INDO-U.S.

NUCLEAR DEAL

WHAT IS THE NUCLEAR DEAL?

Bilateral agreement on nuclear cooperation between the USA and the Republic of India. Framework of the deal agreed on 18th July, 2005 Ratified by the US congress on 1st October 2008

KEY ASPECTS OF THE DEAL

The agreement not to hinder or interfere with India's nuclear programme for military purposes.

US will help India negotiate with the IAEA for an India-specific fuel supply agreement.

Washington will support New Delhi develop strategic reserves of nuclear fuel to guard against future disruption of supply.

KEY ASPECTS OF THE DEAL

India and the US agree to transfer nuclear material, non-nuclear material, equipment and components.

Any special fissionable material transferred under the agreement shall be low enriched uranium.

Both the countries agree to facilitate nuclear trade

between themselves in the interest of respective

industries and consumers

KEY ASPECTS OF THE DEAL

Low enriched uranium can be transferred for use as fuel in reactor experiments and in reactors for conversion or fabrication.

Deal include research, development, design, construction,

operation, maintenance and use of nuclear reactors, reactor

experiments and decommissioning.

The US will have the right to seek return of nuclear fuel and technology but it will compensate for the costs incurred as a consequence of such removal.

KEY ASPECTS OF THE DEAL

The US to engage Nuclear Suppliers Group to help India obtain full access to the international fuel market, including reliable, uninterrupted and continual access to

fuel supplies from firms in several nations.

Nuclear material and equipment transferred to India by the US would be subject to safeguards in perpetuity.

HISTORY OF INDIAS NUCLEAR PROGRAMME

1950: The United States helped India develop nuclear energy under the atoms for peace programme.

1968: India refused to sign the NPT, claiming it was biased.

1974: India tested its first nuclear bomb which was made
by the materials from the Canadian reactor in tarapur

which supposed to be used only for civilian purpose.

HISTORY OF INDIAS NUCLEAR PROGRAMME

Oct 8,2008: U.S. president, George W. Bush, signed the legislation on the Indo US nuclear deal. Oct 10,2008: The agreement was signed by Indian External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice.

Stages of Indo US nuclear deal

July 18,2005- Joint statement at Washington DC (Intention to enter into nuclear agreement)

July 26, 2006 - Passed Henry J Hyde United States India Peaceful Atomic Energy Co-operation Act 2006

July 10, 2008 Vote of confidence in Parliament

Stages of Indo US nuclear deal

July 22, 2008 UPA government wins trust vote in Lok Sabha

Sept 27, 2008 US house of Representatives approves Indo-US deal

Oct 8, 2008 President Bush signs the landmark deal

Oct 10, 2008 deal is signed by external affairs minister Pranab Mukherjee and his counterpart in the US

ADVANTAGES OF DEAL TO INDIA

Indias economical growth is 8- 10% a year and in 10 years we wont be able to keep up without clean nuclear energy. In order for India to become a developed nation, we must have nuclear energy. Reliable powers brings more foreign investments to India. No power means no factories, no manufacturing plants, no growth and no job. Thus it will bring more and more job opportunities to India.

ADVANTAGES OF DEAL TO INDIA

Some of India's largest and most well-respected corporations like Bharat Heavy Electricals Limited, National Thermal Power Corporation and Larsen & Toubro eyeing a $100 billion (U.S.) business in this sector over the same time period According to Hindustan Times, nuclear energy will produce 52,000 MW of electricity in India by 2020.

DISADVANTAGES OF DEAL TO INDIA

India have to disclose its all nuclear power plants secrets and also agree to 14 of our nuclear power plants to be under the scanner of International Atomic Power Organization. If India does nuclear test, this agreement gets cancelled. But a) USA will take back all the machinery / equipments / technology supplied to India thus far. b) Those 14 plants will continue to be under scanner irrespective of the status of the agreement. On the other hand, if any of the commitments given by USA is breached by them, then there is no clause for cancelling this agreement.

DISADVANTAGES OF DEAL TO INDIA

Cheaper alternative such as coal easily available The time frame needed to building a new nuclear power plant ranges from 20 to 30 years

Need for Nuclear Deal

India's requirement for adequate and affordable energy supplies to sustain its accelerating economic growth rate Global energy scenario and the long- term implications of increasing pressure on hydrocarbon resources and rising oil prices

WHAT KIND OF TECHNOLOGY WOULD INDIA RECIEVES IN RETURN?

India would be eligible to buy nuclear technology from NSG countries (there are 45 countries in NSG).

India will get Nuclear reactor and Fuel for making power for energy.

India will become the only one country that gets

Nuclear technology without signing NPT.

WHAT USA GETS FROM THIS AGREEMENT?

U.S. expects that such a deal could spur Indias economic growth and bring in $150 bn in the next decade for the nuclear power plants, of which the US wants the share.

U.S. also expects Indias economic growth will make a

counterweight to China.

In the best interest of U.S. to secure its energy needs of coal, crude oil and natural gas.

WHAT IS NPT?

Nuclear Non- Proliferation Treaty (NPT)- is a treaty to limit the spread of nuclear weapons. There are currently 189 countries signed the treaty.

5 of which have nuclear weapons : the US, UK, France, Russia and China.

Only 4 recognized sovereign states are not parties to the treaty: India, Israel, Pakistan and North Korea.