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India's Nuclear Agreement

By Krittivas Mukherjee
Fri Sep 19, 2008

NEW DELHI (Reuters) - Armed with a permit for global nuclear trade, India's prime minister leaves next week for the United States and France hoping to seal atomic energy deals and discuss cooperation in defense and counter-terrorism.

Manmohan Singh will fly out on Monday for what will be India's first top-level diplomatic engagement since a global nuclear cartel allowed it access to nuclear fuel and technology, overturning a 34-year-long ban for testing nuclear devices.

Singh is also expected to use the visit to review with President George Bush the progress of an India-U.S. nuclear deal awaiting approval by the U.S. Congress, where it faces significant opposition from the non-proliferation lobby.

There has been talk the deal could be ratified by Congress and ready for signing before Singh ends his U.S. visit, but Indian officials and analysts remain cautious in their optimism.

"No one knows for sure when it will be ready," Naresh Chandra, former Indian ambassador to Washington, said of the deal, seen as a cornerstone of India's growing ties with the West.

"It is now a creature of circumstances and subject to the ebb and flow of Congressional opinion."

At present, just three percent of India's total power requirement in generated by nuclear plants, a proportion New Delhi aims to increase to around 25 percent by 2050, taking billions of dollars in investment.

Relations between India and the United States have come a long way from the days of the Cold War when the two countries were typically on opposite sides.

India's economic reform program, its huge market, a booming information technology industry, its growing military reach and its potential as a counterweight to China have combined to bring New Delhi closer to Washington.

NUCLEAR DOLLARS

Today, the two capitals are talking about India buying U.S. F-16 fighter jets and nuclear reactors, a far cry from the days when Washington imposed sanctions on New Delhi after it conducted nuclear tests in 1998.

Besides the nuclear deal, Singh, an eminent economist, will hold talks on issues ranging from defense to terrorism and the global financial crisis.

He will also address the U.N. General Assembly and could hold bilateral meetings with other heads of state, including a likely meeting with Pakistan President Asif Ali Zardari.

In France, Singh will meet French President Nicholas Sarkozy and is expected to sign a nuclear pact under which India could obtain, subject to fulfilling international safeguards, nuclear fuel from France for reactors purchased from it.

"The PM's France visit will be about posturing as well, telling the Americans ... look, we have other options if you don't clear the deal," columnist Kuldip Nayar told Reuters.

"Geo-political compulsions mean India needs to be seen equally friendly with independent European countries such as France."

Prospects for nuclear trade with India -- expected at about $27 billion in investment in 18-20 new nuclear power plants over the next 15 years -- have boosted the stock market value of nuclear equipment makers.

Local media says India's monopoly Nuclear Power Corp has tentatively picked four suppliers, including U.S.-based Westinghouse Electric and France's Areva, for planned new projects.

India also is negotiating with General Electric, Hitachi and Russia's atomic energy agency Rosatom.

India has forged strong defense ties with France in recent years, with deals for Mirage jets and Scorpene submarines to modernize its military, the world's fourth-largest.

France's Dassault Rafale is competing to provide India with combat aircraft in the world's biggest fighter jet contract in years, expected to top $10.2 billion for 126 planes. U.S. firm Lockheed Martin Corp is also interested in the deal.

Analysts say Singh will want to move from talk to action when it comes to nuclear energy, and will try to put bilateral mechanisms in place with the United States and France to ensure proposals move forward quickly once agreed upon.
 
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WASHINGTON: Congressman Edward J Markey, a member of the House Energy and Commerce Committee and founder of the House Bipartisan Task Force on Non-proliferation, has slammed the US State Department for its misleading Senate testimony on the US-India nuclear deal.

Markey said in a statement that President Bush’s State Department continued its three-year campaign to undermine the Nuclear Non-Proliferation Treaty by ignoring glaring non-proliferation problems with the US-India nuclear deal.

The State Department has claimed that if India tests a nuclear weapon, the deal would be terminated, but just last week the US ambassador to India said that India “will always have the sovereign right to conduct a test”. The State Department also said that the deal maintains America’s right to “seek the return of transferred (nuclear) materials and technology”, but unlike other nuclear co-operation agreements, this agreement does not explicitly states a US right of return should India test again.

This double-speak is dangerous and misleading, and must end. Markey said it is clear that the Bush administration has not seriously followed the requirements of the US law in negotiating this deal. Now, the president’s attempt to force an immediate approval vote is compromising the ability of the Congress to scrutinise this agreement and fix its many problems.

President Bush is desperate to boost his legacy, but if the Congress fails to carefully conduct the necessary oversight, the legacy left by this agreement will be one of blatant disregard for global security, he warned.
 
