US-India 123 Civil Nuclear Agreement

Recently, the India and the US reaffirm commitment to the bilateral Energy Security Partnership to make the US a leading oil and gas supplier to India.

• Focus: To fully realise the US-India 123 Civil Nuclear Agreement, including building American-designed nuclear reactors in India with localisation and possible technology transfer.
• About US-India 123 Civil Nuclear Agreement: The “Agreement for Co-operation between the Government of India and the United States of America concerning Peaceful Uses of Nuclear Energy.”
• Legal Basis: Section 123 of the US Atomic Energy Act, 1954, hence called the 123 Agreement.
• Objective: Full civil nuclear energy cooperation, covering nuclear reactors, enrichment, and reprocessing.
• Legislative Amendments in India:

o Atomic Energy Act, 1962: Proposed amendment to allow private sector participation in nuclear power plant operations, currently limited to NPCIL and joint ventures.

o Civil Liability for Nuclear Damage Act, 2010 (CLNDA): Originally created to compensate victims of nuclear accidents → Foreign firms cite it as a barrier to investment due to liability concerns → Amendments planned to facilitate US-India collaboration in nuclear reactors.

• US Legislative Challenge – ‘810’ Roadblock: Part 810 of Title 10, US Code of Federal Regulations restricts US companies from manufacturing nuclear equipment or performing nuclear design work outside the US.
• India’s Demand: Seeks an exception to enable SMR manufacturing in India.
• Importance of SMRs (Small Modular Reactors) for India: Supports India’s clean energy transition and technology-led foreign policy.
• Global SMR Projects: Russia – Akademik Lomonosov (2020) & China – HTR-PM (2023)
• Western SMR Development: Companies include Holtec, Rolls-Royce, NuScale, Westinghouse, and GE-Hitachi.