Obama in India: Indications that US may back India for Nuclear Suppliers Group membership

NEW DELHI: India and the US achieved a breakthrough towards operationalisation of their civil nuclear deal on Sunday, within hours of President Barack Obama’s arrival in New Delhi.

The arrangement, which comes after years of hard bargaining, was finalised by the two leaders whose bonhomie was evident as they were seen strolling briefly on the lawns of Delhi’s Hyderabad House before sitting over tea outside the grand building. The bilateral talks included a working lunch.

“I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our laws (and) international legal obligations,” the Prime Minister said at a joint press conference with President Obama. Modi also announced that President Obama has assured him of strong US efforts in support of India’s full membership of the four international export control regimes at the earliest. This indicates US backing for a Nuclear Suppliers Group (NSG) membership that India has been seeking. The excellent chemistry between the two leaders was the clincher.

The stage was set after three-rounds of meetings by a bilateral contact group set up by the two government to discuss and iron out the issues. The last meeting of the group was held in London last week.

The two countries in 2008 signed a deal giving India access to civilian nuclear technology, but it has been held up by US concerns over India’s strict laws on liability in the event of a nuclear accident. India had announced that it will not amend its existing Nuclear Liability Act.

“Today, we achieved a breakthrough understanding on two issues that were holding up our ability to advance our civil nuclear cooperation,” President Obama said.

Details on how the impasse has been broken weren’t immediately available. But India had offered to set up a Rs 1,500 cr fund to cover any accident liability to companies that build reactors in the country. Staterun General Insurance Company and four other insurance firms would set up a Rs 750-cr pool, while the other half would be met by the Indian government.

According to government officials, India’s Attorney General, Mukul Rohatgi, would address US concerns over another section of the law that allows for unlimited liability in case of a nuclear accident.