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Fri Sep 19, 2008

The US Congress today begins discussions on a landmark civilian nuclear agreement with India, with a call from the Senate Foreign Relations Committee to fast track endorsement this month. Reports from Washington say Congress aims to vote on the deal before it adjourns in a week's time, ahead of the November presidential elections. The civil nuclear agreement between the US and India, if approved, is seen as a milestone in bilateral relations, and will give India access to western technology and cheap atomic energy.

Presenter: Sen Lam
Speaker: Brad Glosserman, executive director of the Pacific Forum at CSIS in Hawaii

GLOSSERMAN: Well my sense is that Congress is somewhat divided, pretty divided actually and I'm not so sure that they are actually going to get the vote on it this week as they had anticipated. There's a lot of distractions and again a lot of indecision about whether it is exactly the way to proceed, especially with the lame duck administration.

LAM: So just recap for us - what exactly does this deal involve?

GLOSSERMAN: Well, it is essentially what is called a civilian nuclear agreement and what will permit is the United States and India to resume trade in nuclear materials and technologies and essentially, overcome the biggest obstacle to their bilateral relation which began when India stepped on the path of developing its own nuclear weapons programme, and particularly into 1998 when it exploded nuclear devices.

LAM: And Brad, the nuclear suppliers group of course earlier this month gave it the nod. But has India cleared all the hurdles to qualify for such a deal with America?

GLOSSERMAN: Well, if Congress passes it, the answer is yes. What happens is that the United States and India have decided they want to build this better relationship and so they've smooth out this particular wrinkle. They then had to get IAEA approval which followed, the International Atomic Energy Agency, the nuclear watchdog, and then they had to go to the nuclear suppliers group, which operates by consensus and is the 45 leading countries that supply nuclear materials and technology.

Now the United States pushed very, very hard to get the group to approve the deal and really strong-armed a lot of folks. They ultimately got the resolution after what was a very drawn out process, and now what you have is again it pushes back up to the Congress, which now can approve the deal and it can move forward.

LAM: So obviously it feels then, that on Capital Hill, at least, that it's greatly in American interests to have this civilian nuclear agreement with India?

GLOSSERMAN; Well, it depends on how you frame it. I mean again the first objective here is not only to create, to push this nuclear deal, but to create a new relationship, the two largest democracies in the world, the United States and India, have been at loggerheads, particularly over the nuclear issue and this is a chance to get past that. You build a new strategic relationship. In addition, what you end up with is the opportunity to put another country on the path towards more nuclear energy, and that kind of lessens demand for oil globally and takes some pressure off that market. In addition, nuclear energy has less greenhouse gas emissions, that's more efficient.

Ultimately, the case is made that in fact what you are doing is strengthening the Nuclear Non-Proliferation regime worldwide. You're taking a country that has been outside of the regime and putting 14 of its 22 nuclear reactors facilities under safeguards and that's good.

The counter argument of course is that there are still eight reactors in facilities that remain outside of international inspection and therefore, by providing India with the materials and technology for the 14 that are under safeguards, that you essentially free up other nuclear materials to be used for nuclear weapons programme and you don't have the obligation that a part of the Nuclear Non-Proliferation Treaty for a nuclear power to disarm. So in other words, India says we're committed to disarmament, but legally it's not bound to, unlike France, the UK, Russia, the United States and China which are signatories to the Nuclear Non-Proliferation Treaty.

LAM: And Brad, if as you say, Congress is slow in ratifying it and doesn't get the treaty sewn up by the end of the year, do you think there's a danger that India might turn to other countries?

GLOSSERMAN: Well certainly, the Indians are very eager to start exploiting and using their leverage now with other countries, and I think the French and the Russians are very eager to sell nuclear reactors. And there's a good question here as to how much of the nuclear business that the United States is going to get. But the bigger issue again is the notion of eliminating a large obstacle to the US-India relationship. And even if the nuclear business doesn't move forward, I think you are going to see an explosion in trade and relations between the United States and India on a variety of fronts. So what you are going to have here is a new way of looking at a bilateral relationship.

LAM: And just briefly Brad, do you think China will be watching developments closely?

GLOSSERMAN: Absolutely, I mean the Chinese of course look at India as both as an Asian rival and as a country with which it has fought a couple of wars. There's a question here about .. the Chinese are very concerned of course that the United States is looking to India as a hedge, and if not only that, perhaps even a cornerstone at some broad attempt to contain China. I think that's a fallacious argument. But there are clearly some people in Washington that dream, if you will, and some people in China who worry about it. On the other hand, I also believe that the Indians are going to be very, very determined to capitalise on their national interest, they are not going to be the pawns in the US play to control China. They will do what they have to and anyone that thinks in those terms, I think is going to be badly, badly mistaken.
 
