In a significant departure from all 123 agreements that the US has signed with other countries, India has extracted an explicit commitment in its bilateral nuclear cooperation agreement, which was finalised in Washington yesterday, that the US will “not hinder” the growth of India’s strategic weapons programme.

India had pushed for including this commitment specifically to address concerns emerging from the Hyde Act that contains references in its non-binding portions allowing the US government to make efforts to “freeze” and “roll back” India’s weapons programme.

These references had drawn criticism from the Left, BJP and former nuclear scientists even though Prime Minister Manmohan Singh had made it clear in his August 17 speech last year that India’s weapons programme will remain untouched.

This along with the US extending India the right to reprocess US-origin spent fuel as well as honouring its fuel supplies assurance have strengthened the PM’s hands. He can claim that the 123 Agreement was finalised in “record time” with the US addressing all the points he had made in the Rajya Sabha N-deal debate.

By extending consent to reprocess spent fuel, the agreement will remove restrictions on all aspects of the nuclear fuel cycle just as the PM had assured. Also, it protects India’s three-stage programme where the second stage — fast breeder reactors — has to function on reprocessed spent fuel. The agreement allows India up to 20 per cent enrichment of fuel.

Besides, the agreement deals in detail with the “termination clause” which comes into play in case India were to test a nuclear device. US law requires it to immediately terminate all civilian cooperation in such a scenario and then exercise the “right to return” all US-origin material, fuel and equipment that it may have supplied under the agreement.

While the US legal provisions will get activated almost immediately, the exercise of the right to return will not be immediate. A bilateral working group will first be formed to look into circumstances leading to India’s decision.

If this group fails to address the situation, then a range of other technical consultations will begin. One such consultative mechanism will determine the compensation Washington will have to give in case it decides to move out its material.

Another area where India is satisfied is that inspections will only be carried out by IAEA inspectors under the agency’s safeguards arrangement which India will negotiate separately. This was a specific concern flagged by the Left and former scientists.

WHAT CLINCHED IT

US for in-principle consent

Separate agreement when India needs to reprocess US-origin spent fuel

Dedicated safeguarded facility for US-origin spent fuel

Fuel Supplies: US agrees to honour its commitment on lifetime fuel supply for civil Indian reactors

WHAT NEXT

Cabinet to clear the agreement, India to talk with IAEA for safeguards agreement

US to approach Nuclear Suppliers Group seeking exemption for India on same grounds given by Washington

With NSG waiver in hand, agreement will be sent to US Congress; vote after 90 legislative days