In a significant move for India's nuclear energy sector, Flowserve Corporation of the United States and CORE Energy Systems Ltd. of India have signed a groundbreaking agreement to transfer primary coolant pump technology to India. This deal marks a pivotal moment in Indo-US cooperation in the civil nuclear domain.

Key Highlights of the Agreement

• The agreement was formalized in Washington DC, with approvals from both the US Department of Energy and India's Department of Atomic Energy.
• This represents the first technology transfer under Indo-US cooperation requiring CFR 810 approval, culminating after a five-year process.
• The deal aligns with India's ambitious target of achieving 100GW nuclear capacity by 2047, a substantial increase from the current 8.2 gigawatts.

Strategic Importance

Nagesh Basarkar, Chairman of CORE Energy Systems, emphasized the strategic importance of this agreement, stating, "This marks the first technology transfer under Indo-US cooperation, requiring CFR 810 approval after a five-year process." He further highlighted the current supply chain constraints in India, noting that there is presently only one primary coolant pump vendor in the country.

Diplomatic Context

The agreement follows commitments made during Prime Minister Narendra Modi's visit to the United States in February, aimed at implementing the US-India 123 Civil Nuclear Agreement. This deal represents a concrete step towards fulfilling those commitments and strengthening bilateral cooperation in the nuclear energy sector.

Approval Process and Future Implications

• The Department of Atomic Energy (DAE) approved CORE Energy as Flowserve's partner in November 2024.
• Both parties have provided assurances that the transferred technology will be used exclusively for peaceful civil nuclear purposes.

India's Nuclear Energy Ambitions

This technology transfer agreement is crucial for India's plans to significantly expand its nuclear energy capacity. The country's target of 100GW by 2047 represents a more than tenfold increase from its current capacity, underscoring the importance of such international collaborations and technology transfers.

The deal between Flowserve and CORE Energy Systems not only addresses immediate supply chain constraints but also sets a precedent for future technology transfers in the nuclear energy sector. As India continues to pursue its clean energy goals, such partnerships are likely to play a vital role in achieving its ambitious targets.

Mumbai-based engineering firm CORE Energy Systems Ltd has successfully raised ₹200 crore in a significant funding round, aimed at bolstering its operations in the nuclear energy sector. This capital injection marks a pivotal moment for the company as it seeks to scale up its presence in the clean energy landscape.

Key Highlights of the Funding Round

Strategic Expansion Plans

The newly acquired funds will be strategically deployed to enhance CORE Energy Systems' capabilities in several key areas:

1. Infrastructure Expansion: The company plans to significantly upgrade its existing infrastructure to meet the growing demands of the nuclear energy sector.

2. Manufacturing Capabilities: A portion of the funds will be allocated to bolster the firm's manufacturing prowess, particularly for critical components and equipment essential to nuclear energy projects.

3. Defense Technology Solutions: In alignment with the government's self-reliance initiatives, CORE aims to ramp up its production of defense technology solutions.

Ongoing Projects and Future Focus

CORE Energy Systems is currently engaged in two notable projects that underscore its commitment to advancing India's nuclear energy capabilities:

1. Tarapur Nuclear Facility Refurbishment: The company is actively involved in the refurbishment of the Tarapur nuclear facility, demonstrating its expertise in maintaining and upgrading critical nuclear infrastructure.

2. Indigenization Efforts: CORE is working on indigenizing critical machinery that is currently imported, a move that aligns with the national goal of reducing dependence on foreign technologies in strategic sectors.

Industry Implications

This substantial funding round for CORE Energy Systems reflects the growing investor confidence in India's nuclear energy sector. As the country continues to diversify its energy mix and reduce carbon emissions, companies like CORE are poised to play a crucial role in developing and maintaining the necessary infrastructure for clean energy production.

The exit of IDBI Capital Markets & Securities from the firm, coupled with the entry of new investors, suggests a shift in the company's ownership structure that could bring fresh perspectives and strategies to its operations.

As CORE Energy Systems embarks on this new phase of growth, its efforts in expanding nuclear energy capabilities and indigenizing critical technologies are likely to contribute significantly to India's energy security and technological self-reliance in the coming years.