India, France team up to develop small modular N-reactors
14 Feb 2025
India and France will jointly design and develop small modular nuclear reactors as part of bilateral cooperation in the renewable energy sector.
The two countries also signed a letter of intent to work together for developing such reactors that are easy to fabricate and assemble, according to a foreign ministry statement.
The decision was taken after Prime Minister Narendra Modi and French President Emmanuel Macron held a one-to-one meeting on the sidelines of the AI policy summit.
The two leaders emphasised the significance of nuclear energy for "strengthening energy security" as economies transition towards a "low-carbon economy".
Meanwhile, New Delhi has relaxed its stance on the liability clause attached to foreign investment in nuclear energy projects. India’s strict nuclear liability law has been blamed for holding back investment in the sector as operators were accountable for accidents or incidents under the law.
Modi, who will be flying to Washington on Thursday after his engagements in Paris, is expected to discuss the issue of foreign investments in India’s nuclear energy sector with US investors.
The foreign ministry said the plan is to develop small modular reactors and advanced modular reactors for civil use. These can be built over a smaller area and do not require large infrastructure, compared to traditional nuclear reactors.
These are to be fabricated in factories and transported to locations for assembling and installation.
Foreign secretary Vikram Misri said the modular reactor technology was "still in its initial stages, which necessitated "cooperation" in its development.
He said a collaborative effort in designing, developing and manufacturing these reactors will help in tackling complications faced in the designing and development process while also better assessing potential risks.
India’s move to engage foreign partners in the design and development of new nuclear reactors also signal a shift in the government’s regulatory stand that developers should own responsibility for any risks arising from the nuclear reactor.
This policy also deterred private sector, including foreign, participation in India’s nuclear power sector.
Interestingly, Union Budget 2025-26 has allocated over Rs17,000 crore for setting up indigenous nuclear reactors by 2033 and achieving the ambitious goal of generating 100GW of nuclear energy by 2047.
Modi is also reported to have discussed the issue with US vice president JD Vance on the sidelines of the AI Summit in Paris on Tuesday. They are reported to have discussed ways in which the US could help India diversify its energy sources, including through investing in American nuclear technology.
