SSB Lecturette Series: INDO - US Nuclear deal - Part 2

In Part 1 of this series we saw the chronological order as to what led to the deal and how this whole story started. Lets continue to see the legacy being formed as this was termed as one of the most important deals of the UPA times.

Sept 13, 2008: The State Department issues a fact sheet on the nuclear deal saying the initiative will help meet India's growing energy requirements and strengthen the non- proliferation regime by welcoming New Delhi into globally accepted nonproliferation standards and practices.

Sept 18, 2008: The Senate Foreign Relations Committee kicks off a crucial hearing on the Indo-US nuclear deal.

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Sept 19, 2008: America's nuclear fuel supply assurances to India are a "political commitment" and the government cannot "legally compel" US firms to sell a "given product" to New Delhi, top officials tells Congressional panel.

Sept 21, 2008: US financial crisis diverts attention from N-deal as both the Bush Administration and the Congress are bogged down over efforts to rescue bankrupt American banks. financial crisis in the country.

Sept 26, 2008: PM Singh meets President Bush at the White House, but were not able to sign the nuclear deal as the Congress did not approve it.

Sept 27, 2008: House of Representatives approves the Indo-US nuclear deal. 298 members voted for the Bill while 117 voted against.

Oct 1, 2008: Senate approves the Indo-US civil nuclear deal with 86 votes for and 13 against.

Oct 4, 2008: Secretary of State Rice visits Delhi. India and the US unable to ink the nuclear agreement with New Delhi insisting that it would do so only after President Bush signs it into a law, an occasion when it expects certain misgivings to be cleared.

Oct 4, 2008: White House announces that President Bush will sign the legislation on the Indo-US nuclear deal into a law on October 8.

Oct 8, 2008: President Bush signs legislation to enact the landmark US-India civilian nuclear agreement.

Oct 10, 2008: The 123 Agreement between India and US is finally operationalized between the two countries after the deal is signed by External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice in Washington D C.

Other reactions over the issue

More than 150 non-proliferation activists and anti-nuclear organizations called for tightening the initial NSG agreement to prevent harming the current global non-proliferation regime. Among the steps called for were:

• ceasing cooperation if India conducts nuclear tests or withdraws from safeguards
• supplying only an amount of fuel which is commensurate with ordinary reactor operating requirements
• expressly prohibiting the transfer of enrichment, reprocessing, and heavy water production items to India
• opposing any special safeguards exemptions for India
• conditioning the waiver on India stopping fissile production and legally binding itself not to conduct nuclear tests
• not allowing India to reprocess nuclear fuel supplied

Indian parliament vote

·         On July 22, 2008 the UPA faced its first confidence vote in the Lok Sabha after the Communist Party of India (Marxist) led Left Front withdrew support over India approaching the IAEA for Indo-U.S. nuclear deal. The UPA won the confidence vote with 275 votes to the opposition's 256, (10 members abstained from the vote) to record a 19-vote victory.

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Current Scenario:

The Major concern over supplier liability law

Finally, the two countries have found a way out. Though the details are not available, reports suggest the supplier will now be able to buy insurance for liability up to Rs 1500 crore. By paying a nominal premium— estimated at Rs 1.5 crore per year — they would buy insurance policies from a pool comprising Indian insurance companies like General Insurance Company.

What does this mean?

It means, if there is a mishap tomorrow, the supplier is liable to pay a maximum of Rs 1500 crore. But this money will come from four public sector insurers and the government. In the end, the entire cost has been passed on to taxpayers in India.

Will this entice US companies?

Though a roadblock has been removed, there is another important hurdle.

The US suppliers are wary of an Indian clause that allows individuals to initiate legal action for damages caused by a mishap. They are now hoping that the Indian government will guarantee suppliers that they would not be sued by individuals or organizations if there is an accident.

In the event of a Fukushima-type disaster — which cost Japan almost $105 billion — in India, every penny of the liability would be borne by Indians, their government and public sector companies. And, if the compensation is inadequate, the victims may not even be allowed to take the supplier to court.

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About the Author: Ramandeep Singh gill from Delhi completed BSC in Hospitality and Hotel administration from IHM, PUSA. He loves to be surrounded by nature. Playing badminton is a stress buster for him. Great pet lover and interested in reading newspaper. Running and cycling always makes him feel energetic. Currently working as administration assistant cum IELTS Lecturer, he is a die heart defense aspirant.