The former Indian foreign secretary, Vijay Gokhale, in his book, alleges that Left parties in India were heavily influenced by China in their decision to reject the Indo-US nuclear agreement. Despite gaining a special Nuclear Supplier Group (NSG) waiver due to the deal, India’s progression with Greenfield projects has been slow.
Understanding Greenfield Projects
In the world of construction and development, a Greenfield project refers to a plan carried out on unused land, free from any constraints set by previous work. Here, there is no need to remodel or demolish an existing structure. Engineers often cover these projects.
Nuclear Supplier Group: A Brief Overview
The Nuclear Supplier Group is an assembly of nuclear supplier nations aiming to prevent the proliferation of nuclear weapons through the application of two sets of Guidelines for nuclear exports and nuclear-related exports. The group, established following India’s detonation of a nuclear device in 1974, comprises 48 participating governments. The NSG carries out decisions based on consensual agreement, implementing guidelines in line with individual member states’ national laws and practices.
Framing the Background
India was once predominantly considered by the U.S. as a leader of the non-aligned camp (Non- Aligned Movement), leaning towards the USSR and later Russia. Historically, India procured most of its weapons from Russia under a pseudo-socialist economic regime. In contrast, the U.S. favored Pakistan during and after the Cold War. However, the rise of China prompted the George W. Bush administration to attempt to sway India into joining the West’s camp to help contain China. Consequently, the US offered India civil nuclear technology and access to uranium, which it needed for its nuclear power reactors. The result was the signing of the Indo-US nuclear cooperation agreement in 2008, bolstering the relationship between the two nations.
Examining the Indo-US Nuclear Deal and NSG Waiver
The special waiver the NSG granted to India enabled it to enter cooperation agreements with multiple countries. This deal permitted India to separate its civilian and military programs, placing its civilian nuclear facilities under International Atomic Energy Agency (IAEA) safeguards. Charged with the responsibility of refraining from the transfer of enrichment and reprocessing technologies to states without them, India agreed to support international efforts to limit their spread.
Benefits of the Deal: Broadening Horizons
Following the waiver, India entered into nuclear cooperation agreements for peaceful means with multiple countries. These agreements led to specific contracts for uranium import from France, Kazakhstan, Australia, Canada, and Russia. The deal also acknowledged India as a responsible nuclear weapon state with strong non-proliferation standards, strengthening US-India relations. Moreover, it spurred technological development, as India developed Pressurised Heavy Water Reactors (PHWRs), crucial to the nation’s nuclear power generation.
Understanding the Challenges
However, there have been certain issues. Liability has been a primary concern, with Westinghouse not willing to construct the nuclear power project in India and only supplying reactors and components. This situation means a reactor construction would take nearly another decade in India, making the liability U.S. companies would bear in case of a Fukushima-type nuclear accident highly uncertain. Furthermore, India’s requirements from the nuclear deal have drastically evolved, and cost remains a major factor that India is prepared to pay for nuclear energy through foreign collaborations.
The Current Status of Projects
Despite discussions about the sale of nuclear reactors to India post the 2008 pact, only two subsequent agreements were signed in 2016 and 2019. A proposal to build six reactors in collaboration with Westinghouse Electric Company (WEC) has been announced, but work is yet to commence.
Looking Forward
Civilian nuclear cooperation hasn’t taken off despite the historic 2008 nuclear deal. Given the dynamics of international politics, where permanent interests outweigh permanent friends or enemies, India should continue its foreign policy of strategic hedging. The relationship between India and the US remains critical for framing the world order in the 21st century. To realize the full potential of this relationship, both governments must strive to finalize the unfinished agreements, setting the course for a Comprehensive Strategic Global Partnership.
