US-India Civil Nuclear Cooperation

Context: The US National Security Advisor has announced that the United States is finalising steps to remove long-standing regulatory barriers that have hindered collaboration between American Nuclear companies and India’s leading energy institutions. Beyond the nuclear deal, the iCET initiative holds immense promise for the future of US-India ties

Background- The Road to Civil Nuclear Cooperation:

1. India’s Nuclear Isolation:

• India’s Peaceful Nuclear Explosion (PNE) in 1974 and its voluntary exclusion from the Non-Proliferation Treaty (NPT) led to India’s isolation from trade in nuclear power plant materials. 

2. US-India Nuclear Deal: 

• The US-India Nuclear Deal or the US-India Civil Nuclear Agreement is a bilateral agreement signed between the US & India in 2008. 
• It is popularly known as the 123 Agreement.
• Benefits:
  • Ends India’s nuclear isolation and technology denial regimes against India. 
  • Enables India to have civil nuclear cooperation as an equal partner with the US and the rest of the world. 
  • Allows US companies to supply nuclear fuel and dual-use nuclear technology (including materials and equipment that could be used to enrich uranium or reprocess plutonium) for India’s civilian nuclear energy program.
  • Enables India to meet the twin challenges of energy security and environmental sustainability. 
• India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the United Nations’ nuclear watchdog group, access to its civilian nuclear program. 

3. NSG India-specific Agreement: 

• In 2008, the Nuclear Suppliers Group (NSG) agreed on an India-specific exemption to its nuclear export guidelines after complex negotiations.
• Following the NSG India-specific agreement, civil nuclear cooperation agreements have since been signed with the US, Russia, France, Australia and Kazakhstan, among other countries.
• Note: India is not a member of the NSG, the main reason being its refusal to sign the Nuclear Non Proliferation Treaty (NPT).

Associated Challenges:  

 The Civil Nuclear Cooperation between India and US has faced numerous challenges over the years: 

1. Nuclear Liability law of India: 

• India’s Nuclear Liability law (Civil Liability for Nuclear Damage Act, 2010) has been a barrier to the growth of the nuclear energy industry.
  • India’s strict liability law places the burden of compensation for nuclear accidents on the plant operator, which can deter private companies from investing in nuclear power. 
  • Also, according to the Act, the liability can be shifted from the operator to the vendor or supplier in case the accident is due to equipment or material. 
• This has created apprehension among potential foreign suppliers, delaying India’s ambitious nuclear energy plans. E.g., Nuclear liability is the major issue why the deal to install French European Pressurised Reactors at Jaitapur, Maharashtra, has not made progress.

2. Limitations of the US Atomic Energy Act of 1954:

• On the American side, a significant impediment is the ‘10CFR810’ authorisation (Part 810 of the US Atomic Energy Act of 1954), which gives US nuclear vendors the ability to export equipment to countries such as India under some strict safeguards. 
• However, it does not permit them to manufacture any nuclear equipment or perform any nuclear design work in India.

Recent Developments: 

• However, the National Security Advisor of the US has confirmed that the US is moving closer to formalising agreements that will facilitate the transfer of US nuclear technology to India, needed for India to expand its clean energy capacity.
  • This includes removing Indian government entities from the US entity list, these could include: Bhabha Atomic Research Centre (BARC); Indira Gandhi Atomic Research Centre (IGCAR) and Indian Rare Earths Limited (IREL).
  • The US Entity List is a list of foreign individuals, businesses, and organisations that are subject to export restrictions and licensing requirements for certain goods and technologies.
• Additionally, the US-India collaboration in critical technologies is growing. The US-India Initiative on Critical and Emerging Technologies (iCET) has focused on cutting-edge fields like artificial intelligence, quantum computing, space, and defence.

Initiative on Critical and Emerging Technologies (iCET): 

• US-India iCET is a framework agreed upon by India and the U.S. to strengthen their strategic partnership and drive technology and defence industrial cooperation. 
• Launch: 2023 
• Objective: Fosters cooperation on critical and emerging technologies in areas including artificial intelligence, quantum computing, semiconductors, space and wireless telecommunication. 
• Significance:
  • Facilitates dual-use technology transfer.
  • Streamline defense and tech cooperation via frameworks like INDUS-X.

Significance of advancement of Nuclear Cooperation & iCET for India:

• On the Nuclear front, iCET could pave the way for plans to jointly manufacture nuclear components for any new project in India by deploying American Atomic reactors. 
• Presently, India is over-reliant on Pressurised Heavy Water Reactors (PHWRs) for nuclear energy production, however, the Light Water Reactors (LWR) that are now the most dominant reactor type across the world.
• Furthering Civil Nuclear Cooperation between India and US will allow India to deploy American Light Water Atomic Reactors.