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DAE Rejects Australian Uranium Supply Proposals for India

The Department of Atomic Energy (DAE) in India recently declined the proposals put forth by two Australian firms for initiating uranium ore supply to India, pointing out the proposals’ lack of viability.

History Of India-Australia Relations

From 2012, the ties between India and Australia have been strengthening. This was the year when the government of Australia chose to sell uranium to India, even though India had not signed the Nuclear Non-Proliferation Treaty. In 2014, their decision was officiated with a bilateral agreement named ‘Cooperation in the Peaceful Uses of Nuclear Energy’. The plan was to utilize uranium sourced from Australia to fulfil the fuel needs of Indian nuclear reactors under International Atomic Energy Agency (IAEA) safeguards.

However, progress on uranium supply has been slow, despite continual efforts from both sides. In 2017, the first uranium shipment from Australia reached India, but it was dismissed as a mere ‘sample of uranium’ moved ‘purely for testing purposes’.

India’s Civil Nuclear Capacity

India operates 22 reactors that have a total capacity of 6,780 megawatts. Eight among these reactors are driven by indigenous uranium, while the remaining 14 are under IAEA safeguards and eligible to use imported uranium. Following the 2005 nuclear deal with the USA, India committed to place 14 reactors under IAEA safeguards on a phase-by-phase basis, as declared in India’s separation plan announced in 2006. At present, India procures uranium fuel from several countries including, Russia, Kazakhstan, Uzbekistan, France and Canada. The leading global producer of uranium is Kazakhstan. A consistent supply of uranium would potentially enhance the efficiency of fuel cycle facilities and Indian nuclear power plants.

Non-Proliferation Treaty Insight

The Non-Proliferation Treaty (NPT) is an international treaty designed to prevent the distribution of nuclear weapons and related technology, promote peaceable uses of nuclear energy, and further progress towards disarmament. Signed in 1968 and enforced in 1970, the treaty currently boasts 190 member states. Its rules require countries to quit any current or future plans of creating nuclear weapons, in exchange for access to peaceful nuclear energy uses.

India’s Perspective on NPT

India is among the five countries that have not signed the NPT, along with Pakistan, Israel, North Korea, and South Sudan. India has consistently objected to the treaty, viewing it as biased. India has rejected international non-proliferation treaties, arguing they apply only to non-nuclear powers and legitimate the monopoly of the five nuclear weapon nations. India contends that nuclear disarmament could be achieved through a gradual, step-by-step procedure supported by universal dedication and an agreed multinational framework, following substantive discussions among all nuclear weapon-possessing states to build trust and confidence.

Way Forward For India-Australia Relations

While there have been ups and downs in the bilateral relations between India and Australia, Australia lifting the ban on uranium sales to India removed a major diplomatic obstacle and potentially opened up a new market for Australian suppliers. In June 2020, both nations decided to raise their relations to the level of ‘Comprehensive Strategic Partnership’. Given these advancements, both nations can collaborate to clear the roadblocks impeding the supply of Uranium from Australia to India.

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