Tuesday, August 23, 2011

 

U.S. optimistic on nuclear cooperation with India despite hurdles



From The Hindu

The new Nuclear Suppliers Group guidelines on enrichment and reprocessing technology will not in any way detract from the existing United States-India nuclear cooperation and the Obama administration fully supported the so-called clean NSG exception for India, according to U.S. Assistant Secretary of State for South and Central Asia Robert Blake.

With less than three weeks to go before the second round of the India-United States Strategic Dialogue in New Delhi, Mr. Blake, in a web briefing with select media, also denied that the U.S. had any concerns about losing out to potential rivals Russia and France in the bid to supply civilian nuclear products to India.

‘Opportunities for U.S. companies’

Responding to a question from The Hindu on this subject Mr. Blake said, “We think there are really quite important opportunities for American companies still,” pointing out that two reactor parks had been set aside for U.S. corporations in Gujarat and Andhra Pradesh. The U.S. was also looking forward, he said, to India ratifying the Convention on Supplementary Compensation.

Above and beyond that there were also some further technical aspects to address, such as the Part 810 non-proliferation assurances that India is required to supply to the U.S. Department of Energy. “As far as we know, those remain on track and again, that these will be a subject of discussion when the Secretary [of State Hillary Clinton] visits,” the Assistant Secretary noted.

Clinton to visit Chennai

Meanwhile, the State Department announced on Friday that Secretary of State Hillary Clinton would be visiting Chennai during her trip to India. This would mark the first visit by a serving U.S. Secretary of State to the city, said State Department Spokesperson Victoria Nuland, noting that Chennai had "emerged as a hub for the trade, investment, and people-to-people engagement that is driving the U.S.-India relationship.”

According to sources, Ms. Clinton is expected to visit the Ford factory in Chennai and also hold a town hall meeting in the city.

‘Reduce limits on FDI’

Mr. Blake also responded to a query from The Hindu on areas of the Indian economy where the U.S. hoped to get more market access for U.S. companies.

“Our countries are hoping that the Indian Parliament and the Indian government will take actions to reduce some of the limits on foreign direct investment in areas such as retail that will provide huge new opportunities for our companies and help India to increase the level of foreign investment... and jobs in India and also lower the prices of food [which] is of increasing concern to Indian consumers.”

Sources here had earlier indicated that a key announcement on liberalising the multi-brand retail sector towards more foreign investment was likely during the Strategic Dialogue.

Troop withdrawals from Afghan

Speaking to a query on what assurances the U.S. could give India about the safety of its personnel and assets in Afghanistan, Mr. Blake said that there may be a misunderstanding about the planned level of U.S. troop withdrawals, which were “relatively modest.”

Noting that the U.S. would closely consult with India on this process going forward, he added, “I expect that this will be a very important part of our strategic dialogue consultations.”

Mr. Blake also reiterated the U.S.’ “tremendous respect and admiration” for Indian Prime Minister Manmohan Singh’s pledge to raise the total amount of assistance to Afghanistan to $2 billion.

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Monday, March 29, 2010

 

India, U.S. finalise reprocessing agreement

From The Hindu

India and the United States have agreed to the arrangement and procedures under which the reprocessing of spent nuclear fuel will take place at two stand-alone safeguarded sites. New Delhi also retains the right to make additions and modifications.

This will allow India to retrieve recyclable material found in spent fuel from U.S.-origin nuclear plants for further generating electricity.

The reprocessing plants would operate under International Atomic Energy Agency (IAEA) procedures, the U.S. State Department and the Indian Department of Atomic Energy simultaneously announced on Monday.

This is only the third pact signed by the U.S., the earlier ones being with Japan and Euratom, a European consortium.

Until the final round of talks earlier this month, the principal sticking points revolved around the number of facilities that the agreement would cover, and the conditions under which the U.S. could suspend the operation of arrangements and procedures, thereby bring a halt to the reprocessing of U.S.-origin spent fuel in India.

The U.S. wanted the agreement to cover only one reprocessing facility, while India felt the 123 agreement envisaged multiple facilities. In the end, the final text says the pact will apply to two facilities, with India allowed to make additions and modifications.

This clause, Indian officials say, will allow the country to augment its reprocessing capacity without going back to the negotiation table if the need arises for more plants.

As for suspension, Indian officials say the final agreement now allows Washington to suspend the arrangements and procedures only if there is a threat to physical security or to U.S. national security. Earlier, the U.S. wanted this kept very open-ended, while India was for restricting it to “exceptional circumstances.”

India is satisfied with the final outcome, officials said, dismissing both scenarios as “highly unlikely.”

Asked whether the U.S. sought “IAEA plus” safeguards, the officials acknowledged that the agreement had some “padding,” but claimed that this was not “prescriptive.” The implementation of safeguards was entirely the responsibility of the IAEA, they said.

The U.S. State Department said the completion of these arrangements would “facilitate participation by U.S. firms in India's rapidly expanding civil nuclear energy sector.”

With the reprocessing pact out of the way, the U.S. will be “following the progress of [the liability] legislation very closely,” U.S. Assistant Secretary of State Robert Blake said.

While India has been assured of upfront reprocessing rights by Russia and France, Section 201 of the Hyde Act — an American law prescribing the envelope for Indo-U.S. civil nuclear cooperation — asks the U.S. President to ensure that countries offering similar rights do so under comparable terms.

It also states that the pact will be void if the U.S. Congress disapproves of it, despite the U.S. President reporting in “detail” the reasons, description and text of the reprocessing arrangement.

India claims that the Hyde Act is U.S.'s domestic law and its sole reference point is the bilateral 123 civil nuclear agreement.

“These arrangements will help open the door for U.S. firms in India's rapidly expanding energy sector, creating thousands of jobs for the citizens of both our countries,” U.S. Ambassador to India Timothy Roemer said.

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