Necluer deal


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  • Thus this Paragraph 16 rule will effectively bind India to the Hyde Act’s conditions on the pain of a U.S.-sponsored cut-off of all multilateral cooperation. India will not be able to escape from the U.S.-set conditions by turning to other suppliers. [
  • The 123 agreement between India and USA refers to Sec. 123 of the U.S. Atomic Energy Act. There is a ban on transfer of nuclear technology to other countries under this Act. The Hyde Act was passed by U.S.A to make an exception for India, to enable transfer of technology for civil nuclear energy
  • Necluer deal

    1. 1. <ul><li>PRESENTED BY </li></ul><ul><li>AMIT KUMAR SAINI </li></ul>
    2. 2. <ul><li>Refers to a bilateral accord on civil nuclear cooperation between the United States of America and the Republic of India </li></ul><ul><li>Framework: July 18, 2005 joint statement by Indian Prime Minister Manmohan Singh and then U.S. President George W. Bush, under which: </li></ul><ul><ul><li>India agreed to separate its civil and military nuclear facilities and, </li></ul></ul><ul><ul><li>Place all its civil nuclear facilities under International Atomic Energy Agency (IAEA) safeguards and, </li></ul></ul><ul><ul><li>In exchange, the United States agreed to work toward full civil nuclear cooperation with India </li></ul></ul><ul><li>The agreement was signed by Indian External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice, on 10 October,2008. </li></ul>
    3. 3. <ul><li>The deal took more than 3 years to come to fruition, as it had to go through several complex stages, mainly being: </li></ul><ul><ul><li>Amendment of U.S. domestic law </li></ul></ul><ul><ul><li>Civil-military nuclear Separation Plan in India </li></ul></ul><ul><ul><li>India-IAEA safeguards (inspections) agreement </li></ul></ul><ul><ul><li>Grant of an exemption for India by the Nuclear Suppliers Group(an export-control cartel that had been formed mainly in response to India's first nuclear test in 1974) </li></ul></ul><ul><ul><li>Stiff Opposition in India </li></ul></ul>
    4. 5. <ul><li>India's long term plan is to expand and fuel its civilian nuclear power generation capacity from its current output of about 4GWe (GigaWatt electricity) to a power output of 20GWe by 2020. </li></ul><ul><li>However, the amount of nuclear fuel required for the electricity generation sector is far greater than that required to maintain a nuclear weapons program. </li></ul><ul><li>Estimated annual Uranium production – 300 tonnes </li></ul><ul><li>Estimated annual Uranium consumption – 450 tonnes </li></ul><ul><li>And, India's estimated reserve of uranium represents only 1% of the world's known uranium reserves which affects Indian nuclear power generation capacity </li></ul><ul><li>Therefore, India needs to carry out nuclear commerce with other countries to access civilian nuclear technology and fuel. </li></ul>
    5. 7. <ul><li>In response to a growing Chinese nuclear arsenal, India conducted a nuclear test in 1974. </li></ul><ul><li>Following this, other states led by U.S. set up an informal group NSG (Nuclear Suppliers Group), leaving India outside the international order. </li></ul><ul><li>Thus India was forced to develop its own resources for each stage of the nuclear fuel cycle and power generation. </li></ul><ul><li>It also developed its own nuclear weapons technology with a specific goal of achieving self-sufficiency for all key components for weapons design, testing and production. </li></ul><ul><li>Since India conducted 5 more tests in May’1998, it was subject to international sanctions and isolation for its civil program. </li></ul><ul><li>In other words, the NSG's uranium export restrictions mainly affected Indian nuclear power generation capacity. </li></ul>
    6. 9. <ul><li>On March 2’2006, Prime Minister Singh and President Bush announced that the preparation of a separation plan had been successfully completed. </li></ul><ul><li>Need: India’s 1974 peaceful nuclear explosion, which demonstrated to most observers that nuclear technology originally transferred for peaceful purposes could be misused. That test also provided the impetus for creating the Nuclear Suppliers Group. </li></ul><ul><li>Of the 15 operating power reactors: </li></ul><ul><ul><li>four are under safeguards – two at Tarapur and two at Rajasthan </li></ul></ul><ul><ul><li>Two reactors under construction at Kudankulam will be under IAEA safeguards </li></ul></ul><ul><ul><li>11 remaining reactors operating not under safeguards and five PHWRs under construction </li></ul></ul>
    7. 10. <ul><li>The separation plan appears to serve two purposes: </li></ul><ul><ul><li>Politically, it could help demonstrate India’s commitment to nonproliferation, and </li></ul></ul><ul><ul><li>Legally, it must ensure U.S. compliance with Article I of the Nuclear Nonproliferation Treaty (NPT) — that U.S. cooperation does not in any way assist a nuclear weapons program in a non-nuclear weapon state </li></ul></ul><ul><li>The plan includes 14 reactors to be declared as civilian, or approximately 65% of India’s total operating energy capacity </li></ul>
