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Monday, June 12, 2006

India Intelligence Report

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   Indo-US Talks Nuke Coop Talks

 
  • India, US to discuss bilateral nuclear agreement

  • India plans to generate 40,000 mw of power by 2030 using nuclear energy

  • Scoping for uranium deposits in several Indian states is to start

India and the US are to start conversations on developing a bilateral nuclear agreement that could be linked to the civilian nuclear deal that they signed July 2005 and is currently being debated in the US Congress. The US has sent experts from the State Department, Department of Energy, and Bureau of Security and Non-Proliferation are in New Delhi to discuss the deal that both countries “desire to establish a framework for broad-ranging peaceful nuclear cooperation.”

The US is expected to ask India to cap nuclear testing even if it has not ratified the Comprehensive Test Ban Treaty (CTBT); experts say that this is something that India will never do although it has announced a unilateral moratorium but would not like it to be formal. Experts also say that India does not really need technology but need the US to lift the ban on uranium imports to India so it can tide over shortages that is stopping invested reactors from producing power. Ultimately, India plans to generate 40,000 megawatts (MW) by 2030 using nuclear energy.

Simultaneously, the Department of Atomic Energy (DAE) is planning to set up Greenfield mining facilities in Nalgonda and Kadapah districts of Andhra Pradesh (AP) with an investment of Rs. 1600 crores (USD 347 million). The project requires clearances from the Ministries of Mining and Environment and if successful, India will not require any clearances, approvals, or treaties to use nuclear energy. Apart from AP, Meghalaya, Karnataka, Rajasthan, and Madhya Pradesh are said to have large deposits of uranium. Analysts say that local activism, presence of the potential mine in a protected area, etc. are stopping exploration.

India also has large deposits of thorium (the only country to have it) which can also be used as fuel. Unfortunately, the technology for commercial production will not be available for another 20 years.

Meanwhile, the US House of Representatives is planning to discuss the civilian nuclear deal later this month. The deal itself got a major endorsement from House International Relations Committee Chairman Henry Hyde albeit with “some concerns” but is apparently looking for “ways to addressing them.” Reports also say that the deal will only get a tentative endorsement with riders that may be inconvenient. Some lawmakers are also asking for a clear enumeration of safeguards that can then be attached to the legislation before it is endorsed. India is already negotiating these safeguards with the International Atomic Energy Agency (IAEA).

The influential Council for Foreign Relations had argued that the House needs to approve the deal quickly, even if it is tentative, so that bilateral relations do not suffer.


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