VIENNA: Forty-five nations approved a US proposal on Saturday to lift a global ban on nuclear trade with India in a breakthrough towards sealing a controversial Indo-US atomic energy deal.
One hurdle remained before the deal can take force - ratification by the US Congress. It must act before adjourning in late September for elections or the deal could be left to an uncertain fate under a new US administration.
The deal raised international misgivings since India has shunned treaties meant to stop the spread, production and testing of nuclear weapons and mandate gradual disarmament.
Washington said the fuel and technology deal would forge a strategic partnership with the world's largest democracy, help India meet exploding energy demand in an environmentally sound way and open a nuclear market worth billions of dollars.
Nuclear Suppliers Group (NSG) adopted a one-off waiver allowing them to do business with India after several small NSG states agreed under heavy US pressure to weaker language than they had sought to ensure India does not test atom bombs again.
After two weeks of feverish meetings and long-distance consultations, resistance to the exemption finally crumbled when six holdout states reluctantly accepted an Indian declaration on Friday reinforcing a commitment to a voluntary test moratorium.
It also said India - whose regional rival Pakistan also has nuclear firepower outside the NPT - would not join any future nuclear arms race, would permit broader UN inspections and adhered to the NSG anti-proliferation export control regime.
"But for the first time in my experience of international diplomatic negotiations, a consensus decision was followed by complete silence in the room. No clapping, nothing," a European diplomat in the Vienna gathering said.
"It showed a lot of us felt pressured to some extent into a decision by the Americans and few were totally satisfied."
Diplomats said the final draft cited only the need for a special NSG meeting if India reneged on its commitments.
"The problem here is that the NSG works only on the basis of consensus. So, if India did another test, the follow-up meeting could be reduced to a talkshop by any one member like the Americans," said another diplomat. "It's not clear we could take action as a group."
NSG critics and disarmament campaigners fear Indian access to nuclear material markets will let it tap into more of its limited indigenous resources, such as uranium fuel, to boost its nuclear arsenal, and drive Pakistan into another arms race.
Intense US pressure for the waiver involved overnight phone calls to Presidents and Prime Ministers of holdout countries, several diplomats said.
Six NSG nations had been demanding a clause stipulating an automatic cessation of the waiver if India tested another bomb.
After India's statement, the holdout group splintered as Norway, the Netherlands and Switzerland indicated they could accept more limited language, diplomats said. Ireland, Austria and New Zealand fell into line on Saturday.
Nuclear Deal: A chronology
1968: India refuses to sign the Nuclear Non-proliferation Treaty (NPT) on the grounds that it is discriminatory.
May 18, 1974: India conducts its first nuclear test.
March 10, 1978: US President Jimmy Carter signs the Nuclear Non-Proliferation Act following which US ceases exporting nuclear assistance to India.
May 11-13, 1998: India conducts five underground nuclear tests.
July 18, 2005: US President George W Bush and Prime Minister Manmohan Singh first announce their intention to enter into a nuclear agreement in Washington.
March 1, 2006: Bush visits India for the first time.
March 3, 2006: Bush and Singh issue a joint statement on their growing strategic partnership, emphasising their agreement on civil nuclear cooperation.
July 26, 2006: The US House of Representatives passes the 'Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006,' which stipulates that Washington will co-operate with New Delhi on nuclear issues and exempt it from signing the NPT.
July 28, 2006: The Left parties demand threadbare discussion on the issue in Parliament.
November 16, 2006: The US Senate passes the 'United States-India Peaceful Atomic Energy Cooperation and US Additional Protocol Implementation Act' to 'exempt from certain requirements of the Atomic Energy Act of 1954 United States exports of nuclear materials, equipment, and technology to India'.
December 18, 2006: President Bush signs into law legislation on Indian atomic energy.
July 27, 2007: Negotiations on a bilateral agreement between the United States and India conclude.
Aug 3, 2007: The text of the 'Agreement for Cooperation between the Government of the United States of America and the Government of India concerning peaceful uses of nuclear energy' (123 Agreement) is released by both governments.
Aug 13, 2007: Prime Minister Manmohan Singh makes a suo motu statement on the deal in Parliament.
Aug 17, 2007: CPI-M General Secretary Prakash Karat says the 'honeymoon (with government) may be over but the marriage can go on'.
Sept 4, 2007: UPA-Left committee to discuss nuclear deal set up.
Feb 25, 2008: Left parties say the UPA would have to choose between the deal and its government's stability.
March 3, 2008: Left parties warn of 'serious consequences' if the nuclear deal is operationalised.
March 6, 2008: Left parties set a deadline asking the government to make it clear by March 15 whether it intended to proceed with the nuclear deal or drop it.
