As top Indian and US officials race to conclude negotiations on reprocessing of spent fuel, the Obama Administration is insisting for an assurance from India on nuclear non-proliferation, a sticking point in clearing the way for nuclear commerce.
The requirement of the "assurance", which is seen as a "proximate obstacle" to doing business, has suprised the Indian side which is looking forward to implementation of the 123 Agreement for civil nuclear cooperation signed last year.
The issue is expected to figure in the talks during the upcoming visit of Prime Minister Manmohan Singh here, the first world leader to be the State guest under the ten-month-old Obama Administration.
The Obama administration cited the requirement of the assurance in February last and this has been pushed by Secretary of State Hillary Clinton and Energy Secretary Stevan Chu during their visits to India later.
In the absence of such an "assurance" letter from India, the US Department of Energy would not be able to issue the mandatory licence–called Part 810 (pronounced Part eight ten) – to American companies for doing any kind of civilian nuclear trade with the country, the sources said.
Under Part 810, the Energy Secretary is authorised to give permission, directly or indirectly, to persons or companies in the production of special nuclear material outside the US.
This provision applies to technology transfers and technical assistance to all activities of the nuclear fuel-cycle, including non-power reactors.
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Taken by surprise, the Indian side is understood to have questioned its necessity while noting that New Delhi's position on non-proliferation has been underlined in the 123 Agreement.
Even on the eve of waiver by Nuclear Suppliers Group in September last year, India had issued a statement reaffirming its commitment to non-proliferation and disarmament goals and referred to its voluntary moratorium on nuclear testing.
The two sides are now looking at wrapping up negotiations for setting up of dedicated Reprocessing Facility by India, which was an essential requirement of the 123 Agreement, by the time of Singh's visit here on November 23.
Under the 123 Agreement, the two sides had to start negotiations for Dedicated Reprocessing Facility within six months of signing the pact and conclude the discussions within a year thereafter.
India's Atomic Energy Commission's Chairman Anil Kakodkar was in Washington last week to hold talks with the US officials on this issue.