N-deal: India gears up for another haul

Big task ahead as NSG, IAEA and opposition parties' resistance yet to be overcome.

With the diplomatic negotiations for the Indo-US civilian nuclear deal virtually complete, India will move into the next lap of multilateral negotiation and domestic legislation: Getting the International Atomic Energy Agency (IAEA) and the 45-member Nuclear Suppliers' Group (NSG) to endorse the nuclear agreement and allow supply of fuel; getting Parliament to assent to the deal; and amending the Atomic Energy Act to pave the way for non-nuclear government and private companies to take part in nuclear power generation.

Also, the US Congress has to endorse the 123 Agreement, which is the kernel of the partnership, through a yes-or-no vote. No amendments can be pressed at this stage.

Private companies engaged in nuclear power generation are knocking at India's door for a share of the business, which is dying the world over but just starting in India. Companies like Westinghouse and GE have closed down their nuclear power businesses in the US, but are actively looking at opportunities in India.

The United States India Business Council (USIBC) had, earlier this year, brought representatives of 18 companies that are a part of the civil nuclear industry to India.

The companies included GE Energy, Nuclear Energy Institute, Thorium Power, and WM Mining Company. The Mumbai-based Nuclear Power Corp India Ltd (NPCIL), which builds and operates India's atomic stations that generate electricity, is already in touch with French nuclear power major Areva NP and Russian nuclear plant manufacturer Atomstroyexport.

However, between the current state of play and full-fledged nuclear commerce, India has to convince the NSG, of which it is not a member, that although it is a nuclear weapons state and has not signed the Non-Proliferation Treaty, it is a responsible nation committed to the NSG guideline that nuclear trade for peaceful purposes be not be allowed to contribute to the proliferation of nuclear weapons.

NSG Guidelines facilitate the development of trade in this area by providing the means, so that obligations to facilitate peaceful nuclear cooperation can be implemented in a manner consistent with international nuclear non-proliferation norms.

India has many friends in the NSG, though the Nordic group of countries may present some obstacles, especially on the manner in which the issue of future testing has been circumvented in the deal with the US.

Much more difficult will be the issue of amending the Atomic Energy Act, with both the Left and the BJP opposed to the concessions given to the US on the issue.

The 123 Agreement is sure to generate fireworks in the monsoon session of Parliament, with opposition leaders and MPs expected to question the government on the fate of India's indigenous three-stage nuclear programme. All the "what-if" scenarios are expected to be conjured up at this stage.

What's left to be done

US Congress endorses the deal through a yes-or-no vote. No amendment is possible at this stage.

India tells the International Atomic Energy Agency (IAEA) that its reprocessing facility will be open to inspection. It also tells the Nuclear Suppliers' Group that nuclear power is safe with India.

The deal is discussed in Parliament, where the Opposition's objections will have to be addressed: These may include the fate of India's indigenous nuclear programme and what happens with further testing when the IAEA will track every uranium atom that India has.

The Atomic Energy Act is amended by Parliament to allow nuclear commerce and India draws up guidelines for investment in this area.