India aglow as nuclear pact approved
By Siddharth Srivastava
NEW DELHI - After years of delays and debate in New Delhi and Washington, the
final legislative hurdle for the civilian nuclear trade deal between India and
the Untied States has been removed.
On Wednesday, US senators voted 86-13 to approve the India-US nuclear pact,
agreed in principle in July 2005. The vote not only clears the way for the
groundbreaking deal but also does away with sanctions imposed on India
following its Pokhran nuclear explosion in 1974 and another atomic test in
1998.
There were some voices of dissension in the Senate, specifically concerning
India's potential role in passing military nuclear technology to Iran. Overall,
however, the deal received overwhelming backing and presidential candidates
Senator
Barack Obama and Senator John McCain reportedly voted for the bill.
The nuclear deal was approved by the US House of Representatives by a 298-117
vote last week.
In a statement following the Senate's approval, US President George W Bush, who
was instrumental in pushing the deal through, said, "This legislation will
strengthen our global nuclear non-proliferation efforts. I look forward to
signing this bill into law and continuing to strengthen the US-India strategic
partnership."
Still, America has made it clear that any future nuclear weapons testing by
India would result in the "most serious consequences".
According to reports, Secretary of State Condoleezza Rice, slated to be in
India this weekend to ink the pact, has assured Washington that any future
testing by India would entail an automatic end to the pact as well as the
imposition of international sanctions.
Prime Minister Manmohan Singh, however, has been steadfast that the new access
to international supplies of nuclear fuel and technology does not affect
India's freedom to test weapons, should the country wish to.
However, India, which has already built credible nuclear deterrents, is not
expected to soon test another atomic bomb and will instead focus on building
the infrastructure for nuclear energy.
In this context, many observers see India's admission to the Nuclear Suppliers'
Group (NSG) as the global "nuclear exception" and a reward for a nation that
has been rooted to democratic values and responsible international behavior.
This is unlike countries such as Pakistan, North Korea, Iran and Iraq, which
are not perceived well by the West due to their dubious proliferation records,
alleged promotion of terrorism and extremist elements.
India's eligibility to access nuclear power technology and fuel from the
international market while maintaining an independent nuclear weapons program
has come about despite New Delhi's refusal to sign the nuclear
Non-Proliferation Treaty.
It has been a tortuous path to the impending culmination of the India-US
nuclear deal. There have been periods when the deal was thought dead, and
India's Manmohan government was almost voted out of power over its aggressive
backing of the pact.
New Delhi faced a no-confidence motion in July after the anti-American left
coalition withdrew its support, claiming the pact impinged on India's
sovereignty and right to an independent weapons program
Only last-minute political deals cut by Congress party president Sonia Gandhi
with regional parties saved the Manmohan government from collapsing.
Defying domestic political opposition and a reported attempt by China to derail
the waiver at the NSG, India's nuclear exemption is a victory for New Delhi's
diplomatic and strategic initiatives. It was helped along by a Washington
government eager to check China's influence in the region.
Following months of negotiations, India and the US unveiled a bilateral pact -
the 123 Agreement - in August last year. The agreement forms the basis of
nuclear trade between the two countries.
Two months ago, the governors of the International Atomic Energy Agency
approved India's inspection plan for its civilian reactors. Last month,
following intense lobbying by India, the 45-nation NSG lifted the ban on
nuclear trade on India, opening big business opportunities for companies in
India and abroad.
The nuclear pact will be considered the one standout achievement of Manmohan's
tenure. It remains to be seen, however, whether the deal will yield political
dividends in the general elections scheduled next year in India. One segment of
opinion feels that India's sizeable Muslim voters may be put off by New Delhi's
increased proximity with the US.
There is also a school of thought that believes Manmohan should have shown
equal resolve in trying to check inflation, revamp the health and education
sectors and improve neglected infrastructure.
While nuclear power may provide dividends in time, other problems need to be
sorted out with similar zeal, goes one often-heard refrain.
For the West, there is now the big incentive of massive business opportunities
courtesy of an emerging and fast-growing Indian economy. There is also impetus
from India's space, software and health programs which have been previously
hampered by a ban on access to "dual use" technologies.
The path is now paved for French, Russian, Japanese and US companies to
aggressively bid for the expected US$100 billion in nuclear business. Companies
such as France's Areva SA, Electricite de France, Japan's Hitachi, Russia's
Rosatom and American General Electric (GE) and Westinghouse Electric Co (WEC)
are expected to bid for contracts.
American delegations to India in the recent past have included the Nuclear
Energy Institute, the policy arm of the US nuclear-energy industry, GE, Thorium
Power, WM Mining Co and WEC - which supplies technology to almost half of the
world's operational nuclear power plants.
France has been resolute in backing India's civilian nuclear efforts. A nuclear
trade deal was struck this week when President Nicolas Sarkozy met with
Manmohan.
Long-time ally Russia is already helping India build two 1,000 megawatt light
water reactors at Kundakulum in Tamil Nadu.
The two countries have also negotiated a bilateral agreement to pave the way
for focused nuclear cooperation. Reports suggest that New Delhi and Moscow have
"informally" agreed to build five or six nuclear reactors.
Power shortages are pinching India's growth, and nuclear power is seen as an
important component of an energy mix comprising thermal, gas and alternative
energy sources.
The Confederation of Indian Industry has said that 18 to 20 new nuclear power
plants were likely to be set up in India over the next 15 years. India has set
the big target of an additional 60 gigawatts of nuclear power to add to the
current capacity of three gigawatts.
New Delhi is also working on amending the Atomic Energy Act to facilitate
private-sector participation in nuclear-power production. Previously, this has
been the sole fiefdom of government agencies.
Domestic engineering players in India, such as Reliance, JSW, Bharat Heavy
Electricals Limited and Larsen & Toubro, are expected to pour in over 1
trillion rupees (about US$15 billion) into the nuclear sector.
Siddharth Srivastava is a New Delhi-based journalist.
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