THE US-INDIA

NUCLEAR DEAL

 INTRODUCTION-

 The United States-India Peaceful Atomic Energy

Cooperation Act of 2006 is the legal framework for a
bilateral pact between the United States and India under
which the U.S. will provide access to civilian
nuclear technology and access to nuclear fuel in exchange
for IAEA-safeguards on civilian Indian reactors.

 On March 2, 2006 in New Delhi, George W. Bush and

Manmohan Singh signed a Civil Nuclear Cooperation
Agreement, following an initiation during the July 2005
summit in Washington between the two leaders over
civilian nuclear cooperation.
 Background

 Signatories to the Nuclear Non-Proliferation Treaty

(NPT) are granted access to civilian nuclear technology
from each other as well as nuclear fuel via the
Nuclear Suppliers Group in exchange for IAEA-verified
compliance of the NPT tenets,however India was not sign
this treaty as a result, India has not been granted access to
civilian nuclear technology from any other country.
 Terms of the deal

1 India agrees to allow inspectors from the

International Atomic Energy Association (IAEA), the United
Nations' nuclear watchdog group, access to its civilian
nuclear program

2 India commits to signing an Additional Protocol (PDF)—

which allows more intrusive IAEA inspections—or its civilian
facilities.

3 India agrees to continue its moratorium on nuclear weapons

testing.

4 India commits to strengthening the security of its nuclear

arsenals.

5 U.S. companies will be allowed to build nuclear reactors in

India and provide nuclear fuel for its civilian
energy program

6 India works toward negotiating a

 INDIA – US NUCLEAR DEAL – The
Benefits
 How does US benefit with this Deal?

1 If India sets up 10 large size nuclear power plants, in next

15 years, India will import technology and hardware from
US for at least half of these projects,each of these plants at
a green field site will cost about $4 billion. In short, orders
worth $15-20 billion could be placed with the US companies
in next 6 to 8 years.

2 Fund for these installations will come to India either in form

of FDI or soft & commercial loans. Banks and equipment
manufacturers abroad will be delighted to make this
amount available to India. In return India will pay it back
with goods and services export.
3. Another unstated benefit for US appears to be their
assessment that India could be a counter weight to a “rising
China” in the region.

4 The growing energy demands of the Indian and Chinese

economies have raised questions on the impact of global
energy availability. The Bush Administration has concluded
that an Indian shift toward nuclear energy is in the best
interest for America to secure its energy needs of coal,
crude oil, and natural gas.
 What does India get out of the Deal?

1 India would be eligible to buy U.S. dual-use nuclear

technology, including materials and equipment that could
be used to enrich uranium or reprocess plutonium,
potentially creating the material for nuclear bombs. It
would also receive imported fuel for its nuclear reactors.

2 U.S. investment that could spur India's economic growth

and bring in $150 billion in the next decade for nuclear
power plants and to modernize the country's
transportation system

3 After 50 years of isolation, India will have the opportunity

to say something, in world forums like UN, WTO and
World monetary lending institutions, and be heard. This
was not the case previously .
4 It is India's stated objective to increase the production of
nuclear power generation from its present capacity of
4,000 MWe to 20,000 MWe in the next decade which can
not be acquired without signing this deal.

5 India could become a full member of the select group of

G-8 members.

6 Nuclear energy would save 145 million tonnes of CO2 per

year
 What do proponents say about the deal?

1 It would encourage India to accept international

safeguards on facilities it has not allowed to be inspected
before.

2 Recognizes that India has a good record on proliferation

3 Rewards India's decision to adopt similar nuclear export

standards as those imposed by the
Nuclear Suppliers Group (NSG).
 What are the objections to the agreement?

1 The safeguards apply only to facilities and material

manufactured by India beginning when the agreement
was reached.

2 The deal does not require India to cap or limit its fissile
material production

3 It does not require India to restrict the number of nuclear

weapons it plans to produce.

4 There are far more cost-efficient ways to improve India's

energy and technology sectors.
 VIEW OF LEFT FRONT ON N-DEAL

 Acc to the Communist Party of India (Marxist) Polit Bureau

member B.V. Raghavulu signing the nuclear deal with the
United States would make India a puppet in the hands of
that country.

 Mr. Raghavulu drove home the point that importing

uranium from the US would compound the problems of the
common man because on importing the uranium from US,
present cost of a unit of power which is Rs.2.50,could go up
to Rs.9 a unit when uranium is used.

 He said that import of gas and oil from Iran and Iraq was a
better alternative as it could lower unit prices considerably
in India

 It is also said by left parties that signing this agreement

would be a threat to national security because it prohibits
India to do nuclear tests.
RECENT HAPPENINGS ON N-DEAL ISSUE

Aug-18-07 – CPM wants brakes on N-deal with US.

Aug-23-07 –Unrelenting on its opposition to the Indo-Us N-

deal CPM on 23 made it clear that the future of the UPA
coalition lies with the government not operationalise the
agreement.

Oct-18-07 – PM on a backfoot by saying , N-deal will

happen but no time line.
 Oct-13-07 – N-deal will go, but govt. wont .It is not end of
life, says PM.

 Oct-25-07 – US sets year–end deadline for nuke deal

otherwise India have to pay consequences.

 Oct-26-07 – CPM: US dead line an insult to India.

 CONCLUSION

 As said, When we want something we have to loose some.

This is the case with N-deal , if we want economic
progress of our country, we need energy source and
investment thus we have to sign the deal inspite of some
tough regulations on us , because there is no other quick
source of getting energy source and investment for our
country.

Presented
by-
ANANT
SAXENA