India - nuclear power

IAEA decision boosts India-US nuclear deal

Friday 01 August 2008

In a key step on India's path to nuclear energy, the UN atomic watchdog on Friday approved an inspections plan for the country.

The International Atomic Energy Agency (IAEA), nuclear watchdog for the United Nation, approved an inspections plan for India by consensus on Friday. The move is a key step towards finalising a U.S.-Indian civilian nuclear cooperation deal signed in March 2006.

Controversy and misgivings surround project

According to FRANCE 24’s correspondent in Vienna Maurin Picard, “The deal has been surrounded by controversy, with many countries complaining of a so-called nuclear exception”.

The accord would open up to India the world market in atomic materials and technology for civilian use. But this marks the very first time that a nuclear state not having signed the global Non-Proliferation Treaty (NPT) would be allowed to enter into a similar agreement.

Furthermore, although IAEA chief Mohammed El Baradei said that the draft “maintained all the agency's legal requirements”, he touched on diplomatic concern about parts of the draft being unclear about divisions between civil and military atomic sectors. This may give rise to a loophole which would allow India to transfer bomb-grade fuel separated from civilian stocks to its military programme.

Baradei stated that there were “no conditions for discontinuation ... other than those provided by the safeguards agreement itself.” Critics of the deal condemn this indefinite nature of the agreement. Some diplomats were concerned that if ever India conducted a nuclear test in the future, (despite its current voluntary moratorium) and, in response, its nuclear fuel imports were cut off, the agreement would allow the country to halt inspections unilaterally.

Defending the deal, Washington and close allies say that it ushers giant India towards the non-proliferation mainstream and fights global warming by promoting use of low-polluting nuclear energy in developing economies, thus reducing high oil and gas costs as well.

Race against time

The deal, however, still has two crucial hurdles to cross. First, India needs an unprecedented waiver from the Nuclear Suppliers Group (NSG) - a group of 45 states exporting nuclear fuel and technology that bans trade with non-NPT states. Diplomats said India's pursuit of an unconditional NSG exemption faces likely demands by some members for a binding pledge of no more nuclear tests.

Secondly, the deal needs to be ratified by the US Congress to be implemented, and with the US Presidential elections approaching, time is running short. Washington and New Delhi have been fiercely lobbying the NSG countries to get the deal ratified before the presidential elections in November.

The NSG’s decision is thus pivotal for the deal. The first meeting of the organisation is expected to be held on Aug. 21-22, when a clearer picture is expected to be obtained.