Rao downplays nuke bill delay; US firms dismayed

The uncertainty over the fate of the Civil Nuclear Liability Bill in Parliament has caused a considerable amount of concern to members of the United States-India Business Council, as some of them had lobbied feverishly in the US Congress to get the agreement approved.

USIBC President Ron Somers voiced his concerns at an interaction with Foreign Secretary Nirupama Rao, during her six-day visit to the United States, pointing out to her that a continuing delay in implementing the deal could result in US companies losing out to their Russian counterparts.

He voiced US nuclear companies' concerns about India's decision to purchase at least a dozen Russian nuclear reactors and sophisticated weaponry from Moscow during the recent visit of Prime Minister Vladimir Putin to New Delhi

However, Rao downplayed concerns over the Bill being deferred in the Parliament, claiming that the implementation of the nuclear deal was a mere formality and it was 'proceeding smoothly and satisfactorily'.

During an interaction at the Woodrow Wilson Centre, she said, "As far as the introduction of the Civil Nuclear Liability Bill in Parliament is concerned, it is ready for introduction and in all likelihood it will be introduced after the recess."

When a questioner argued that the domestic compulsions both in the US – with the raging health care debate -- and India could delay and even torpedo the implementation of the deal, Rao disagreed, saying, "I believe that both sides have engaged in very, very useful discussions and it's been a problem-solving approach."

"And, in a sense, we see this as a win-win for both sides," she said, and added, "And, I think we have every reason to be optimistic about the outcomes that both sides feel should be put in place in terms of more generation of nuclear energy, and US involvement in that."

Rao, attempting to allay concerns, pointed out, "In fact, agreements have already been signed with GE Hitachi and Westinghouse earlier this month. So, going by that experience, I think there is reason to be hopeful and to be optimistic and we look forward very much to President Barack Obama's visit to India later this year. That's going to be a major milestone."

Both administration and diplomatic sources have told rediff.com that Washington and New Delhi are endeavoring to complete all the technical details, and the government is trying to get the nuclear liability bill approved in Parliament, so that the signing of the bill for implementation could be the high point of Obama's visit.

In her speech at the Wilson Center, Rao said, "An important dimension (of the deal) is the substantive role that the United States nuclear power companies can play in the addition of more nuclear energy to India's nuclear mix."

"We are in the process of operationalising the agreement through close coordination between our two governments," she reiterated.

Rao also recalled that during the joint statement issued during Prime Minister Manmohan Singh's state visit to the US last November, "The two leaders reiterated their intention to realise the full potential of the nuclear deal and agreed to expedite US firms' participation in the implementation of this agreement."

Earlier, in her speech to the High Technology Cooperation Group, Rao had said, "Implementation of the India-US Civil Nuclear Agreement and the India-US Bilateral Investment Treaty, which is presently under discussion, as also our defence procurement programme, are opportunities for a win-win situation to both the countries."

She predicted, "Once the 123 Agreement is implemented, a structured bilateral interaction with the industry on both sides could take forward the process."

Rao said, "In the meanwhile, there is already a steady and direct interaction between US nuclear industry and the Nuclear Power Corporation of India Limited. Two MOUs have already been signed with GE Hitachi and Westinghouse."

But US companies and manufacturers, which were eyeing the bulk of the civilian nuclear energy market in India, and had spent much time and money in pushing for India's exemption to receive nuclear technology and fuel even though India was not a signatory to the Nuclear Nonproliferation Treaty, were anything but reassured by Rao's words.

Somers described his 'dismay' when he read reports about Putin's statement -- that providing India with Russian high technology is a priority and "India agreed to buy a dozen more nuclear power plants from Russia and to buy more weapons."

"Madam Secretary," he told Rao, "US companies make better technology in all of these areas -- biotechnology, nanotechnology, defense and security technology, civil aviation and aerospace and civil nuclear plants."

He explained how the USIBC and US industry had worked assiduously "to bring about changes in the US Congress to modify the US Atomic Energy Act, to amend the rules of the International Atomic Energy Agency and to include India as a member of the Nuclear Suppliers Group. We are proud of these accomplishments."

Somers asserted that "US industry seeks no special favours, only a level playing field where US high technology and innovation can be shared with India."