    8. 11. <ul><li>Nuclear Non-Proliferation Treaty (NPT or NNPT) is a treaty to limit the spread of nuclear weapons, opened for signature on July 1, 1968. </li></ul><ul><li>Out of the 189 countries party to the treaty, five have nuclear weapons: the United States, Russia, the United Kingdom, China and France (also permanent members of the UN Security Council). </li></ul><ul><li>All signatories, including nuclear weapon states, are committed to : </li></ul><ul><ul><li>the goal of total nuclear disarmament </li></ul></ul><ul><ul><li>non proliferation, and </li></ul></ul><ul><ul><li>right to peacefully use nuclear energy and an obligation to cooperate on civilian nuclear technology </li></ul></ul><ul><li>The Bush Administration formally recognises India's strong non-proliferation record even though it has not signed the NPT, and thus also justifies its nuclear pact with India. </li></ul>
    9. 12. <ul><li>IAEA or International Atomic Energy Agency has been designed to verify that nuclear energy is not diverted from peaceful use to weapons programs. </li></ul><ul><li>The agreement currently applies safeguards to six Indian nuclear reactors under safeguards agreements concluded between 1971 and 1994. </li></ul><ul><li>It aims to bring a total of 14 Indian reactors under safeguards by 2014. </li></ul><ul><li>IAEA Director General Mohamed ElBaradei and Ambassador Saurabh Kumar of India sign the India Safeguards agreement, Vienna, 2 Feb, 2009. </li></ul>
    10. 13. <ul><li>The NSG – Nuclear Suppliers Group was originally established &quot;to ensure that nuclear trade for peaceful purposes does not contribute to the proliferation of nuclear weapons or other nuclear explosive devices.&quot; </li></ul><ul><li>Under the waiver, India can proceed to import uranium fuel, nuclear materials, equipment and technologies for its civilian nuclear programme. But it can also divert domestic uranium exclusively for weapons purposes. </li></ul><ul><li>In addition, India can produce more bomb fuel from its dedicated military nuclear facilities and fast-breeder reactors, which it can maintain and expand. </li></ul><ul><li>History : On resistance from some countries, India was asked to accept three conditions to resume nuclear trade - periodic review of compliance with India's non-proliferation pledges, exclusion from trade of sensitive technologies such as uranium enrichment and spent fuel reprocessing, and cessation of nuclear commerce in case India tests. India only accepted the first condition. </li></ul>
    11. 14. <ul><li>The opposition was due to inconsistency between the Prime Minister Manmohan Singh's statement in Indian Parliament and Bush Administration's communication to the House Foreign Affairs Committee, which says that: </li></ul><ul><ul><li>The 123 Agreement is not inconsistent with the Hyde Act's stipulation—the little-known 'Barack Obama Amendment' -- that the supply of nuclear fuel should be &quot;commensurate with reasonable operating requirements&quot;. This implies a severe restriction to the 'strategic reserve' that is crucial to India's nuclear program. </li></ul></ul><ul><ul><li>Moreover, the agreement, as a result of its compliance with the Hyde Act, contains a direct linkage between shutting down US nuclear trade with India and any potential future Indian nuclear weapons test. </li></ul></ul>
    12. 16. <ul><li>On June 9, 2008, India formally submitted the safeguards agreement to the IAEA. </li></ul><ul><li>On June19’ 2008, Prime Minister Dr. Manmohan Singh threatened to resign his position if the Left Front, whose support was crucial for the ruling continued to oppose the nuclear deal. </li></ul><ul><li>On July 8, 2008, Prakash Karat (General Secy, CPI(M)), announced that the Left Front is withdrawing its support to the government to go ahead on the United States-India Peaceful Atomic Energy Cooperation Act. </li></ul><ul><li>The Samajwadi Party (SP) which was with the Left Front opposed the deal, but changed its stand after discussing with ex-president of India and scientist Dr A P J Abdul Kalam. </li></ul><ul><li>On 22 July 2008 the UPA faced its first confidence vote in the Lok Sabha after the CPI(M) led Left Front withdrew support over India approaching the IAEA for Indo-U.S. nuclear deal. The UPA won the confidence vote with 275 to 256 votes. </li></ul><ul><li>There were heavy accusations against Congress regarding &quot;buying&quot; up of MP's, reportedly for Rs.250 million. </li></ul>
    13. 19. <ul><li>Nuclear non-proliferation - important in helping to advance the non-proliferation framework : India has maintained a non-proliferation record, though it hasn’t signed the NPT </li></ul><ul><li>Economic considerations - India's stated objective is to increase the production of nuclear power generation from its present capacity of 4,000 MWe to 20,000 MWe in the next decade. Financially, the U.S. expects the deal would bring in $150 billion in the next decade, of which the U.S. wants a share </li></ul>
    14. 20. <ul><li>India’s economical growth is 8-10 % a year and it won’t be able to keep up without clean nuclear energy. </li></ul><ul><li>Nuclear energy is a must to become a developed nation. </li></ul><ul><li>Reliable power resources bring more foreign investments to India. </li></ul><ul><li>This will bring more and more job opportunities to India. </li></ul><ul><li>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. </li></ul><ul><li>According to Hindustan Times, nuclear energy will produce 52,000 MW of electricity in India by 2020. </li></ul>