Senate Lifts Nuclear Trade Ban With India

123jump.com Staff
01 Oct, 2008
New York City

The U.S. Senate passed with overwhelming majority nuclear trade treaty with India. The approval with a vote of 86-13 lifted three decade ban on trade is expected to open doors to india to sell nuclear technology, fuel and reactors.

11:10PM New York – India-U.S. nuclear deal was approved by the U.S. Senate lifting three decade of ban on nuclear trade.[/R]

The Senate also passed landmark bill that resumes civilian nuclear trade with India. The bill was approved with 86-13 votes. The President Bush and Prime Minister Manmohan Singh of India had worked hard for the bill’s passage despite a stiff resistance in legislative bodies in both countries for the bill.

The nuclear deal between the two nations nearly dissolved the Congress party led United Progressive Alliance in India.

The U.S.-India deal will resume the sale of civilian nuclear technology and fuel and permit the building of nuclear plants in India as it races to catch up with its growing energy requirements to keep the economic growth above 7%. The nuclear deal also provides the U.S. with a democratic counterweight in the region against ambitions of China.

India suffers from shoddy and inadequate power supply as the country races to modernize its infrastructure. However, power cuts frequent in most regions in the nation and many cities with more than 3 million population endure load shedding and power cuts for hours during the peak summer season. India’s power supply has been growing at anemic rate of 4% and demand has been increasing at more than 6%. Most of the power plants use hydro and coal energy.

India has never signed the Nuclear Nonproliferation Treaty which was organized after India tested its first atomic bomb in 1974 and later retested more advanced nuclear device in 1998. The cartel of 45 nuclear fuel exporting nations called Nuclear Suppliers Group was organized by the U.S. in response to the India’s explosion. The NSG approved the resumption of trade with India after nearly 34 years of ban.

The agreement brings the 14 civilian nuclear power plants under the supervision of international monitoring agencies but excludes the 8 military reactors. By one estimate India hopes to spend more than $100 billion in building 35 nuclear power plants.

Nuclear deal with the U.S. proved even more divisive in India. The ruling coalition member Communist Party of India dropped out of the coalition and Prime Minister Singh was forced to face vote of confidence on the floor of parliament which he survived.

France and Russia are already jockeying for business with India now that the country is welcome in the international nuclear club. Bechtel and General Electric will be free to compete for to build more than 35 nuclear power plants.