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The Hindu : National : India offers 10,000 MW of nuclear contracts to U.S.

ndia offers 10,000 MW of nuclear contracts to U.S.

Siddharth Varadarajan
New Delhi: Whether as bait or actual commitment, the United Progressive Alliance government has promised the United States that India will acquire 10,000 MW worth of nuclear power generating capacity from American firms — more than what it is currently negotiating to buy from Russia and France combined.

This startling figure lay buried in the testimony — or “testimoney” — of William Burns, U.S. Under Secretary for Political Affairs, before the Senate Foreign Relations Committee in Washington on September 18.

“The Indian government,” said Mr. Burns, “has provided the United States with a strong Letter of Intent, stating its intention to purchase reactors with at least 10,000 Mega Watts (MWe) worth of new power generation capacity from U.S. firms.” India, he added, “has committed to devote at least two sites to U.S. firms.” Until recently official U.S. expectations of contracts in the nuclear arena were pegged much lower. In testimony to Congress in 2006, Secretary of State Condoleezza Rice had spoken of the U.S. building only one or two reactors.

In its January 16, 2008, replies to Congress, the U.S. State Department said India indicated it planned to import at least eight 1000 MW reactors by 2012 from international sources. In a cautious vein, the State Department spoke of the employment spin-offs “if American vendors win just two of these reactor contracts.”

But some time between January and September, India appears to have sweetened the deal by sending across a “strong Letter of Intent” for the purchase of at least 10 U.S. reactors over an undefined time period.

Speaking to The Hindu on condition of anonymity, official sources familiar with India’s current plans for the expansion of nuclear power said Mr. Burns’s figure indicated two things. “The government appears to have dramatically scaled up both the amount of new nuclear generating capacity it wants built as well as the share within that for imported light water reactors,” said a senior official.

Under the current plans of 20,000 MW worth of nuclear power by 2020, half that amount is supposed to come from India’s indigenous pressurised heavy water reactors, 2,000 MW from its fast breeder reactors, and 8,000 MW from imported LWRs. With Russia already building two 1,000 MW reactors at Koodankulam, that leaves 6,000 MW of capacity to be apportioned between Russia, France and the U.S.

“But if the target is being hiked to 30,000 MW or higher, then obviously the share of imported LWRs is also being scaled up.” In a recent speech, Atomic Energy Commission chairman Anil Kakodkar spoke of India importing up to 40,000 MW of LWRs by 2020. Even so, officials are surprised by the scale of the promise India appears to have made to the U.S. “Even if the number of imported LWRs increases dramatically, the fact is the Americans are in third position in terms of technology,” said an official, expressing surprise that U.S. companies like GE and Westinghouse — which lag far behind their Russian and French counterparts in technological terms and have not built new reactors in the U.S. for decades — could eventually get such a large order.
 
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Open up nuclear power sector to meet energy needs: Montek

Open up nuclear power sector to meet energy needs: Montek

New Delhi, September 19 Making a case for resorting to nuclear power generation to meet India’s growing energy needs, the Planning Commission has said the country needs to vigorously pursue the nuclear energy programme. The plan panel also suggested allowing entry of private sector in the field.
“If we raise nuclear power generation based on imported fuel by 30,000 MW to 40,000 MW in the next 12 years, we can achieve 6,00,000 MW nuclear power output by 2050 by using thorium technology,” Commission deputy chairman Montek Singh Ahluwalia said. He was speaking ahead of Saturday’s plan panel meeting to consider the draft Integrated Energy Policy.

As private companies have made a beeline to enter nuclear power generation sector, Ahluwalia reasoned that the Government could address security concerns. However, amendments to the law would have to be made once the government decides to allow the private sector to set up nuclear plants, he said.

The plan panel meeting on integrated energy policy is significant as it comes barely 72 hours before Prime Minister Manmohan Singh’s visit to the US. Singh he is slated to meet US president George Bush and is likely to ink the Indo-US Civil Nuclear Agreement. The Prime Minister would also attend the 63rd session of UN General Assembly in New York.
 
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NEW DELHI: The Communist Party of India on Sunday said recent disclosures about the India-U.S. nuclear deal vividly showed that the Manmohan Singh government had “misled” the people on each and every count.

At its two-day national executive meeting that started on Saturday, the party pointed out that now the U.S. had said that supply of fuel was only a political commitment between the leaders.