March 7, 2008: CPI writes to the Prime Minister, warns of withdrawal of support if government goes ahead with the deal.
March 14, 2008: CPI(M) says the Left parties will not be responsible if the government falls over the nuclear deal.
April 23, 2008: Government says it will seek the sense of the House on the 123 Agreement before it is taken up for ratification by the American Congress.
June 17, 2008: External Affairs Minister Pranab Mukherjee meets Prakash Karat, asks the Left to allow the government to go ahead with IAEA safeguards agreement.
June 30, 2008: Prime Minister says his government prepared to face Parliament before operationalising the deal.
July 8, 2008: Left parties withdraw support to government.
July 9, 2008: The draft India-specific safeguards accord with the IAEA circulated to IAEA's Board of Governors for approval.
July 10, 2008: Prime Minister calls for a vote of confidence in Parliament.
July 14, 2008: The IAEA says it will meet on August 1 to consider the India-specific safeguards agreement.
July 18, 2008: Foreign Secretary Shivshankar Menon briefs the IAEA Board of Governors and some NSG countries in Vienna on the safeguards agreement.
July 22, 2008: Government is willing to look at "possible amendments" to the Atomic Energy Act to ensure that the country's strategic autonomy will never be compromised, says Prime Minister Singh.
July 22, 2008: UPA government wins trust vote in the Lok Sabha.
July 24, 2008: India dismisses warning by Pakistan that the deal will accelerate an atomic arms race in the sub-continent.
July 24, 2008: India launches full blast lobbying among the 45-nation NSG for an exemption for nuclear commerce.
July 25, 2008: IAEA secretariat briefs member states on India-specific safeguards agreement.
Aug 1, 2008: IAEA Board of Governors adopts India-specific safeguards agreement unanimously.
Aug 21-22, 2008: The NSG meets to consider an India waiver ends inconclusively amid reservations by some countries.
Sep 4-6, 2008: The NSG meets for the second time on the issue after the US comes up with a revised draft and grants waiver to India after marathon parleys.
FACTBOX - Nuclear Suppliers Group
* A 45-nation cartel that controls trade in "dual-use" nuclear fuel, materials and technology to ensure they are applied only to civilian nuclear energy programmes, not diverted into clandestine nuclear weapons work.
* NSG was formed in reaction to India's shock 1974 nuclear test explosion, using reactor technology provided by Canada in the 1950s supposedly for peaceful energy development.
* Group policy has been to do business only with countries belonging to the nuclear Non-Proliferation Treaty - the only outsiders are India, Pakistan and Israel - and permitting "full-scope" inspections by the UN nuclear watchdog.
* The NSG website says: "(We seek) to contribute to the non-proliferation of nuclear weapons through the implementation of guidelines for nuclear exports and nuclear related exports. NSG guidelines are implemented by each participating government in accordance with its national laws and practices. Decisions on export applications are taken at the national level in accordance with national export licensing requirements."
* In 2002, NSG export controls were updated to help prevent the threat of nuclear terrorism as well.
A momentous decision: Manmohan Singh
NEW DELHI: Prime Minister Manmohan Singh said: "We welcome the decision of the Nuclear Suppliers Group to adjust its guidelines to enable full civil nuclear cooperation with India. This is a forward-looking and momentous decision. It marks the end of India’s decades long isolation from the nuclear mainstream and of the technology denial regime. It is a recognition of India’s impeccable non-proliferation credentials and its status as a state with advanced nuclear technology. It will give an impetus to India’s pursuit of environmentally sustainable economic growth.
"I thank the United States and other member countries of the Nuclear Suppliers Group for the role they have played in ensuring this outcome. The opening of full civil nuclear cooperation between India and the international community will be good for India and for the world. We look forward to establishing a mutually beneficial partnership with friendly countries in an area which is important for both global energy security as well as to meet the challenge of climate change."
Statement by Minister of External Affairs Shri Pranab Mukherjee
NEW DELHI: I have requested all of you to gather here so that I can personally inform you about the latest developments and the final outcome of the meeting of the Nuclear Suppliers Group (NSG) which concluded in Vienna a short while ago.
2. You have all been monitoring the developments in Vienna very closely. I am happy to inform you that the NSG have adopted a statement on civil nuclear cooperation which will enable India to resume full civil nuclear cooperation with the international community to meet its energy and developmental requirements. We welcome this decision and thank the Members of the NSG. You will appreciate that this also constitutes a major landmark in our quest for energy security.
3. The process, which has culminated in the NSG adopting a clean waiver, commenced 3 years ago with the initiative of Prime Minister Dr. Manmohan Singh and President George Bush through the 18th July 2005 Joint Statement. The IAEA adopted an India Specific Safeguards Agreement on August 1 2008. For this, our deepest appreciation and thanks are due to the Director General of the IAEA, Dr. Mohammed El Baradei and all the Members of the IAEA.
