Prime Minister Narendra Modi and US President Donald Trump have resolved to advance cooperation in the civil nuclear domain, reaffirming their commitment to realising the US-India 123 Civil Nuclear Agreement.
The two leaders discussed the matter during their meeting at the White House on Thursday, citing the significance of the landmark nuclear deal signed 16 years ago.
A joint statement issued after the talks outlined plans to move forward with the construction of American-designed nuclear reactors in India, bolstered by large-scale localisation and potential technology transfer.
The move is aimed at facilitating greater collaboration between Indian and US industries in the nuclear sector.
Finance Minister Nirmala Sitharaman’s announcement in the Union Budget on 1 February regarding proposed amendments to India’s nuclear liability law and the Atomic Energy Act was acknowledged by both sides.
The amendments are expected to remove legal hurdles that have impeded progress on the nuclear agreement.
“The leaders announced their commitment to fully realise the US-India 123 Civil Nuclear Agreement by moving forward with plans to work together to build US-designed nuclear reactors in India through large-scale localisation and possible technology transfer,” the joint statement said.
India’s Civil Liability for Nuclear Damage Act (CLNDA), 2010, has long been regarded as a challenge in implementing the civil nuclear agreement, particularly due to stringent liability provisions that deterred foreign investment.
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In light of this, both nations agreed to establish bilateral mechanisms under the CLNDA framework to address liability concerns and facilitate commercial nuclear collaboration.
The Atomic Energy Act of 1962 currently bars private sector investment in nuclear power plants, but the proposed amendment is expected to remove this restriction, potentially opening avenues for greater industry participation.
In a significant move last month, the United States lifted restrictions on three key Indian nuclear research institutions—Bhabha Atomic Research Centre (BARC), Indira Gandhi Atomic Research Centre (IGCAR), and Indian Rare Earths (IRE).
This development was seen as a clear indication of Washington’s intent to deepen civil nuclear cooperation with India.
India and the United States had initially unveiled their ambitious plan for civil nuclear collaboration in July 2005, following a meeting between then Prime Minister Manmohan Singh and US President George W Bush.
The agreement, finalised three years later, was expected to pave the way for the US to share civilian nuclear technology with India. However, progress remained stymied due to liability concerns.
Leading US nuclear firms such as General Electric and Westinghouse have previously expressed interest in establishing nuclear reactors in India.
In recent years, India has also engaged in discussions with multiple countries, including the United States and France, regarding cooperation on small modular reactors (SMRs).
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