India - US nuclear agreement

· July 18 2005- US and India Decide to Sign a nuclear pact

Indian Prime Minister Dr Manmohan Singh’s Visit was very successful in terms of persuading the US for a nuclear pact specially keeping in mind, India’s exponentially increasing Energy needs. This is also a major step towards ameliorating indo-US relations. Also, if successful, it will help India to come out of Isolation in terms of nuclear technology. An isolation which was the consequence of 1974 Pokran test.
o US will help India in providing nuclear technology and fuel for Civilian use.
To reiterate America’s voice “US will work with friends and allies to adjust regime to enable full civil nuclear cooperation trade with India” On the basis of Indian commitment US would gain consensus with NSG the nuclear suppliers group and the NNPT group.
o These new civilian facilities will come under Scrutiny
Delegates from IAEA will patrol nuclear facilities which are facilitated by imported technology to ensure it is utilized for civilian purposes only.
o India has to identify and separate its Military and civilian nuclear facilities in different phases.
India has 15 reactors in operation 7 under construction which would be open for commercial purposes by 2008. Which of these will come under IAEA safeguards is a question, while ban on India’s Nuclear weapon testing will continue.
o Many other conditions were Tacit
Like India to vote against Iran’s recent nuclear program. Syrian Oil Exploration and Indo Iran oil pipeline project.
· A proposal for separation of military and civilian facilities was made by Mr. Saran last year but US delegates were not happy with it
· New proposal are being negotiated currently.
By the time President Bush visits India this March Much is expected to be completed
As Saran Indicates it might take longer to negotiate proceeding although he suggests that it has almost come to the end of reaching a pact.
Need For nuclear Power.
Indians are the 6th largest energy consumers in the world and accounts to about 3.4% of worlds total energy consumption. About 30% of India’s energy requirements are met by Petroleum products, and India has to Import 70% of this resource.
o To meet growing energy needs
India is a growing economy targeting 8%GDP. To sustain this growth proper Energy policy is quintessential. Demeaned for electricity in the country is growing at a rate of 8% and there is an average shortage of 10% and this shortage rises to 23% at peek hours.
o Towards achieving a Right balance between different energy resources.
§ Total Installed capacity 120Gwe
· Thermal - 90Gwe
· Hydro – 26Gwe
· Nuclear – 3Gwe
It was thought that 20% of India’s Energy requirements would be catered by Nuclear Energy by year 2000, but only about 4% of India’s energy requirements are met by Nuclear power.
o Nuclear Energy is clean.
Indian Coal has high sulpher and ash and creates environmental eco problems. Hydal power capacity is limited and depends on erratic monsoon.
o A step towards Self sufficiency
Nuclear energy will help India to be self sufficient of its energy requirements. India has 0.8% of worlds Uranium resources and has the largest Thorium resource (360000Ton) about 32% of world’s thorium resource. India has all sectors of nuclear fuel cycle in place Indian Nuclear self suffficency is complimented by Production of Zirconium and zirconium alloys for nuclear fuel cladding.
American technology support along with access to global nuclear resources will enable India to extend capacity at existing facilities and build new ones to meet its escalating energy requirements.
· Towards improving relations between The US an India
The US is the largest importer of Indian goods. Improved relations between the largest democracy and the oldest democracy will have paramount affect on global politics. Both countries will benefit from these relations. Americans will want more American companies to invest in India than in china.
· Maintain Political power balance in Asia
China and India are Two Asian Developing countries scaling up to new heights. China is certainly More self sufficient than India. China imports only about 30% of its energy resources. China will gain a serious edge over India if India is not able to fuel its growth with sufficient energy.
· US may try and influence Indian Foreign policy.
o Indo Iran Oil Pipe line project
o Siryan Oil exploration proect
o Indian stand on Iran’s nuclear policy.
o Weeken Indo Russian Nuclear Nexus.
United States of America will try to persuade India not have Iran-India Oil pipe line and also expressed its discomfort over Indian investment in Syrian oil explorations. But India, I believe, Must go ahead with these projects to achieve its desired energy security. It may not be wise to depend on one kind of resource.
· US may benefit from Indian Technology.
Apart from monitory gains, US may benifitfrom Indian technology. India has indigenously developed most of its later nuclear projects. Indian nuclear scientist should be applauded for this.
· Technology transfer must be done and should be modified to Indian needs US is a capitalist nation and therefore their facilities may be very costly. But the imported technology must be adapted to our needs and then implemented.
What lies in the path of the pact?
· India’s Denial to have Safeguards for its Fast breeder reactor program in R&D stage.
Indian Fast breeder program at Kalpakam is in nascent stage and therefore, India argues, it dose not require IAEA safeguards. Revelation of Indian R&D insights to a foreign party will be inordinate. More over Fast breeder reactor will use Plutonium and depleted Uranium (Plutonium is normally used in military purposes). By using Fissile material for Civilian use it actually serves Non proliferation objectives.
· 1974 and 1998 Pokran Tests.
On an earlier occasion US and Canada offered India nuclear support. in 1956 Canadian –Indian reactor was built In 1959 US trained Indian scientist in handling and reprocessing plutonium. India was offered a helping in hand in building breeder reactor by France in 1964. India tests its first nuclear weapon at Pokhran in 1974, calls it Peaceful nuclear explosion. 1998 India declares itself a nuclear state
· CIRUS to come under safeguards.
Canada India Boiling water Reactor for which Heavy water was supplied by US is allegedly being used by India to produce fissile material for its nuclear weapons.
· Indian Civilian and Military nuclear facilities are closely webbed.
India makes no separate distinction of its nuclear facilities for military and civilian purposes. Separating the two will have its own challenges.
· India is not a signatory of nuclear non proliferation treaty.
Because the NNPT gives a special status to 5 nations and allow them to have nuclear weapons where as others cannot have a nuclear weapon. Some believe since it is not a signatory of NNPT India may proliferate nuclear weapons. But despite of not being a non signatory India is more committed towards nuclear non proliferation than most other nations.
· It will require changing US laws.
It
· US will have to gain consensus of NSG’s
However for India to trade nuclear fuel with any country NSG consensus is necessary. Even if India complies with all US obligation it is not clear how US will gain the consensus of NSG. US should also bring forward a proposal to do it.
Pct’s influence on nuclear non proliferation treaty
· India can Accumulate fissile material after it allowed to trade with NSG’s

It may not be feasible to make country specific laws.
International community fears that changes made may help other countries gain nuclear weapons.
· India’s Commitment and history of nuclear non proliferation is very good
India has a better non proliferation record than many other countries. Like that of China which enjoys “Nuclear power” status

Civilian Nuclear cooperation from US will help India in many ways. India has shown indigenous nuclear capability and time is the only constraint to develop civilian nuclear facilities needed for powering India in to the future. Since we have run out of time US help may be very Handy. But India need not be a martinet for the US. Other countries like Russia and France might step forward to lend a helping hand to India.