India PM meets US President in Japan, to go ahead with nuclear deal

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The nuclear energy agreement process began when Bush and Singh agreed in July 2005 that US companies would sell nuclear technology to India, opening a market for equipment, fuel and reactors from Fairfield, Connecticut-based General Electric and Monroeville, Pennsylvania-based Westinghouse Electric.

The US Congress in December 2006 passed a legislation allowing the accord to proceed, reversing decades of US policy that barred nuclear exports to India after the South Asian country tested an atomic bomb in 1974 without signing the Non- Proliferation Treaty (NPT).

However, the nuclear deal has to clear further measures before becoming operational. India has to sign a safeguards agreement with the International Atomic Energy Agency (IAEA), the United Nations' nuclear watchdog, for allowing international inspections of its civilian nuclear reactors. The Nuclear Suppliers Group (NSG), a 45-nation forum dedicated to limiting the spread of atomic weapons, has to also approve the deal to allow atomic commerce. The agreement then needs to be ratified by the US Congress.

India and the US also have to finalize the bilateral 123 Agreement to make the nuclear deal operational.

The duration of the agreement, that will allow US to transfer nuclear technology to India for civilian purpose, is 40 years.

The agreement will allow India and the US to engage in full civil nuclear cooperation activities covering nuclear reactors and aspects of the associated nuclear fuel cycle including technology transfer on an industrial or commercial scale between the governments or authorized persons.

Under the agreement, India can develop strategic reserve of nuclear fuel to guard against any disruption of supply over the lifetime of its reactors.

Most importantly, the US has agreed to fuel supply for the 14 nuclear reactors even if India conducts a test. It will help India source fuel from "friendly countries," including Russia, France and the UK, and create a fuel reserve so that fuel supplies remain uninterrupted, according to the draft agreement. The US will also aid India's efforts in the Nuclear Suppliers Group (NSG) to obtain "full access to the international fuel market, including reliable, uninterrupted and continual access to fuel supplies from firms in several nations."

According to the agreement, the US acknowledges India as a state with "advanced nuclear technology" which will assume the "same responsibilities" as countries with advanced nuclear technology.

A final deal will mean US civilian nuclear trade with India will be permitted in exchange for safeguards and UN inspections at India's 14 civilian nuclear plants. Eight military plants will be off-limits.

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