactors in India. Westinghouse Electric Company has been in talks to sell AP 1000 nuclear reactors to India, with New Delhi having identified a Greenfield site to build these large, passively cooled reactors.
The Indian government and Westinghouse are also discussing a project to construct six 1,000-MW nuclear reactors at Kovvada in Andhra Pradesh.
Additionally, there is growing interest in small modular reactors, which have gained traction in recent years. During his meeting with U.S. Security Advisor Michael Waltz, PM Modi also highlighted industrial cooperation and civil nuclear energy, focusing on small modular reactors.
PM Modi and President Trump emphasized that the path forward for enhanced civil nuclear cooperation would include plans to build large U.S.-designed reactors and foster collaboration to develop, deploy, and scale up nuclear power generation using advanced small modular reactors.
Wrapping up the PM’s US trip, Foreign Secretary Vikram Misri said there was an agreement to realise the potential in civil nuclear energy, building US-designed nuclear reactors in India, and taking forward that process also through large-scale localization as well as technology transfer.
“The two countries have been discussing for some time, cooperation in small modular reactors and that is again something that was flagged today. The obstacles in realizing this cooperation in previous years on account of some of the legal provisions that have remained in place in India have already begun to be addressed. You would have noticed the announcements that have been made in the budget in this regard, and we imagine that progress on these issues will enable us to realize the promise of cooperation between India and the US in this very important sector,” he said.
This rapprochement follows a Budget announcement by Finance Minister Nirmala Sitharaman about the creation of a new ‘Nuclear Energy Mission for Viksit Bharat’ and a push for amending laws that are limiting this growth. In her speech, Ms Sitharaman said that the development of at least 100 GW of nuclear energy by 2047 is “essential for our energy transition efforts”.
“In order to foster an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be pursued,” Sitharaman had stated.
India possesses comprehensive capabilities in nuclear technology—from uranium mining and building atomic power plants to reprocessing nuclear fuel. However, the country faces a shortage of uranium resources.
Nuclear energy is considered a sustainable, nearly zero-carbon source for base load power, making it an increasingly popular choice for countries aiming to combat climate change while increasing electricity production.
Sitharaman also announced the creation of a ‘Nuclear Energy Mission for Research & Development of Small Modular Reactors (SMRs)’ with an allocation of Rs 20,000 crore. At least five indigenously developed SMRs are expected to be operational by 2033, she said during her record eighth consecutive budget presentation.
Dr. A.K. Mohanty, Chairman of the Atomic Energy Commission, had previously stated to NDTV that achieving 100 GW by 2047 is “very achievable” given India’s current technical capabilities. However, he noted that securing land and obtaining the necessary atomic fuel could be limiting factors. “The private sector can help increase capacity by building captive atomic plants, especially small modular reactors,” he added.
According to the Department of Atomic Energy, India has installed a total nuclear power capacity of 8,180 MW, with 24 operational reactors. Among these, 20 are Pressurised Heavy Water Reactors (PHWRs), and four are Light Water Reactors (LWRs).
Given its heavy energy consumption, India is increasingly turning to nuclear energy as a low-carbon solution for base load power generation.
