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V Refers to a bilateral accord on civil nuclear cooperation between the

United States of America and the Republic of India
V Framework: July 18, 2005 joint statement by Indian Prime Minister
Manmohan Singh and then U.S. President George W. Bush, under
which:
G India agreed to separate its civil and military nuclear facilities and,
G Place all its civil nuclear facilities under International Atomic Energy
Agency (IAEA) safeguards and,
G In exchange, the United States agreed to work toward full civil nuclear
cooperation with India
V whe agreement was signed by Indian External Affairs Minister
Pranab Mukherjee and his counterpart Secretary of State
Condoleezza Rice, on 10 October,2008.
V whe deal took more than 3 years to come to fruition,
as it had to go through several complex stages,
mainly being:
G Amendment of U.S. domestic law
G Civil-military nuclear Separation Plan in India
G India-IAEA safeguards (inspections) agreement
G Grant of an exemption for India by the Nuclear Suppliers Group(an
export-control cartel that had been formed mainly in response to India's
first nuclear test in 1974)
G Stiff Opposition in India
V India's long term plan is to expand and fuel its civilian nuclear
power generation capacity from its current output of about 4GWe
(GigaWatt electricity) to a power output of 20GWe by 2020.
V Estimated annual Uranium production ± 300 tonnes
V Estimated annual Uranium consumption ± 450 tonnes
V And, India's estimated reserve of uranium represents only 1% of the
world's known uranium reserves which affects Indian nuclear power
generation capacity
V On March 2¶2006, Prime Minister Singh and President Bush
announced that the preparation of a separation plan had been
successfully completed.
V ë
 India¶s 1974 peaceful nuclear explosion, which
demonstrated to most observers that nuclear technology originally
transferred for peaceful purposes could be misused. what test also
provided the impetus for creating the Nuclear Suppliers Group.
V Of the 15 operating power reactors:
G four are under safeguards ± two at warapur and two at Rajasthan
G wwo reactors under construction at Kudankulam will be under IAEA
safeguards
G 11 remaining reactors operating not under safeguards and five PHWRs
under construction
V whe separation plan appears to serve two purposes:
G Politically, it could help demonstrate India¶s commitment to
nonproliferation, and
G Legally, it must ensure U.S. compliance with Article I of the Nuclear
Nonproliferation wreaty (NPw) ² that U.S. cooperation does not in any
way assist a nuclear weapons program in a non-nuclear weapon state
V whe plan includes 14 reactors to be declared as civilian, or
approximately 65% of India¶s total operating energy capacity
V Nuclear Non-Proliferation wreaty (NPw or NNPw) is a treaty
to limit the spread of nuclear weapons, opened for signature
on July 1, 1968.
V Out of the 189 countries party to the treaty, five have nuclear
weapons: the United States, Russia, the United Kingdom,
China and France (also permanent members of the UN
Security Council).
V All signatories, including nuclear weapon states, are
committed to :
G the goal of total nuclear disarmament
G non proliferation, and
G right to peacefully use nuclear energy and an obligation to cooperate on
civilian nuclear technology
V IAEA or International Atomic
Energy Agency has been designed
to verify that nuclear energy is not
diverted from peaceful use to
weapons programs.
V whe agreement currently applies
|
 
  
safeguards to six Indian nuclear
   
 ||
reactors under safeguards 
 
agreements concluded between
1971 and 1994.
V It aims to bring a total of 14 Indian
reactors under safeguards by 2014.
V whe NSG ± Nuclear Suppliers Group was originally established "to ensure
that nuclear trade for peaceful purposes does not contribute to the
proliferation of nuclear weapons or other nuclear explosive devices."
V Under the waiver, India can proceed to import uranium fuel, nuclear
materials, equipment and technologies for its civilian nuclear programme.
But it can also divert domestic uranium exclusively for weapons purposes.
V In addition, India can produce more bomb fuel from its dedicated military
nuclear facilities and fast-breeder reactors, which it can maintain and
expand.
V History : On resistance from some countries, India was asked to accept
three conditions to resume nuclear trade - periodic review of compliance
with India's non-proliferation pledges, exclusion from trade of sensitive
technologies such as uranium enrichment and spent fuel reprocessing, and
cessation of nuclear commerce in case India tests. India only accepted the
first condition.
V whe opposition was due to inconsistency between the Prime
Minister Manmohan Singh's statement in Indian Parliament and
Bush Administration's communication to the House Foreign Affairs
Committee, which says that:
G whe 123 Agreement is not inconsistent with the Hyde Act's stipulation²the
little-known 'Barack Obama Amendment' -- that the supply of nuclear fuel
should be "commensurate with reasonable operating requirements". whis
implies a severe restriction to the 'strategic reserve' that is crucial to India's
nuclear program.
G Moreover, the agreement, as a result of its compliance with the Hyde Act,
contains a direct linkage between shutting down US nuclear trade with India
and any potential future Indian nuclear weapons test.
G whe NSG waiver¶s Section 3(e), in the event of ³an explosion of a nuclear
device´ refers to the paragraph, which allows a supplier to call for a special
NSG meeting, and seek termination of cooperation, in the event of a test or
any other ³violation of a supplier-recipient understanding´.
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V Nuclear non-proliferation - important in helping to advance the non-
proliferation framework : India has maintained a non-proliferation
record, though it hasn¶t signed the NPw
V Economic considerations - India's stated objective is to increase the
production of nuclear power generation from its present capacity of
4,000 MWe to 20,000 MWe in the next decade. Financially, the U.S.
expects the deal would bring in $150 billion in the next decade, of
which the U.S. wants a share
V Strategic
G Certain U.S. ambassadors (since the end of Cold War and Pentagon), have
requested increased strategic ties with India and a de- hyphenization of
Pakistan with India † separate policies toward India and Pakistan
G U.S. also sees India as a viable counter-weight to the growing influence of
China
V India¶s economical growth is 8-10 % a year and it won¶t be
able to keep up without clean nuclear energy.
V Nuclear energy is a must to become a developed nation.
V Reliable power resources bring more foreign investments to
India.
V whis will bring more and more job opportunities to India.
V Some of India's largest and most well-respected corporations
like Bharat Heavy Electricals Limited, National whermal
Power Corporation and Larsen & woubro eyeing a $100 billion
(U.S.) business in this sector over the same time period.
V According to Hindustan wimes, nuclear energy will produce
52,000 MW of electricity in India by 2020.