India-US Energy & Nuclear Partnership

Topic: GS2 – International Relations

Context

• India and the US have reaffirmed their commitment to energy security, with Washington aiming to be a leading oil and gas supplier to India.

• This deal is seen as a strategic move to balance trade deficits between the two nations.

India-US Nuclear Deal

• The India-US Nuclear Deal also known as the US-India Civil Nuclear Agreement, was signed in 2008. This agreement stemmed from a joint statement made in 2005 by then Indian Prime Minister Manmohan Singh and US President George W. Bush.

  • The agreement aimed to facilitate civil nuclear cooperation between the two countries, marking a significant shift in US policy, which had previously restricted nuclear trade with India due to its non-signatory status to the Nuclear Non-Proliferation Treaty (NPT).

• The India-US nuclear deal, often referred to as the “123 Agreement,” allows US companies to supply nuclear fuel and technology for India’s civilian nuclear energy program.

• As a part of India-US Nuclear Deal, India committed to allowing inspections from the International Atomic Energy Agency (IAEA) for its civilian nuclear program.

• Benefits to India: India gained eligibility to buy US dual-use nuclear technology, including materials and equipment for uranium enrichment and plutonium reprocessing.

  • The deal was expected to enhance India’s energy security and help meet its growing energy demands through nuclear power.

What are Small Modular Reactors (SMRs)?

• According to the IAEA, small modular reactors (SMRs) are advanced nuclear reactors designed for enhanced safety and efficiency. Their power generation capacity typically ranges from less than 30 MWe to over 300 MWe.

• Features:

  • Small: Physically smaller than conventional nuclear power reactors, allowing for flexible deployment in various locations.

  • Modular: Designed for factory assembly, enabling transportation as a complete unit for easier installation.

  • Reactors: Utilise nuclear fission to generate heat for electricity production or direct applications.

Significance of the deal

• Acknowledges India’s strong non-proliferation record and its history of implementing voluntary safeguards on its nuclear program.

• Encourages India to accept international safeguards on previously uninspected facilities.

• Recognizes India’s commitment to following Nuclear Suppliers Group (NSG) export standards, despite not being a formal member.

  • India is a member of other multilateral weapon and technology export control regimes which include Missile Technology Control Regime, Australia Group, and Wassenaar Arrangement.

PYQ: With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (250 words/15m) (UPSC CSE (M) GS-3 2018)

Practice Question: Discuss the significance of the India-US Energy Security Partnership in the context of civil nuclear cooperation. Analyze the legislative and regulatory challenges that need to be addressed for the successful implementation of the 123 Civil Nuclear Agreement. (150 Words /10 marks)