THE US-INDIA THE US-INDIA NUCLEAR DEALNUCLEAR DEAL

INTRODUCTION-INTRODUCTION-

The United States-India Peaceful Atomic Energy Cooperation The United States-India Peaceful Atomic Energy Cooperation Act of Act of 20062006 is the legal framework for a bilateral pact between is the legal framework for a bilateral pact between the the United StatesUnited States and and IndiaIndia under which the U.S. will provide under which the U.S. will provide access to civilian access to civilian nuclear technologynuclear technology and access to and access to nuclear fuelnuclear fuel

in exchange for in exchange for IAEAIAEA-safeguards on civilian Indian reactors.-safeguards on civilian Indian reactors.

On On March 2March 2, , 20062006 in New Delhi, in New Delhi, George W. BushGeorge W. Bush and and Manmohan SinghManmohan Singh signed a Civil Nuclear Cooperation signed a Civil Nuclear Cooperation Agreement, following an initiation during the July 2005 summit Agreement, following an initiation during the July 2005 summit in in WashingtonWashington between the two leaders over civilian nuclear between the two leaders over civilian nuclear cooperation.cooperation.

BackgroundBackground

Signatories to the Signatories to the Nuclear Non-Proliferation TreatyNuclear Non-Proliferation Treaty

((NPTNPT) are granted access to civilian nuclear technology ) are granted access to civilian nuclear technology from each other as well as nuclear fuel via the Nuclear from each other as well as nuclear fuel via the Nuclear Suppliers Group in exchange for IAEA-verified compliance of Suppliers Group in exchange for IAEA-verified compliance of the NPT tenets,the NPT tenets,however India was not sign this treaty however India was not sign this treaty as a as a result, India has not been granted access to civilian nuclear result, India has not been granted access to civilian nuclear technology from any other country.technology from any other country.

Terms of the dealTerms of the deal

1 1 India agrees to allow inspectors from the India agrees to allow inspectors from the International Atomic Energy Association (IAEA)International Atomic Energy Association (IAEA), the United , the United Nations' nuclear watchdog group, access to its civilian nuclear Nations' nuclear watchdog group, access to its civilian nuclear programprogram

2 India commits to signing an 2 India commits to signing an Additional Protocol (PDF)Additional Protocol (PDF)—which —which allows more intrusive IAEA inspections—or its civilian facilities.allows more intrusive IAEA inspections—or its civilian facilities.

3 India agrees to continue its moratorium on nuclear weapons 3 India agrees to continue its moratorium on nuclear weapons

testing.testing. 4 India commits to strengthening the security of its nuclear 4 India commits to strengthening the security of its nuclear

arsenals.arsenals. 5 U.S. companies will be allowed to build nuclear reactors in India 5 U.S. companies will be allowed to build nuclear reactors in India

and provide nuclear fuel for its civilian energy and provide nuclear fuel for its civilian energy programprogram

6 India6 India works toward negotiating a Fissile Material Cutoff Treaty works toward negotiating a Fissile Material Cutoff Treaty (FMCT) with the United States banning the production of fissile (FMCT) with the United States banning the production of fissile material for weapons purposesmaterial for weapons purposes

INDIA – US NUCLEAR DEAL – INDIA – US NUCLEAR DEAL – The The

BenefitsBenefits How does US benefit with this Deal?How does US benefit with this Deal?

1 If India sets up 10 large size nuclear power plants, in next 1 If India sets up 10 large size nuclear power plants, in next 15 years, India will import technology and hardware from 15 years, India will import technology and hardware from US for at least half of these projects,each of these plants at US for at least half of these projects,each of these plants at a green field site will cost about $4 billion. In short, orders a green field site will cost about $4 billion. In short, orders worth $15-20 billion could be placed with the US companies worth $15-20 billion could be placed with the US companies in next 6 to 8 years. in next 6 to 8 years.

2 Fund for these installations will come to India either in form 2 Fund for these installations will come to India either in form of FDI or soft & commercial loans. Banks and equipment of FDI or soft & commercial loans. Banks and equipment manufacturers abroad will be delighted to make this manufacturers abroad will be delighted to make this amount available to India. In return India will pay it back amount available to India. In return India will pay it back

with goods and services export.with goods and services export.

3. Another unstated benefit for US appears to be their 3. Another unstated benefit for US appears to be their assessment that India could be a counter weight to a “rising assessment that India could be a counter weight to a “rising China” in the region. China” in the region.

4 4 The growing energy demands of the Indian and Chinese The growing energy demands of the Indian and Chinese economies have raised questions on the impact of global economies have raised questions on the impact of global energy availability. The Bush Administration has concluded energy availability. The Bush Administration has concluded that an Indian shift toward nuclear energy is in the best that an Indian shift toward nuclear energy is in the best interest for America to secure its energy needs of coal, interest for America to secure its energy needs of coal, crude oil, and natural gas.crude oil, and natural gas.

What does India get out of the Deal?What does India get out of the Deal?

1 India would be eligible to buy U.S. dual-use nuclear 1 India would be eligible to buy U.S. dual-use nuclear technology, including materials and equipment that could technology, including materials and equipment that could be used to enrich uranium or reprocess plutonium, be used to enrich uranium or reprocess plutonium, potentially creating the material for nuclear bombs. It would potentially creating the material for nuclear bombs. It would also receive imported fuel for its nuclear reactors.also receive imported fuel for its nuclear reactors.