4. This decision will open a new chapter in India’s cooperation with other countries in peaceful uses of nuclear energy. We look forward to working with our international partners in realizing the full potential of mutually beneficial cooperation that this decision entails. It is a development of major significance to global energy security and would also be a contribution to meeting the challenges of climate change.
5. The journey has not only been long but required several steps to be taken sequentially including intense bilateral negotiations with the Members of the IAEA and NSG. I am happy to inform you that the final outcome fully meets our expectations and is consistent with Government policy and the national consensus on disarmament and non-proliferation. The NSG waiver is a unique development that has been achieved in accordance with commitments given to Parliament and the people of India, and is consistent with India’s national interest.
6. I would like to take the opportunity to place on record Government’s deep appreciation in particular for the untiring efforts of the United States, France, United Kingdom and Russia throughout this process, and also the support received from the present and previous Chairs of the NSG – Germany, South Africa and Brazil.
7. I would like to thank in particular President Bush and Secretary of State Rice for their personal commitment and contribution to this process.
8. My personal appreciation also for the untiring efforts of our negotiators and for all my colleagues in the Cabinet as well as in the Department of Atomic Energy and the Ministry of External Affairs who made this possible.
9. This landmark achievement is the direct outcome of the vision, personal commitment and guidance provided by Prime Minister Dr. Manmohan Singh.
Right to conduct tests preserved: Kakodkar
NEW DELHI: India's "legal" right to conduct nuclear tests has been fully preserved, and the country has not made any commitment in this regard to gain the waiver from the NSG to participate in nuclear commerce, Anil Kakodkar, chairman, Atomic Energy Commission, said today.
"There is no explicit mention of (nuclear) testing (in the NSG waiver)," he told reporters here making it clear that the exemption granted to India by the 45-nation cartel met all
requirements of the Department of Atomic Energy.
"We have made no legal commitment (on nuclear tests)," Kakodkar said underlining that India has already made a unilateral, voluntary moratorium on conducting atomic tests.
"Today is an important day as we have achieved a major breakthrough," he said and termed the waiver to India as "unique" as it will open the doors for the country to take part in international civil nuclear commerce after 34 years of isolation.
Asked about the amendments India had to accept to win over sceptical NSG members, he said "there is nothing significant. You can see it for yourself when the waiver document is made public by the NSG shortly. It is a straight-forward document."
"There is no specific targeting of India on anything," the country's top nuclear scientist said.
"I think it is clear that people have understood and recognised the importance of this exemption for India from India's track record, behaviour and energy needs," he said
when asked what he felt led to the waiver from the guidelines of the cartel that controls international nuclear trade.
Kakodkar said India's three-stage nuclear programme will continue.
Kakodkar said there was a good amount of urgency for enlarging the share of nuclear power and the NSG waiver will enable bringing "additionalities to the domestic nuclear programme."
He said India will talk to all countries engaged in nuclear trade and "certainly with the US. We have been talking about use of nuclear technology for national development and also meeting national requirements while we have the strategic programme which will go on. Our energy requirement is very large and the opening of civil nuclear commerce will enable is to meet both objectives."
On enrichment and reprocessing technologies, he said: "There are certain provisions in the NSG guidelines, and the same will be applicable to us."
US Ambassador David C Mulford said it is a triumphant day for India, and the waiver will strengthen global non-proliferation.
"We will now move forward to accomplish the final step with our Congress," Mulford said.
Historic day for India: Congress
NEW DELHI: Congress today hailed the NSG waiver for India as "historic", and said it was a significant victory not only for the UPA but for all Indians.
"It is a historic day for India. It is a red letter day," party spokesperson Manish Tiwari said moments after reports from Vienna spoke of India getting the waiver by consensus.
Great victory for India: Samajwadi Party
NEW DELHI: Samajwadi Party termed the waiver as a great victory for India, and said it would help the country in its development.
"India needs development and not nuclear bombs," SP general secretary Amar Singh said, criticising the opposition parties for "beating around the bush."
Quoting former President A P J Abdul Kalam, he said India required no more nuclear tests as the previous two tests have proved that the country is a nuclear-capable state.
Bush praises Singh for "strong leadership"
NEW DELHI: US President George W Bush today praised the "strong leadership" of Prime Minister Manmohan Singh for the success at the NSG, which granted a waiver for India to conduct nuclear commerce.
PMO sources said Bush spoke to Singh over telephone, and praised him for his "strong leadership" and the way he handled the issue with a lot of dignity.
Prime Minister Manmohan Singh thanked Bush for his role in taking forward the civil nuclear initiative, and the decision by the NSG to adjust its guidelines to enable full civil nuclear coperation between India and the international community.
