Tuesday, November 04, 2008

US India Nuclear Deal - what's in it for anybody?

India's Energy needs
India with its double digit growth pace needs more and more renewable energy alternatives to meed its growth demands. However, India does not have natual energy mediums like fossil fuels so it has to rely on imports and natural eneregy to do so.
The current energy sources allocations are
Thermal Power 66%
Hydel Power 26%
Solar & Wind Power 5%
Nuclear Power 3%


After the above has been stated, lets discuss NTP.
NTP stands for Nuclear Non Poliferation Treaty. The basic spirit of NTP is that all nuclear weapon contries keep the nuclear weapons to themselves and provide civiliean nuclear technology to other countries in exchange of their refusal to produce nuclear weapons. 5 countires have nuclear weapons: UK,US, France, Russia and China. NTP proposes non poliferation, disarmament and using nuclear tech for peaceful purposes.

Ideally, India along with Israel, Pakistan and North Korea have not signed the treaty. NK had signed the treaty, violated it and then withdrew. Isreal is belived to have nuclear weapons but has a policy of opacity. India and Pakistan both have nuclear bombs.

Why wouldn't these countries join?: the 5 counties did what ever they wanted and then developed the NTP to prevent others from doing the same. India does not want to sign the treay as China has nuclear weapons and India and China have border disputes.
A few countries like N Korea as well as Libya have found to violate trety inspite of having signed it.

US Nuclear Deal (123 aGREEMENT)
About the deal
According to this deal, US will supply technology and material to India to develop nuclear energy for civilian purposes and in return India will allow the UN's nuclear watchdog group access for inspection to its 14 out of the current 22 and all future civilian nuclear power stations. However,India has the right to decide which reactors are civilian and which are military.

What's in it for US and other countries
1) Lead to better relations between India and USA and establish close relation ship for future.
1) US,France and Russian companies will be allowed to build nuclear reactors in India. Canada can supply Uranium.
2) US is looking for ways to offset China's groing dominance in Asia and India with its nuclear energy will be ableto support the groing economy and therefore chanllenge China's growth.

What's in it for India
1) Alternative sources of nuclear energy to support its growth
2) It demonstrates that US is ready to build a long and enduring relationship with India.

Pros from the world's point of view
1) Since the NTP has failed to force India to allow inspection of its nuclear facilities, atleast this open will allow some of it to be reviewed for the international commitee, The piece cites proponents of the deal who argue that some international oversight over India's nuclear program is better than none.
2) Benied denied access to nuclear fuel was working against India developing as an emerging power. So this agreement is taken very favourably by India and seens more as a symbolism of the relationship between India and America.
3) Recognizes India's history of volutanry safeguards and strict control over its nuclear technology.

Cons from the world's point of view
1) Lead to arms race in India as Pakistan has already opened a new reactor in 1998 to develop weapons grade plutonium.
2) By giving access to India inspite of it not signing the NTP, US itself has undermined the treaty itself so when they present the case to other countires to sign, it will have no effect. Esp with North Korea.
3) Pakistan claims that it has the same behaviour as India and it too should deserve the same perks. But Pakistan had a history of poliferation esp with a general selling some nuclear technology to Iran.

How did the pact get signed when there are so many political consequences
Each country is going to reap huge profits by sellign nuclear material/technology to India. So as the Marx would say "Follow the Money"

1 comment:

Manu said...

nice, informative article yaar :)