Relevance: GS II (International Relations) & GS III (Energy) | Source: Bilateral Summit Reports

1. What is the Big News?

In February 2026, India and Canada signed a massive nuclear energy deal in New Delhi.

• The Core Issue: India has a shortage of naturally occurring nuclear fuel.
• The Solution: Canada has agreed to supply us with the fuel and share advanced technology. This deal also helps repair the political friendship between the two countries after recent tensions.

2. What Did They Agree On? (The Key Points)

• Uranium Supply: Canada (the world’s second-largest producer) will give India 3,500 metric tonnes of uranium over the next five years.
• Mini Nuclear Plants: They will work together to build Small Modular Reactors. These are small, factory-built nuclear plants that are much safer and cheaper than giant traditional plants.
• Managing Waste: A new joint center will open in Mumbai to research how to safely dispose of nuclear waste.
• Upgrading Old Plants: Canadian engineers will help fix and upgrade India’s older power plants so they can safely run for another 20 to 30 years.

3. Why is this a Big Win for India?

• Continuous Power: A guaranteed supply of uranium ensures that our nuclear power plants will not have to shut down due to a lack of fuel.
• Clean Energy Goal: To stop pollution and reach our ‘Net Zero’ goal by 2070, India needs clean electricity. Solar and wind power stop when the sun sets or the wind dies. Nuclear power provides constant, 24/7 electricity without smoke.
• Saving Money: Reliable nuclear power means we do not have to buy expensive, polluting coal from other countries.

4. What are the Challenges?

• Strict Checking: Canada has very strict rules. They want to track every gram of the uranium to make sure it is only used for electricity, not for military weapons. This means extra paperwork and international checking for India.
• Accident Laws: India has a strict law called the Civil Liability for Nuclear Damage Act. It states that if an accident happens, the foreign supplier has to pay heavy fines. Because of this, many foreign companies are still scared to do business here.

UPSC Value Box

With reference to India’s civil nuclear program, consider the following statements:

1. Pressurized Heavy Water Reactors in India use enriched uranium as their primary fuel.
2. Small Modular Reactors are designed to be built in factories and transported to sites easily.
3. Canada is currently the world’s largest producer of natural uranium.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)