U.S. Senate approves Indo–US Nuclear Deal

The landmark Indo–U.S. civilian nuclear cooperation agreement has moved a step closer to being adopted when the U.S. Senate overwhelmingly approved the controversial deal by voting 85 to 12 in its favor, November 16, turning down killer amendments.

Despite the deal's easy passage through the Senate, congressional officials said a number of roadblocks still need to be cleared before the U.S. can begin shipping nuclear fuels to the subcontinent. The U.S. House of Representatives passed a different version of the pact, and the two chambers need to try and reconcile the versions before they adjourn in December.

And Washington still needs the Nuclear Suppliers Group, an international body that regulates the trade in nuclear fuels, to provide New Delhi with clearance. After that, the Bush administration and the International Atomic Energy Association (IAEA) still must reach an agreement with New Delhi over the inspection regime that is required in order for the transfer of nuclear fuels.

However, U.S. industry is already reacting positively to the Senate's move. A number of U.S. corporations, such as General Electric Co. and Boeing Co., are expected to benefit from the new initiative in India.

"India's nuclear energy market – estimated to require $100 billion in foreign direct investment – will open for U.S. companies," said Ron Somers, president of the U.S.–India Business Council.

India has also guardedly welcomed the long–awaited Senate approval, saying key conditions still needed to be addressed.

"I welcome the decision of the US Senate to approve the bill. Before that, the House of Representatives has done a similar thing. [But] We still have a long way to go before nuclear cooperation between India and the U.S. becomes a living reality," Indian Prime Minister Manmohan Singh told a leadership conference in New Delhi.

The U.S. Senate and House of Representatives versions of legislation opening the way for the deal were not identical and the process of reconciling them would "have to take on board our concerns," Singh said.

External Affairs Minister Pranab Mukherjee said New Delhi expected the "final version of the legislation ... should adhere as closely as possible to the understandings incorporated" in previous agreements.

The final version of the bill is expected to be taken up for vote by the US Congress on December 4 and "we must await the final version before drawing any conclusions on the legislation," he said, adding, "The US–India Civil Nuclear Cooperation agreement will bring India into the international nuclear non–proliferation mainstream and will increase the transparency of the country's entire civilian nuclear program."

"As India's economy continues to grow, this partnership will help it meet its energy needs without increasing air pollution and greenhouse gas emissions," he said.

Welcoming the approval of the deal by the U.S. Senate, UPA chairperson, Sonia Gandhi said, "We welcome it (the passage of a bill approving the deal). I believe that the government will study it and formulate a position. The bill will have to be reconciled by the Senate and the House of Representatives. All those areas that are not acceptable to us will be excluded and only then we will welcome the bill happily."

"Nothing will be accepted [by us] which is outside the July 18 (last year) agreement," she added.

"This is an important step in the entire process in getting on with the Indo–US nuclear deal but is not the end of the process," former chairman and current member Atomic Energy Commission, M.R. Srinivasan, said.

"Although today's process has shown a strong bipartisan support in the co–operation regime with India in nuclear matters, we have to wait and see if both the House and the Senate in their joint session in December will take up all the concerns expressed by India through various diplomatic channels," Srinivasan said.

"Though the landmark Indo–US deal was cleared by the Senate after rejecting at least the five killer amendments including one seeking a cap on India's fissile material production, we have to see the language of it," he added.

According to S.K. Jain, chairman of Nuclear Power Corporation, the move by the U.S. Senate is "a welcome step" and he was confident that "there was compulsion on both India and US to go ahead with co–operation."

"We at NPCIL are preparing ourselves for the last one year for the co–operation process and the reconciliation step is being taken appropriately in December followed by the steps taken by NSG and International Atomic Energy Agency to help growth of the nuclear industry in India," he said.

The deal, seen as a symbol of the blossoming relationship between the world's only superpower and the emerging Asian giant, aims to overturn a three–decade U.S. ban on trade in nuclear fuel and equipment with India and end New Delhi's nuclear isolation.

"This really does open up an extraordinary new era both in U.S.–Indian relations but also, I think, for the many interests that will be served from the economic point of view, from an energy point of view, and from a nonproliferation point of view," U.S. Secretary of State Condoleezza Rice said during a visit with U.S. President George W. Bush to Hanoi, Vietnam.

It would open a new era in relations between the once–estranged democracies, she said.

Thursday's Senate vote approved changes in U.S. law to allow nuclear cooperation with India, which has not signed the nuclear Non–Proliferation Treaty. The House had voted in July.

Three 'killer amendments' that had the potential to wreck the historic Indo–US nuclear deal, including one which sought a cap on fissile material production, were defeated in the US Senate which approved the accord overwhelmingly.

Wisconsin Democrat Russ Feingold proposed a killer amendment that required a pre–condition of Presidential determinations that nuclear cooperation with India does nothing to assist, encourage or induce India to manufacture, develop, test or acquire nuclear weapons or other nuclear explosive devices.

The amendment was defeated by a margin of 71 votes to 25 votes.

Another amendment proposed by California Democrat Barbara Boxer required India to suspend military cooperation with Iran and was defeated by a bipartisan vote of 59 votes to 38 votes.

Democrat Jeff Bingaman, also moved an amendement dubbed as a "killer." It sought to link nuclear exports to India to a Presidential determination that New Delhi has halted production of fissile materials was rejected by a margin of 73 to 26.

The bill now needs to be voted jointly by the two houses of the U.S. Congress after they reconcile the separate legislation they have approved, followed by approvals from the International Atomic Energy Agency and the 45–nation Nuclear Suppliers Group.

Washington sought to address India's concerns and reassure New Delhi that it would continue to press Congress to avoid changes in the pact that India sees as attempts to curb its nuclear program and has refused to accept.

U.S. Undersecretary of State Nicholas Burns said he planned to travel to India in mid–December to resolve any outstanding issues and said he was optimistic differences between the House and Senate versions would be ironed out.

"The tough work has been accomplished," Burns told reporters in Washington.

Supporters are optimistic the bills can be reconciled and given final passage before the Republican–led Congress surrenders power to the Democrats in January.

Opponents have contended the agreement harms U.S. security by allowing New Delhi to expand its nuclear weapons arsenal, by fostering an arms race in Asia among India and nuclear rivals Pakistan and China, and by undermining decades of U.S. non–proliferation policy.

In a written statement, issued immediately after the Senate action on Thursday, U.S. President Bush said, "The United States and India enjoy a strategic partnership based upon common values. Today, the Senate has acted to further strengthen this relationship by passing legislation that will deliver energy, non–proliferation, and trade benefits to the citizens of two great democracies."

"The agreement will bring India into the international nuclear non–proliferation mainstream and will increase the transparency of India's entire civilian nuclear programme," he said.

The President said it would also help reduce India's dependence on imported fossil fuels.

"By increasing India's demand for civil nuclear technology, fuel, and support services, this historic agreement creates new business opportunities for American companies and enhances our trade relationship," he said, adding, "I appreciate the Senate's leadership on this important legislation and look forward to signing this bill into a law soon."