>   *WHAT EXACTLY IS THIS NUCLEAR DEAL?** *

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> *By Ruma Dubey*

> At the crux of this entire political conundrum, the core issue, which lays
> quite forlorn and forgotten is the nuclear issue. Today the politicians
> might have turned it into an opportunity to topple the UPA Govt but few
> remember that it all started with the nuclear deal.

> Surely few of these politicians would have actually taken the effort to
> read the 82-page nuclear deal and tried to understand what it is all about.
> Somehow that does not come as a surprise at all! So without getting into the
> "political" angle of it, let us take a look at what exactly is this nuclear
> issue. What would India gain if UPA wins the vote and what we stand to lose
> if the deal gets cancelled?

> *What exactly is nuclear power? *

> Nuclear power is generated using Uranium, which is a metal mined in various
> parts of the world. It produces around 11% of the world's energy needs, and
> produces huge amounts of energy from small amounts of fuel, without the
> pollution that you'd get from burning fossil fuels.

> * *

> *Where does India currently stand on nuclear power? *

> In India, nuclear power is being produced under the Nuclear Power
> Corporation of India. Seventeen reactors are under operation and five
> reactors are under construction. These power projects are highly capital
> intensive and currently, takes care of 2.8% of the power needs of the
> country. Amongst the 30 countries in the world that use nuclear power,
> India's rank at 27 is one of the lowest.

> * *

> *Why nuclear power? *

> To take India's economic growth rate to greater heights, there is no doubt
> that power would be required as the main fuel for this growth. Though coal,
> thermal and hydro fuel would remain India's dominant energy mix, it cannot
> continue to depend on coal alone. Global warming considerations and the
> immediate availability of clean coal technologies may constrain the coal
> route at least in the short term. Hydropower may also face constraints that
> arise from changes in the hydrological cycle triggered by long term climatic
> change. Hence having nuclear power in India's energy portfolio is crucial
> for preserving India's energy security **

> *What does 123 agreement mean? *

> The 123 Agreement is the terms of engagement which operationalizes the
> treaty agreement between India and USA for transfer of civil nuclear
> technology. India's right to test nuclear weapons, guarantees of lifetime
> fuel supply and India's right to reprocess the spent fuel have all been
> covered in this agreement.

> * *

> *What is the Hyde Act?*

> The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation
> Act of 2006, it is known as the Hyde Act. It is the legal framework for this
> deal and provides the legal basis for the 123 Agreement with India.

> *What would the deal with USA mean for India? *

> The Govt has chalked out a roadmap wherein over the next 25 years, through
> the deal, it has set a target of generating 20,000 MWe  (unit of nuclear
> power) as against the current 3,900 MWe.

> * *

> The biggest advantage, which the UPA Govt is actually seeking is projecting
> to the world that it an ally of USA, which is a superpower in the world of
> today. The deal would provide India with access to American civilian nuclear
> technology. It would finally open up the door to US military technology,
> especially the fascinating US missile defense system.

> Once the new reactors are set up, and they go critical without any time
> overrun, the nuclear power generation would take care of 8% of India's total
> power requirement. More than 80% of the power generated in India comes from
> coal and thermal. And that will continue but just as oil has become critical
> today, coal will also one day reach such a stage. And unless we have backups
> ready, our entire country could get unplugged. Having nuclear power could
> help India, over the long run, offset the rising cost of coal.

> Yes, price of uranium is also mounting. Between 2005 (when the India-US
> nuclear deal was first proposed) and 2007 (when the 123 Agreement was
> finalised), since then, the spot price of uranium has quadrupled. According
> to a June 2008 market assessment, a further 58 per cent increase is
> expected. But remember unlike oil, we are dealing with more mature economies
> here who will supply uranium and hopefully, they will prevent the present
> cartelization which we see in oil.

> * *

> *What is the cost of nuclear power? *

> At present, power from existing nuclear reactors costs, after huge
> subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega
> power project in Madhya Pradesh will be supplying power at Rs 1.196 per
> unit. The real cost of power from existing nuclear reactors is around Rs 4
> per unit; the cost of power produced by new reactors will be around Rs 5.50
> per unit. But the economies of scale would soon start giving the advantages.
> Plus, these costs are today at the present levels of coal price, so when
> price of coal escalates further, cost would only go up.

> * *

> *What would the deal mean to Indian companies? *

> India has plans to set up 15 plants over the next 20 years. Business worth
> $100 billion is expected to be generated from this nuclear deal over the
> next 20 years. Apart from USA and France, which would benefit immensely,
> Indian companies too will get a part of this juicy pie. Over 400 Indian
> companies are expected to benefit, mainly for those involved in making
> equipment for nuclear power plants.

> * *

> *Why did the Left withdraw support?*

> The Left alleged that the deal would undermine the sovereignty of India's
> foreign policy. It has also stated that the Indian government was hiding
> certain clauses of the deal, which would harm India's indigenous nuclear
> program.

>  *Thanks & Regards...** *