Indo-US nuclear treaty: A good deal

Commentaries in the India press have both praised and panned the Manmohan Singh-George W Bush statement at the end of the Indian prime minister's visit to Washington, DC two days ago. These were to be expected. They reveal a clear adherence to the ideology of our political parties. Though the Left parties are critical as expected, it is unlikely that they will withdraw support to the government in power over this issue.

Setting polemics aside, the statement deserves to be welcomed for a number of reasons.

First, it opens many doors for generation of a significantly higher percentage of electricity generation with nuclear power reactors than the present very low percentage of about 2.5%. Second, the prospect of reducing our energy production deficit through building and commissioning more power reactors (based on low enrichment uranium and unit size of 1,000 Mwe or more) in a short period (now about 4 years compared to seven or eight years earlier) brightens up very considerably.

Third, the spiraling price of oil would upset the kwh cost of distributed electricity from non-nuclear plants and customers, both industrial and non-industrial, may not be assumed to be forever docile. Fourth, there is a finite probability of disruptions in assured fuel supply over the lifetime of coal or oil plants due to factors beyond the producer's control. Generally, such disruptions in nuclear facilities are overplayed while those in non-nuclear plants are underplayed.

Fifth, the pace of building nuclear power plants with foreign assistance has been poor due to a twisted interpretation of 'self reliance' and the price being paid for 'indigenisation'. This price increases by the day. An important fact or factor seems to be missed by critics who perceive this development in Indo-US relations as a Faustian bargain. Nuclear majors in the Nuclear Suppliers Group (NSG) like Germany, Canada, France and Russia have not been able to make their presence felt much in India mainly due to the position held by the US that nuclear cooperation with non-NPT countries should be actively discouraged.