US-India talks still face hurdles

With the first formal round of talks on the next stage of the USA and India's planned nuclear deal due to start on 26 March, several hurdles still remain to an agreement that would allow nuclear materials trade between the two countries.

The bilateral talks on the so-called 123 Agreement are due to take place in New Delhi. Under Section 123 of the US Atomic Energy Act of 1954, an agreement is a pre-requisite for nuclear deals between the USA and any other nation. India has been in a state of nuclear technology isolation since carrying out nuclear weapons tests in the 1970s, excluding it from the 1970 Nuclear Non-Proliferation Treaty (NPT). However, four of India�s nuclear power plants are under facility-specific safeguards arrangements with the IAEA.

The US Congress approved exemptions to US non-proliferation laws last year to enable the deal to go ahead, although a detailed agreement over which technologies India would receive has not been reached.

Reprocessing of spent fuel is one bone of contention. India's right to reprocess spent fuel to recover plutonium is non-negotiable, according to Atomic Energy Commission chairman Anil Kakodkar. The country has long been working towards a closed fuel cycle involving the use of plutonium fuel with thorium in fast breeder reactors (FBRs). One FBR is under construction at Kalpakkam, and a test FBR has been operational in India since 1985.

Another likely problem area is a requirement for India to foreswear nuclear weapons testing. Part of the US law could require India to return any nuclear materials or technology to the US if it were to conduct further weapons tests. Although India currently has a unilateral moratorium on weapons tests, it is unwilling to make that become a bilateral legality.

Ahead of the talks, US Energy Secretary Samuel W Bodman made a three-day visit to India for discussions with Indian leaders and made a strong case for pushing forward the deal as a way to reduce dependence on fossil fuels and to achieve energy security. Bodman was keen to stress that the deal should not be viewed as a threat to New Delhi's sovereignty or its nuclear programme, and would be beneficial to both parties.

Another requirement for the deal to progress is changes to the international export controls set by the Nuclear Suppliers Group (NSG), a group of countries which seeks to contribute to non-proliferation of nuclear weapons through the implementation of guidelines for nuclear and related exports. One NSG country, Austria, has already voiced its unwillingness to support changes to the rules.

Further information

WNA: Nuclear Power in India information paper
WNA: Policy Document and Treaties reference documents

WNN: Insight Briefing US brings India in from the cold
WNN: USA to implement Additional Protocol