There was no way India would get the technology for enrichment and reprocessing, even as it gave multinational commitment to surrender its nuclear autonomy.

India had committed to purchase nuclear technology and reactors from the U.S. This meant that the country was financing a dying American economy with lakhs of crores of rupees.

Briefing correspondents, deputy general secretary S. Sudhakar Reddy said the national executive had endorsed the call for a Protest Day on September 25, the day Prime Minister Manmohan Singh and U.S. President George Bush were expected to sign the nuclear deal in Washington.

Through a resolution, the party expressed serious concern over the repeated “armed intrusion” of American and NATO forces in Pakistan as a “violation of the sovereignty of Pakistan.”

It said while the forces said these attacks were to destroy Taliban hideouts, the air and missile strikes inside Pakistan resulted in the deaths of many innocent people, including children. “The U.S. imperialists have no right to violate the sovereignty of any country,” the resolution noted. “Today it is Pakistan and tomorrow it could be used against India or some other country. The U.S. is trying to intervene in the internal affairs of other countries,” Mr. Reddy said.

Source: The Hindu
 
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SC dismisses final petition challenging nuclear deal-India-The Times of India

NEW DELHI: The India-US nuclear deal's final date with the Supreme Court through a PIL went on expected lines but not before the Chief Justice allayed wild apprehensions of the petitioner and the government dismissed fears of American strangehold over India's nuclear programme.

The last of the PILs challenging the nuclear deal came up before a Bench comprising Chief Justice K G Balakrishnan and Justices P Sathasivam and J M Panchal only to be dismissed after hearing at length petitioner M L Sharma, who accused the UPA government of succumbing to US pressure and allowing Hyde Act to dictate terms on India.

Responding to the petitioner's allegation that the American law was being imposed on India, Justice Balakrishnan asked, "Which American law is being imposed on India and on what mechanism? Has Parliament approved it? To our knowledge, there is no such step taken by executive.”
 
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x posting:

Review of military missions
OUR SPECIAL CORRESPONDENT
New Delhi, Sept. 21: The Indian military establishment, spurred by the nuclear waiver, has begun a review of overseas deployments with A.K. Antony calling on the army, the navy and the air force “to be ready for force projection” in foreign territories.

“The comfort offered by national boundaries no longer constitutes effective defence,” the defence minister said, setting the tone for discussions initiated by the Integrated Defence Staff. The discussions are being hosted by the Centre for Joint Warfare Studies.

India’s recognition as a power by the nuclear club was an acknowledgement of the country’s “recognition and profile in the world context”, Antony said. The Nuclear Suppliers Group waiver for the India-US nuclear deal was evidence of such acknowledgement.

Currently, Indian policy for overseas military missions allow for troop deployments only under the UN flag and, in exceptional circumstances, if a friendly country were to ask for military aid involving movement of soldiers.

The Telegraph - Calcutta (Kolkata) | Nation | Review of military missions
 
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A K Antony has done a fantastic job as Defence Minister so far.

The current government has some great people - Manmohan of course, Chidambaram, Antony, Pranab Mukherjee, Kamal Nath,
 
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and what exactly has Antony done as a Defence Minister that is particularly great?
 
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Guys,

How's the deal processing in US Congress?
Any progress yet?
 
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Guys,

How's the deal processing in US Congress?
Any progress yet?

Should clear in this month.

PM to discuss nuke deal with Bush during US visit

New Delhi, Sep 22 (PTI) With the Bush administration pushing hard to get the Congressional nod for the Indo-US nuclear deal, Prime Minister Manmohan Singh today said he was looking forward to discussions on the entire range of bilateral issues, including the civil nuclear initiative.
"I look forward to my discussions with him (US President George W Bush) on the entire range of issues on our bilateral agenda with the United States, including our civil nuclear initiative," he said before embarking on a 10-day visit to the US and France.

He said in recent years Indo-US relations have expanded significantly in areas of mutual interest such as education, trade, business, technology, energy and agriculture.

"The engagement between the two countries has strengthened and we are pursuing the multi-faceted cooperation to our mutual benefit," he said.

With just few working days left for the US Congress to take a call on the 123 agreement to clear the decks for the nuke deal in its last lap, the White House is optimistic of wrapping up the pact during Singh's working visit to Washington on September 25 for a meeting with Bush.

Singh's first diplomatic engagement abroad after the crucial waiver that ended the country's 34-year nuclear isolation may also see India and France firm up an agreement on civil nuclear energy cooperation after summit talks with President Nicholas Sarkozy in Paris on September 30. PTI

PM to discuss nuke deal with Bush during US visit
 
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