The two leaders expressed their belief that mutually beneficial relations between India and the United States were in the interest of their people and were on a path of steady
consolidation and multifaceted expansion.
India falls into non-proliferation trap: BJP
NEW DELHI: BJP reacted sharply to the waiver claiming that the country has fallen into the nuclear non-proliferation trap.
"India has forever lost the right to conduct nuclear tests. The NSG waiver has come after so many deliberations... obviously there have been give aways by India," Former External Affairs Minister and party leader Yashwant Sinha said.
He said the NSG guidelines are as stiff as the Hyde Act. "US has gone for the deal because it sees India as a lucrative market for nuclear energy," he said.
Commenting on Congress' jubilation post the NSG waiver, Sinha said: "Congress has said that the nuclear apartheid has ended. They are trying to discard the legacy of Indira Gandhi because the apartheid had started after the 1974 Pokhran nuclear test."
He said the electricity that would be provided in India during the post-deal era would be costly.
Black Day for India: Left
NEW DELHI: The Left parties today made a scathing attack on the government for rejoicing the NSG waiver saying it was a "black day" as India's sovereignty had been compromised and its nuclear programme killed.
In a statement, CPI attacked Prime Minister Manmohan Singh for dubbing the NSG waiver as historic saying it was "a deliberate attempt to hide the adverse amendments incorporated in the final draft of the NSG waiver."
The NSG has accepted External Affairs Minister Pranab Mukherjee's statement "as a commitment by India to surrender its right for future R&D in nuclear technology, including the right to have strategic programmes.
"Besides, it seems that India has given up its claim on transferring dual use technology," CPI central secretariat said, adding US President George W Bush's letter to US Congress made it clear that Washington would never allow sensitive technology for reprocessing and enrichment to be transferred.
"If this has been accepted for NSG waiver, then it is not a historic day but a Black Day for India as far as our nuclear programme is concerned. This waiver will kill our
efforts to develop nuclear technology based on thorium," it said, demanding that the government should not proceed with operationalising the 123 agreement till all ramifications of the NSG waiver become clear.
RSP general secretary T J Chandrachoodan said there was no reason to rejoice as the ground work had been done by the US. "Our objection is to the Hyde Act, and we will continue to fight against the nuclear deal."
Forward Bloc leader G Devarajan said the leak of official US correspondence was aimed at getting the "sceptic member countries of NSG to fall in line. Left concerns have not been met. We still do not know what the NSG conditions are. It is an abject surrender of our sovereignty and foreign policy."
Positive trigger for markets
MUMBAI: Investor Rakesh Jhunjhunwala said: "It is a very proud moment for India. We can expect Indian companies to get more orders."
Nimesh Kampani, chairman, JM Group, said the markets will react positively to the development. "This is a great political victory. The waiver will go a long way for a long-term solution to ease the power situation."
Karvy Broking also said the markets will react positively to the development.
Waiver opens up Rs 1.2 trillion business: CII
NEW DELHI: Welcoming the NSG clearance, CII expressed confidence that the clearance will open up tremendous business opportunities for India besides meeting its energy needs to fuel its high rates of growth.
Chandrajit Banerjee, Director General, CII, said: "Today’s development is a major confidence-building move for the international community to engage with India, especially in high technology trade, and will provide opportunity for Indian manufacturers to supply spares and components to the global manufacturers of nuclear power plants besides providing business opportunities for Indian power plant construction companies."
He added: "The NSG clearance has now instilled confidence of business opportunities worth Rs 1,20,000 crore in the next 15 years, which would add about 18-20 nuclear reactors at the cost of Rs 5,000-6,000 crore each. The nuclear deal will also enable addition of new capacity and help fulfill the target of adding 63,000 Mw by 2030.
"The NSG clearance opens up avenues to secure a better and clean energy future and ends over 34 years of technology denial and fuel access restrictions for India. Today’s clearance will also help India secure uranium supplies for its existing capacities along with accessing reprocessing technology in order to reprocess the spent fuel and reduce the amount of radioactive waste."
An official statement issued by FICCI said: "This will pave the way for implementation of the US India 123 Nuclear Agreement once it is cleared by the US Congress. FICCI is confident that this deal will be beneficial to India in many ways. Foremost, it will enable India to get the nuclear fuel for all its nuclear reactors, which have been running to almost half the capacity.
"Not just the US but France, Russia & Australia will also become suppliers of nuclear fuel to India. Secondly, it will facilitate induction of latest technology in this sector. Thirdly, the country can expect massive investments in generation of nuclear power. This will go a long way in resolving India’s massive need for power for its growth and development. Finally, it will open the doors for foreign investments in the nuclear power generation, and usher India into the world’s top nuclear club." |
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