Easing of Restrictions To Push Nuclear Deal With India

Syllabus: GS2/International Relations

Context

• Recently, the United States has announced the easing of restrictionson Indian nuclear entities, such as Bhabha Atomic Research Centre (BARC), Indira Gandhi Atomic Research Centre (IGCAR), and Indian Rare Earths Limited (IREL) from the US Entity list.
  • US Entity List is a tool used by the United States Department of Commerce to restrict certain foreign entities from accessing US-origin goods, services, and technology.

Historical Background

• The bilateral ‘Agreement for Co-operation between India & US concerning Peaceful Uses of Nuclear Energy’ has been done under Section 123 of US Atomic Energy Act 1954.
  • Hence it is also popularly known as the 123 Agreement.
• The Agreement aims to end technology denial regimes against India that have been in place for three decades and end India’s nuclear isolation.
• It opened the doors for India to have civil nuclear cooperation as an equal partner with the USA and the rest of the world.

Indo-US Nuclear Deal (2008)

• The Indo-US nuclear deal, signed in 2008, was a landmark agreement that allowed India access to nuclear technology and fuel from the international market despite not being a signatory to the Nuclear Non-Proliferation Treaty (NPT).
• It aimed to facilitate nuclear cooperation between the two countries, allowing India access to nuclear technology and fuel from the US and other Nuclear Suppliers Group (NSG) countries.
• The Agreement entails no obligations for India to sign the Comprehensive Nuclear-Test-Ban Treaty (CTBT) / Fissile Material Cut-off Treaty (FMCT).

Significance of Indo-US Civil Nuclear Collaboration

• Initiative on Critical and Emerging Technology (iCET): It aims to foster innovation and enable joint manufacturing of nuclear components.
  • It could facilitate deployment of American atomic reactors in India and enhance mutual cooperation.
• India’s Push for Small Modular Reactors (SMRs).
• Collaboration in Light Water Reactors (LWRs).

Implications of Easing of Restrictions by the US

• Strategic Importance: The removal of Indian entities from the U.S. ‘Restricted Lists’ is expected to provide fresh momentum to the nuclear deal, facilitating greater scientific and technological collaboration.
• Energy Security and Clean Energy Goals: IndiaUS, with its growing energy demands, is keen to diversify its energy sources.
  • Nuclear energy offers a reliable and low-carbon alternative to fossil fuels, aligning with India’s commitment to reducing greenhouse gas emissions and achieving its clean energy targets.
• Technological Advancements: Collaboration with the US can provide India access to advanced nuclear technologies, enhancing the efficiency and safety of its nuclear power plants.
  • It can also spur innovation and research in nuclear science, benefiting both nations.

Key Hurdles

• Nuclear Liability Laws: One of the most significant barriers to Indo-US nuclear collaboration has been India’s stringent nuclear liability laws. These laws hold the operator, rather than the supplier, liable for any nuclear accidents.
  • On the American Side: The ‘10CFR810’ authorization under the US Atomic Energy Act of 1954 has been a significant impediment. It allows US nuclear vendors to export equipment to countries like India under strict safeguards but does not permit them to manufacture nuclear equipment or perform design work in India.
  • On the Indian Side: The Civil Liability for Nuclear Damage Act, 2010, has been a major concern for foreign nuclear vendors. It channels operators’ liability to equipment suppliers, causing apprehension among foreign investors about potential future liabilities.
• Regulatory and Bureaucratic Challenges: Regulatory hurdles and bureaucratic red tape have also impeded progress.
  • The complex approval processes and stringent regulations in both countries have slowed down the implementation of nuclear projects.
  • Streamlining these processes and ensuring regulatory alignment is crucial for advancing collaboration.

Future Prospects

• By leveraging American nuclear technology, India aims to expand its clean energy infrastructure, contributing to global efforts to combat climate change. 
• Additionally, this partnership underscores the broader geopolitical significance of India-U.S. relations, particularly in the Indo-Pacific region.
• The easing of restrictions by the US marks a significant step forward in the Indo-US civil nuclear partnership. 

Source: IE