2 U.S. investment that could spur India's economic growth 2 U.S. investment that could spur India's economic growth

and bring in $150 billion in the next decade for nuclear and bring in $150 billion in the next decade for nuclear power plants and to modernize the country's transportation power plants and to modernize the country's transportation system system

3 After 50 years of isolation, India will have the opportunity to 3 After 50 years of isolation, India will have the opportunity to say something, in world forums like UN, WTO and World say something, in world forums like UN, WTO and World monetary lending institutions, and be heard. This was not monetary lending institutions, and be heard. This was not

the case previouslythe case previously. .

44 It is India's stated objective to increase the production of It is India's stated objective to increase the production of nuclear power generation from its present capacity of nuclear power generation from its present capacity of 4,000 MWe to 20,000 MWe in the next decade which can 4,000 MWe to 20,000 MWe in the next decade which can not be acquired without signing this deal.not be acquired without signing this deal.

5 India could become a full member of the select group of 5 India could become a full member of the select group of G-8 members. G-8 members.

6 Nuclear energy would save 145 million tonnes of CO2 per 6 Nuclear energy would save 145 million tonnes of CO2 per yearyear

What do proponents say about the deal?What do proponents say about the deal?

1 It would encourage India to accept international 1 It would encourage India to accept international safeguards on facilities it has not allowed to be inspected safeguards on facilities it has not allowed to be inspected beforebefore..

2 2 Recognizes that India has a good record on proliferationRecognizes that India has a good record on proliferation

3 Rewards India's decision to adopt similar nuclear export 3 Rewards India's decision to adopt similar nuclear export standards as those imposed by the Nuclear Suppliers standards as those imposed by the Nuclear Suppliers

Group (NSG).Group (NSG).

What are the objections to the agreement?What are the objections to the agreement?

1 The safeguards apply only to facilities and material 1 The safeguards apply only to facilities and material manufactured by India beginning when the agreement manufactured by India beginning when the agreement was reached.was reached.

2 The deal does not require India to cap or limit its fissile 2 The deal does not require India to cap or limit its fissile material productionmaterial production

3 It does not require India to restrict the number of nuclear 3 It does not require India to restrict the number of nuclear weapons it plans to produce.weapons it plans to produce.

4 There are far more cost-efficient ways to improve India's 4 There are far more cost-efficient ways to improve India's energy and technology sectors. energy and technology sectors.

VIEW OF LEFT FRONT ON N-DEALVIEW OF LEFT FRONT ON N-DEAL

Acc to the Communist Party of India (Marxist) Polit Bureau Acc to the Communist Party of India (Marxist) Polit Bureau member B.V. Raghavulu signing the nuclear deal with the member B.V. Raghavulu signing the nuclear deal with the United States would make India a puppet in the hands of United States would make India a puppet in the hands of that country.that country.

Mr. Raghavulu drove home the point that importing Mr. Raghavulu drove home the point that importing uranium from the US would compound the problems of the uranium from the US would compound the problems of the common man because on importing the uranium from US, common man because on importing the uranium from US, present cost of a unit of power which is Rs.2.50,could go up present cost of a unit of power which is Rs.2.50,could go up to Rs.9 a unit when uranium is used.to Rs.9 a unit when uranium is used.

He said that import of gas and oil from Iran and Iraq was a He said that import of gas and oil from Iran and Iraq was a better alternative as it could lower unit prices considerably better alternative as it could lower unit prices considerably in India in India

It is also said by left parties that signing this agreement It is also said by left parties that signing this agreement would be a threat to national security because it prohibits would be a threat to national security because it prohibits India to do nuclear tests.India to do nuclear tests.

RECENT HAPPENINGS ON N-DEAL ISSUERECENT HAPPENINGS ON N-DEAL ISSUE

Aug-18-07 – Aug-18-07 – CPM wants brakes on N-deal with US. CPM wants brakes on N-deal with US.

Aug-23-07Aug-23-07 –Unrelenting on its opposition to the Indo-Us N- –Unrelenting on its opposition to the Indo-Us N-deal CPM on 23 made it clear that the future of the UPA deal CPM on 23 made it clear that the future of the UPA coalition lies with the government not operationalise the coalition lies with the government not operationalise the agreement.agreement.

Oct-18-07Oct-18-07 – PM on a backfoot by saying , N-deal will – PM on a backfoot by saying , N-deal will happen but no time line.happen but no time line.

Oct-13-07 Oct-13-07 – N-deal will go, but govt. wont .It is not end of – N-deal will go, but govt. wont .It is not end of life, says PM.life, says PM.

Oct-25-07Oct-25-07 – US sets year–end deadline for nuke deal – US sets year–end deadline for nuke deal otherwise India have to pay consequences.otherwise India have to pay consequences.

Oct-26-07 Oct-26-07 – CPM: US dead line an insult to India. – CPM: US dead line an insult to India.

CONCLUSIONCONCLUSION

As said, When we want something we have to loose some. As said, When we want something we have to loose some. This is the case with N-deal , if we want economic This is the case with N-deal , if we want economic

progress of our country, we need energy source and progress of our country, we need energy source and investment thus we have to sign the deal inspite of some investment thus we have to sign the deal inspite of some tough regulations on us , because there is no other quick tough regulations on us , because there is no other quick source of getting energy source and investment for our source of getting energy source and investment for our country. country.

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