engagement in the world, this will go through, we hope, by August,''
Sharma told Bloomberg News in an interview yesterday in Singapore.
Prime Minister Manmohan Singh is renewing his push for the agreement
signed with President George W. Bush in 2005 after he survived a
confidence vote in parliament July 22. Still, the accord can only be
ratified by U.S. lawmakers after winning the consent of the
International Atomic Energy Agency and the 45- nation Nuclear
Suppliers Group.
``We feel that the U.S. is sincere to engage with India and the rest
of the international community because it will be a mutually
beneficial engagement,'' Sharma said.
The deal, which will help boost India's power supplies and accelerate
growth, needs to be approved by Congress before U.S. presidential
elections in November. The White House has said it's ``mindful'' of
the legislative calendar and expressed optimism the deal will be
approved when it reaches Congress.
Prospects for the accord boosted shares of nuclear equipment makers
yesterday as the agreement can generate more than $10 billion of
orders for Indian companies, according to UBS AG.
Bharat Heavy Electricals Ltd., India's biggest power- equipment maker,
had its biggest gain in five months, leading advances by Larsen &
Toubro Ltd. and Areva T&D India Ltd., the local unit of the world's
biggest builder of nuclear reactors.
Fuel, Reactors
The accord gives India access to fuel and nuclear reactors without
joining the 1970 Nuclear Non-Proliferation Treaty. The agreement will
lift restrictions imposed on suppliers of nuclear technology after
India tested atomic weapons in 1974.
The agreement divided India's political parties and prompted Singh's
main ally, the communist parties, to withdraw support to the
government this month, saying it would weaken India's ability to
pursue an independent foreign policy.
That forced Singh to prove his majority in parliament. His Congress
party-led coalition won enough votes to extend its four- year term and
revive the push for the deal.
The IAEA board is scheduled to vote Aug. 1 in an extraordinary meeting
on whether to endorse the accord, which will give inspectors access to
14 civilian atomic reactors. The inspections agreement is a key
condition for any U.S.-Indian nuclear cooperation treaty.
The agreement goes to the Nuclear Suppliers Group where the U.S.,
U.K., France, Russia, Japan, China and, most recently, Australia have
already voiced support for giving India the necessary exemptions it
needs to conduct trade in atomic material and equipment with member
countries, the U.S.-India Business Council said this week.
More Power
Singh says the accord will help increase nuclear generation 10-fold
and end blackouts in the world's second-most populous country after
China. Shortage of power and infrastructure shaves 2 percentage points
from India's annual economic growth, the finance ministry estimates.
India needs to bridge that deficit to sustain growth of more than 10
percent and ease poverty.
The Bush administration bills the agreement as a way to help India
meet its energy needs, bolster non-proliferation controls and
strengthen U.S. relations with the Asian subcontinent.
``There is no reason why it shouldn't go through,'' Sharma said.
``This is a commitment made between the leaderships of the two largest
democracies in the world. And we all honor our commitments.''
To contact the reporters on this story: Cherian Thomas in New Delhi at
cthom...@bloomberg.net; Liza Lin in Singapore at lli...@bloomberg.net.
Last Updated: July 24, 2008 00:47 EDT
On Wed, Jul 23, 2008 at 4:17 PM, Akhil Jain <akhiljai
...@gmail.com> wrote:
> WHAT EXACTLY IS THIS NUCLEAR DEAL?
> 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...
--
M.Ganapathy
