US concessions for India on nuclear fuel reprocessing

New Delhi: With India and the United States clinching an agreement that allows India to reprocess spent nuclear fuel sourced from American sources, yet another hurdle has been crossed towards the start of nuclear commerce between the two nations, a sector potentially worth billions of dollars.

Though contentious issues would now appear to have been resolved there are still some sticky points seeking resolution.

India is yet to pass a domestic nuclear-liability law that would allow American companies to bid for contracts and commence operations. It is also expected to provide a letter of assurance on non-proliferation, a licensing requirement that governs all commercial nuclear exports.

The Indo-US civil nuclear pact goes into effect unless the US Congress passes a resolution of disapproval. "We've debated and voted on this twice," said Rep. Gary L. Ackerman, chairman of the House Foreign Affairs subcommittee on the Middle East and South Asia, and also an old India Caucus hand in the Congress. He said Congress will not vote again.

But he expressed his disappointment that India had not adopted the nuclear liability bill, which would limit the liability of US nuclear companies. "We were hoping the Indians would be doing a lot better on that score," he said.

The Indian government hastily withdrew a bill it had sought to introduce in the lower house of the parliament as it emerged that the provisions of the bill were perceived by the members of the house as unduly favouring US companies, pegging their liability at ridiculously low levels.