India- U.S. Nuclear Cooperation

General Studies Paper -2

Context: The U.S. Assistant Secretary of State for Energy Resources recently said, India-U.S. nuclear cooperation envisaged under the nuclear deal two decades ago is “an important piece of unfinished business”.

• Speaking on clean energy and climate change, he stressed on getting away from Chinese domination of clean technology supply chains.
• He also emphasises using India’s capacities in manufacturing and labour costs to build up a real alternative supply chain.

India-U.S. Nuclear Cooperation

History and Milestones:

• 1974: India conducts its first nuclear test, leading to U.S. sanctions and limited cooperation.
• 2005:The landmark S.-India Civil Nuclear Agreement is signed, paving the way for civil nuclear trade and cooperation.
• 2008:The U.S. Congress approves the agreement, allowing nuclear fuel and technology transfers to India.
• 2010: The first U.S.-built nuclear power plant in India begins construction in Kudankulam.
• 2015:The Westinghouse Electric Company signs an agreement to build six nuclear reactors in India in Kovvada, Andhra Pradesh.

The U.S.-India Civil Nuclear Agreement

• The U.S.-India Civil Nuclear Agreement, also known as the 123 Agreement, is a landmark agreement signed in 2005 that marked a significant shift in the nuclear relationship between the two countries.

Key Provisions:

• Separation of Programs: India agreed to separate its civilian and military nuclear facilities, placing civilian facilities under International Atomic Energy Agency (IAEA) safeguards.
• Nuclear Trade: The agreement allowed the U.S. to supply nuclear fuel and technology to India for its civilian nuclear program.
• Non-proliferation Commitments: India reaffirmed its commitment to non-proliferation and agreed to additional safeguards against transferring sensitive nuclear technology or materials.

Expected benefits for India:

• Energy Security: Reduced dependence on fossil fuels for electricity generation, which is crucial for a growing economy. Cleaner energy source with lower greenhouse gas emissions.
• Economic Growth:Creation of jobs in the nuclear power sector, potential for attracting investments and technology transfers.
• Strategic Partnership:Stronger relationship with the U.S., with implications for regional security and global non-proliferation efforts.
• Access to Advanced Technology:Acquisition of modern nuclear reactors and fuel, promoting technological advancements and improved safety standards.
• Environmental protection: Reduced reliance on coal-fired power plants, contributing to lower air pollution and greenhouse gas emissions.
• Regional stability: Cooperation on nuclear energy could foster trust and collaboration between India and neighboring countries.
• Global leadership: Demonstrating responsible nuclear cooperation could set a positive example for other countries.

Current Status:

• Even after eight years of announcing that the nuclear deal was done in 2015, there is still no techno-commercial offer.
• The progress has been slower than initially expected due to various Challenges.
• Domestic challenges in India: Complex regulatory procedures, limited infrastructure, and liability concerns.
• Geopolitical considerations:Evolving global nuclear landscape and concerns about technology transfer.
• S. domestic politics: Concerns about non-proliferation and Congressional approval processes.

Measures/Suggestions:

• India and the U.S. needs to make fresh efforts for practical cooperation in the civil nuclear energy sector.
• Also, India needs to revise laws to enable private companies to participate in the civil nuclear sector.
• Further, there is a “shared interest” to move forward, both on the large traditional reactors which were foreseen as part of the nuclear deal and also on Small and Modular Reactor (SMR) technology.

Way Ahead:

• Despite the challenges, both countries remain committed to the agreement and continue to work towards expanding cooperation.
• The success of the agreement will depend on addressing outstanding challenges and building mutual trust to unlock its full potential.