India, US hope to clinch agreement on reprocessing n-fuel

New Delhi, Oct 4 (PTI) India and the US may clinch the
much-awaited "arrangements and procedures" agreement on
reprocessing the spent nuclear fuel of American origin when
they meet in Vienna soon.

The talks between officials of the nuclear establishments
of the two countries are expected to take place within the
next fortnight and will be observed very closely by US
companies which are keen to set up nuclear power plants in
India.

The first round of talks in July in Vienna were "very
surprising for both the sides", sources close to the
negotiators said.

Department of Atomic Energy officials also said the two
sides had made "good progress" in the first round of
discussions and were optimistic that agreement could be
clinched "in a couple of months".

The talks are being considered as a significant step to
take forward the operationalisation of the Indo-US nuclear
deal.

The consultations are being based strictly on Article 6
(III) of the 123 agreement between India and the US.

According to the agreement, to bring reprocessing rights
into effect, India has to establish a new national facility
dedicated to reprocessing safeguarded nuclear material under
the safeguards of International Atomic Energy Agency (IAEA).

Also, India has to reach an agreement with the US on
"arrangements and procedures" under which such reprocessing
will take place in this new facility.

Conclusion of the talks is crucial for the US companies
to start nuclear commerce with India.

US energy majors -- Westinghouse-Toshiba and GE-Hitachi
have inked pacts with state-run Nuclear Power Corporation for
setting up nuclear parks in India.

India has earmarked two sites -- Mithi Virdi in Gujarat
and Kovada in Andhra Pradesh -- to host the US nuclear reactor
parks.

Designation of the sites was advocated by the US-India
Business Council (USIBC), the Washington-based trade group
that championed the successful US initiative to end the global
ban against commercial nuclear trade with India.

In September last year, the 45-nation Nuclear Suppliers
Group amended its rules to permit India to engage in
international trade in commercial nuclear equipment, fuel and
technology.

In the year since, India has moved forward signing
nuclear cooperation agreements with Russia, France, Namibia
and Kazakhstan.

Besides the US, France and Russia will also develop
nuclear parks in the country with each park hosting between
six and eight atomic reactors.

Russia is already building two reactors at Kudankulam in
Tamil Nadu, while France's Areva has been allocated Jaitapur
site in Maharashtra to set up nuclear plants. PTI SKU
JVN