123 of nuclear deal

The reason why the 123 Agreement is important is more than the technical reasons; it is used or abused for political reasons. Whether one knows about it or not, but could not stop from making a comment on it. In 1974 after the Pokhran tests, all foreign assistances stopped immediately, that crippled our indigenous nuclear program. Since then, India pursued its independent nuclear program and refused to sign the Nuclear Non-Proliferation Treaty (NPT).

The US administration had to change its own laws, which barred it from any nuclear cooperation with a country like India, a non-NPT member with an atomic weapons program. The waiver-law to begin nuclear collaboration with India was the Hyde Act. Having got the waiver, Indian & American officials had to negotiate a bilateral agreement; known as the 123 Agreement. It is the section 123 of US Atomic Energy Act 1954 that deals with nuclear co-operation of US with any foreign country.

Positive Points:

This deal would restore India's right to access its nuclear requirements in the international community.

It provides one time exception to India for keeping the nuclear weapons without signing the NPT.

It overturns a 3 decade-old US ban on supplying India with nuclear fuel and technology (in reciprocation,India must separate its civilian & military nuclear facilities, and submit civilian facilities to inspections by the International Atomic Energy Agency (IAEA)).

It strengthens international security by tightening US ties to ally India. It also ensures some of its nuclear industry will undergo international inspection.

India, which relies on imported oil for 70% of its energy needs, needs nuclear power that will help feed its expanding economy.

France, which signed a similar deal with India in February 2006, says the move will help fight climate change and aid non-proliferation efforts.

Negative Points:

Indian nuclear power plants are based on different technology than the technology United States is offering us ( heavy water)

The approval from IAEA and NSG is pending after which US Congress to give the final approval for this deal

It undermines the NPT, which states that only countries which renounce nuclear weapons qualify for civilian nuclear assistance.

It could open the way for a potential arms race in South Asia.

Out of 22, 14 Indian nuclear facilities are civilian. Critics say the pact could make bomb making at the other eight easier, as civilian nuclear fuel needs will be met by the US

Global positioning:

Pakistan, the only other confirmed nuclear power not to have signed the NPT, will sign the deal only if India did.

Pakistan's expanding nuclear program could aggravate the rivalry between us.

China supports Pakistan's nuclear weapons program. Some analysts see the Indo-US deal as part of attempts by the US and China, to shore up influence in South Asia by building up rival arsenals.

The IAEA said in 2004 that Libya and Iran's nuclear programs were based on Chinese technology provided by Pakistan.

This deal would benefit India as we would get access to atomic power reactors and 'dual use' technologies useful for its space, medicine and biotechnology programs. It could also sell its expertise and products. However, India has to place the 14 civilian reactors under safeguards from the IAEA. As a reciprocation gesture, we will be assured of fuel supplies for civilian reactors. Already 6 of our reactors are under safeguard of IAEA. With limited quantities of Uranium, this may be useful to us.

The 123 substantially meets Indian concerns on reprocessing (re-using) spent fuel, assures it of nuclear fuel supplies and crucially, does not stop India's right to test a nuclear device, if required. It permits nuclear trade, transfer of nuclear material, equipment, components and related technology and cooperation in the civil nuclear fuel cycle between India and the US. It allows India to create a reserve of nuclear fuel for each of its civilian reactors and provides guarantees for perpetual supply of fuel in case there is a problem.

Hurdles:

Who would ensure that the fuel supplied for civilian reactors are not used for military purposes (by other countries esp Pakistan)?

What will be the effect on Indian Foreign policy (particularly pertaining to Islamic countries who view US as anti-Islam)?

Politicization of this issue.

BJP initiated it but opposes now because Congress would hijack the credentials for this.

Communists, who are more patriotic to China than India would certainly oppose paving way for smaller parties to bargain hidden agenda in the name of avoiding untimely elections!