Economics of Indo-US nuclear deal

— Shiva SharmaIn 1966, eminent scientist CV Raman wrote, “Though much progress has been achieved, India does not yet occupy in the world of science the position to which her traditions, her numbers and the intellectual quality of her people entitle her. There are several handicaps yet to be overcome.”During the last four decades effort has been made for scientific research and progress in the country. Research and developmental work on the application of atomic energy has also been done. The country also extracts minerals and thorium from the beach sands of Kerala and Orissa. The Uranium Corporation of India recovered concentrates uranium at Jaduguda in Bihar. A nuclear fuel complex at Hyderabad fabricates fuel elements for nuclear power reactors. Manufacture of electronic instruments and equipments for nuclear uses, including commercial TV sets and computers is undertaken at Hyderabad.In 1961 the Nuclear Power-station at Tarapur of Maharashtra was set up with the aid of US. After that, with the cooperation of Canada two Nuclear Reactors were set up at Rajasthan and Tamil Nadu. But China’s nuclear explosion of 1964 created a panicky situation in the subcontinent. In 1968 the Nuclear Non-Proliferation Treaty was signed. It came into force in 1970. By this the nuclear powers had agreed not to transfer nuclear weapons or control over them to any recipient whosoever or to provide assistance in producing weapons to a non-nuclear weapon country. India, along with Israel, China, South Africa etc. had not signed the treaty on various grounds.In 1974, India examined a peaceful explosion in Pokhran of Rajasthan. This was done with the aid and advice of Indira Gandhi. For this explosion all sorts of cooperation had been stopped by the countries concerned. But the Indian scientists were not disheartened.In 1998, India again conducted five serial explosions in Pokhran. In 2004, Indian National Congress declared in the election manifesto that the party was determined to protect the nuclear programme. It is in this perspective, 123 Indo-US Nuclear deal is to be examined. Section 123 of the US Atomic Energy Act, 1954, titled ‘cooperation with other nations’ provides an agreement for cooperation as a prerequisite for nuclear deals between the US and any other nation and such an agreement is called 123 agreement.In July 2005, Dr Manmohan Singh, Prime Minister of India and George W Bush agreed to this deal. In March 2006, India and the US agreed on India’s plan to separate its civilian and military nuclear reactors. In December, 2006, the US Congress approved the deal. In August, 2007 the text of the deal is unveiled. The Leftists then requested the government to suspend it as it compromised India’s sovereignty and imposed US influence.But after the assurance of support of 39 MPs of Samajwadi Party, Prime Minister Dr Singh announced in Japan that India would soon move to the International Atomic Energy Agency for completion of the next stage of the deal. The Leftists had withdrawn support to the UPA government. Not only that they also decided to vote against the government. But the opposition platform is mainly under the occupation of the BJP which is not secular party. It is, on this plea that the advance of the BJP be stopped, the Left had once decided to support the UPA government.The Leftists’ malice against the US is particularly historical. Till two decades back the world was divided into two power blocks– one led by the capitalist America and the other led by the socialistic Soviet Union. India did not join any one. Nehru said, ‘we donot like to be a pawn in the International Chessboard.’ But in the last decade of the 20th century these blocks collapsed. Soviet Union had been broken into pieces. Now Russia is also under capitalist economy. Communist China has also embraced capitalism in the economic sphere. Now there are about ten thousand US business establishments in China. Now almost all such countries, except North Korea and Cuba, have embraced capitalist economy.Indo-US nuclear deal is a timely breakthrough of the UPA government. At present we get power from two sources– thermal projects and Hydroelectric projects. Still our power generation is insufficient. The nuclear deal with the US could spur India’s economic growth as the country’s objective is to increase the production of nuclear power generation from its present capacity of 3,700 MW to 20000 MW in the next decade. Federation of Indian Chambers of Commerce and Industry appreciates this deal and comments. If India wants to be the second or third largest economy of the world by 2050, it has no other option but to achieve energy independence. We cannot afford to take the risk of energy shortage. If this deal ensures an assured supply of uranium, the country will have an optimal mix of energy– thermal, hydro, nuclear and non-conventional. We need to continue our nuclear programme with uranium till we get a breakthrough in thorium technology after 12 years or so. Once we hit the thorium cycle, we will be the king. As some reports suggest, about 34 per cent of the world’s thorium is available only in the sands of Kerala.Once India’s nuclear isolation ends, many countries of the world will come forward to cooperate with the deal. It is not simply Indo-US deal, it is a deal between India and the world. It will help India meet its rising energy demands; it also guarantees Indian fuel supplies. Above all, the nuclear deal could usher in a new era of nuclear power in India freeing the country from heavy dependence on fossil fuels.But all these depend on the UPA’s ability to manage the requisite number in the trust vote. If the deal is executed, we think, unlike what the leftists think, the US is not the main beneficiary. It is a marvellous achievement for India.(The writer is former principal, Madhabdev College, Lakhimpur). source: assam tribune editorial