Join this Group for Updates and Discussions on this Blog (and a few others)!

Google Groups Join

Friday, October 26, 2007

More on the Indo-US Deal

I had earlier promised not to post further on this issue. But, it does not seem to leave us at all. The Americans want it, the PM is willing to sacrifice the government at one time and only his chair at other time for it (nothing is clear and neither seems to be happening, poor Deva Gowda). The Congress wants it, now, BJP too seems to want it (so if there is a chance of them coming back, it would come up again) and the US Ambassdor is talking to them too. Only the Communists are between the deal and the Nation, bless them for that. Here is one more news item that calculates the economics of the deal -

American Interest in Nuclear Deal by B.S.Raghavan in Business Line

...India’s plans of installing 40,000 MWs of nuclear power in the next 20-30 years, it is clear that the nuclear deal will mean a business of $80 billion for the lucky ones who win the contract. Allowing for the price escalation in later years, the figure may even exceed $100 billion, enough to inject adrenalin into the economy of the countries in which the supplier firms are located.

Remember, this does not take account of the requirements of components and spares, financing of service and maintenance and royalties on technologies — all of which may assure a steady flow of $10-20 billion more for the supplier firms during the life-time of the reactors. Certainly not a prospect to be sneezed at. As regards the intangible benefits to the US, an article “America’s Strategic Opportunity with India” by Mr R. Nicholas Burns, US Under-Secretary of State for Political Affairs and the point man for all that concerns the nuclear deal, published in the November-December issue of Foreign Affairs, gives an authentic exposition.

First and foremost, the deal is calculated to serve the national security interests of the US by bringing India into the international nuclear non-proliferation mainstream; second, it “will not assist the country’s nuclear weapons program in any way”; third, it gives the US control over the newly-to-be-built facility to reprocess spent fuel as it can operate only as per the specific arrangements and procedures laid down by the US; fourth, “should India decide to conduct a nuclear test in the future, then the US would have the right under US law to seek the return of all nuclear fuel and technology shipped by US firms”; and, finally, “an increasingly powerful India represents a singularly positive opportunity to advance (the US) global interests”.

Why would the US not pitch for it?

No comments:

Read by Label