30.3.10

US, India reach reprocessing pact to advance N-deal


India and the United States have concluded a nuclear fuel reprocessing agreement to advance their bilateral civilian nuclear deal, the Obama administration announced on Monday. The agreement, a key step in the full realization of the Indo-US nuclear deal reached some 18 months ago, will enable Indian reprocessing of US-supplied nuclear material under safeguards of the International Atomic Energy Agency (IAEA). Nuclear reprocessing typically involves separating and managing components of spent nuclear fuel, potentially including weapons-grade fuel for nuclear bombs; Washington’s insistence on an internationally overseen reprocessing arrangement arose from the condition in the nuclear deal that India not divert US-supplied nuclear fuel to its military programme. The US fuel-supply guarantee involved an Indian commitment to separate and firewall its civil and military reactors and set up of a dedicated reprocessing facility, which would function under international (IAEA’s) safeguards. The just-concluded arrangement details the nuts and bolts of the inspection regime. Reactors designated as military facilities and nuclear fuel that India has produced up to now will be exempt from inspections or safeguards in this unique and exceptional arrangement. Disclosing that the two sides have ‘‘taken an important step towards implementing civil nuclear cooperation by completing negotiations on ‘arrangements and procedures’ for reprocessing US-origin spent nuclear fuel’’, the state department in a statement on Monday said that ‘‘completion of these arrangements will facilitate participation by US firms in India’s rapidly expanding civil nuclear energy sector’’. The reprocessing arrangement was one of three residual issues the two sides were grappling with since the conclusion of the nuclear deal in October 2008. India is also required to establish by way of legislation a civil liability for nuclear damages regime to limit compensation by American nuclear companies operating in India in case of nuclear accidents. Washington, and US nuclear companies, are waiting for New Delhi to pass such a bill, which the government is expected to navigate through Parliament. A final requirement is for a written Indian ‘‘assurance’’ on non-proliferation under an obscure US energy department rule, which is considered more of a bureaucratic fine print issue. Resolution of these residual issues and fully operationalizing the deal will lift a three-decade US moratorium on nuclear trade with India.

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