23.11.09

N deal update

More than a year after the US-India strategic nuclear energy initiative was deemed signed, sealed, and delivered, allowing India to conduct international nuclear commerce, Washington and New Delhi are still tying up loose ends that can allow bilateral trade between the two countries. Put it this way: the US-India agreement (and its approval by the international community) allowed New Delhi to begin limited trading with countries such as Russia and France. But the US Congress and its non-proliferation hardliners, in their wisdom, decreed conditions that have tied the hands and feet of American companies and not allowed them a piece of the action. So US and Indian officials have been bashing heads through the weekend to overcome the residual and regulatory roadblocks before PM Manmohan Singh meets President Barack Obama on Tuesday so they can put their signature on more documents so that the two sides can announce – yet again – that it is a done deal. Among the residual issues a reprocessing agreement for spent fuel meant to ensure that US supplied material is not diverted to the Indian weapons programme, a guarantee that involves an Indian commitment to set up a dedicated reprocessing facility which will function under international safeguards. India is also required to establish by way of legislation a Civil Nuclear Liability Regime to limit compensation by American nuclear companies operating in India in case of nuclear accidents. The cabinet cleared the proposal last week and Washington will be informed that it will be passed in the winter session of Parliament. A final requirement is for a written Indian “assurance” on non-proliferation under an obscure US energy department rule — a late crinkle that caused some furrowed foreheads in India, but which is not expected to hold things up. India’s principal nuclear interlocutors, including Anil Kakodkar and R B Grover have been rushing in and out of Washington DC to tie-up the loose ends in time for the Singh-Obama engagement. Incidentally, Kakodkar will retire as chairman of the Atomic Energy Commission and secretary, Department of Atomic Energy, on November 30. Strictly speaking, none of the wrinkles were unexpected or beyond the bounds of the nuclear pact. The so-called 123 Agreement did provide a full year’s window for talks, which began in August this year and has already seen three rounds, to tie up the loose ends. “We hope to complete the negotiations earlier than that. The government has already announced twosites(one in AP and one in Gujarat) that would be offered to US companies for nuclear power plants,” a senior Indian diplomat said, maintaining that things were proceeding apace and talk of the nuclear deal going off the rails was misplaced.So yes, there will be a little something on the nuclear front to write home about this coming week, although don’t expect to see the headline “Nuke deal nearing finish line” go away any time soon.

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