Indo-US Nuclear 123 Agreement

After much procrastination, I decided to read complete details of all laws governing the India –US Nuclear Energy Cooperation. I was confused on what my personal stand is. For which I decided to do my independent study.

Please find copy of the Agreement For Co-operation between the Government of India and United States of America concerning Peaceful Uses of Nuclear energy.

After going through this document, as a common citizen with my present knowledge, understanding and maturity following are some of my views and questions. (This might change over period of time with more information)

We as a country have to consensus on 3 objectives before we get into this agreement

1. Strategic Alliance-The clear objective that has to be discussed with nation at large is, Is India a threat to US as much as what US Can be threat to India? If US is considered as threat, by consensus, than we must not choose to go ahead with deal for sharing information to such depths.If consensus considers relationship as Ally, then information sharing is good.
   
2. Energy Vision- India has a major energy crisis on cards due to the ever growing Industrialization, exponential demand and regular power cuts in Rural India. Hence, a clear energy gap. As of present, Nuclear Energy is one of the best options to meet this demand or address crisis in the fastest and largest way. As large scale Energy is created in fastest time. But what are the threats we are presently having in India. We have over hundreds of Terrorist Organizations already against India, from Kashmir, Assam, Nagaland, Manipur, to Naxalites. With establishing of several nuclear reactors across India, do we invest more in their security to avert possible long term damage to our fragile environment. Why have developed economies in Europe, moving away from Nuclear Energy to alternative energy such Wind, Tidal etc. Is there some negative experience they have about Nuclear Energy? Since its just one planet we will be using Nuclear Energy, and then dumping nuclear waste on this same sensitive planet or country. Isn't this man-made technology creating more damage compared to existing methods of non polluted power generation? If the present Nuclear Energy vision of present governments backfires in future causing irreparable damage to society and environment, then will these 2 governments be held responsible and subject to prosecution. Does Nuclear Energy Vision contradict global movements on Climate Change?
   
3. Competitive Scenario- Is the domestic Indian Nuclear companies ready for competition with US or will they be compelled to collaborate rather than compete. What is the FDI Policy for this sector from commissioning of Nuclear Plants to importers / exporters of machinery, technology and raw materials
   

   
   

The Agreement has its positives and negatives for both countries. Positives for India refers to assistance of technology, management expertise in enrichment, research tie-ups, lifecycle support, IAEA as referee, easier exchange of experts, transparency, greater trust between 2 countries making stronger alliance and policies enabling faster execution of projects to meet the energy demand .

Coming to the Grey areas in the Articles of the Agreement:

Article 3-

• Will the information under this article between 2 countries be accessible to private Nuclear Companies?
  
• The article refers to control of information by both countries which it considers as Restricted Data. What kind of data will be considered as Restricted Data? Can this Restricted Data be very relative in both countries?
  
• Article refers to sharing of Research Information- But what about possible IP discovered in India or US, isn't that information to be kept confidential?
  

Article 4-Nuclear Trade-

• Nuclear Trade as such is more viable and profitable to American Companies than Indian. The clause of addressing applications of nuclear companies within 2 month period ensures faster access to Indian energy market. Will the same period of 2 months be given to other nations such as France and Russia?
  

Article 5-Transfer-

• Are we ready for exchange of low enrichment uranium & technology for energy needs in return to easier access to market and critical security information?
  
• If disruption of fuel occurs due to unavoidable circumstances, then both countries will jointly convene a group of friendly supplies from Russia, France and UK. Why jointly and no independence for India to establish supply channels from these nations.
  

Article 7-Storage & Retransfer- Sharing of list of facilities-

• If Information pertaining to Nuclear Program, locations and research activities are not available to Indian Citizens under Right to Information Act 2005, then how justifiable is it, to make it available to certain departments of another country, whose citizens are not under the jurisdiction or control Indian Administration?
  
• Which offices private and public in both countries will hold this information?
  
• Agreement does not refer to trial or compensation relief for any leakage of confidential information.
  
• With US having strategic alliance with Pakistan, is there possible sharing of sensitive information to our historically violent brother.
  
• Will US be compelled by Pakistan to offer complimentary arms support and technology, creating another arms race in Indian Sub-Continent?
  

Article 10-Access to IAEA on all Inventories-

• US have only one visible balancing power that is Russia. Where as India has Pakistan and China. Will such information made to IAEA be considered sensitive to India though it might refer to Peaceful Uses of Nuclear Energy?
  

Article 11-Environmental Protection

• There is No mention of compensation to society in case of any damage to environment or citizens. Our learning from Bhopal Gas Tragedy has to be understood by Policy makers. Where senior management of Union Carbide / Dow Chemicals are still liable for punishment, will senior management of companies and governments be held responsible for any possible further such cases.
  
• If there is 2 month period for addressing grievances of companies doing business, why no time period fixed for compensation or punishment?
  

Article 14- Termination & Cessation of Agreement

• Agreement applies for a period of 40 years, with one year advance notice for termination and possible withdrawal of technology, raw materials and end products.
  
• If India develops its Research Strength in next 20-40 years, is it in strategic benefit to choose to share research information. Similarly is it benefit to US to do the same?
  

Some other questions un-answered are:

• What percentage of energy demand in next 25 years is going to be met with Nuclear Energy? What is number of Nuclear Reactors planned by Indian Government to be established in next 25 years. A control over number of reactors is needed to maintain the balance of dependency on nuclear energy due to its high environment problems. Free market attitude will create over production pushing our natural resources to its limits.
  
• Present Policy doesn't cover measures to tackle Kickbacks. As India has been very suspetible and many times compromised on several areas such as licenses, health and safety etc. Policy must ensure transparency in dealings and faster trial processes with both countries such as extradition treaty, freezing bank accounts of suspects, etc.
  
• Since the pool of Nuclear Scientists in India is limited, same pool of scientists might be playing dual role or later be involved in nuclear defense related work. Information regarding such profiles is usually considered confidential for security purposes. Present Agreement enables disclosure of such profiles in form of meetings, exchange visits etc. to private and public offices. Where there is possibility of leakage of information again.
  
• Agreement fails to address details of Nuclear Waste Management and Rehabilitation measures. If there join commissions to establish implementation of this agreement a necessary body has to be developed whose officers will be held accountable for nuclear waste disposal, management and rehabilitation.
  

On December 18, 2006, President Bush signed into law The Henry J. Hyde U.S.-India Peaceful Atomic Energy Cooperation Act of 2006. There is a strong inter-relationship between this Hyde Act and 123 Agreement. For which I will start my independent study on this as well. We have to study whether Hyde Act has greater powers over the 123 Agreement.

My personal view is that the policy needs more discussion and consensus. Also we need an independent study has to be done as to why the Republicans are so aggressively pushing India to sign the deal. Is it pressure of American Nuclear Industry for faster access to Indian Markets?

A good analogy I see is that of best practices from Retail Giant Wal-Mart. To get better supplies, Wal-Mart procures its resources from multi-vendors across the globe. With its sheer volume demand it commands and dictates price and disclaimers in agreement to suit its cost structure when it comes to procurement.

India is the largest market of Energy after China. This demand allows India to be a position of authority to build its Alliance with various countries to get the best package (raw materials+ technology+ expertise+ research+ management skills+ funds….). India must exercise this opportunity to get the best deal from best at the best price.

I think its time for India to learn about its Nuclear Alliance from Wal-Mart.

Jai Hind,

Navendu Shirali

More questions on this Agreement to read are by:

Brahma Chellaney, Professor of Strategic Studies at the Centre for Policy Research, New Delhi, is the author, among others, of “Nuclear Proliferation: The U.S.-India Conflict."