US govt cites economic benefits from nuclear deal
Studies suggest that just 2 of reactor contracts for US firms would add 3,000-5,000 direct jobs and about 10,000-15,000 indirect jobs in US. Indo-US airforce exercise
By PTI |
WASHINGTON: With the business community in the US lobbying hard for a legislative nod for the Indo-US nuclear deal, the Bush administration is also working overtime to convince lawmakers of the economic benefits that will accrue for American firms as a result of the agreement.
Pointing to the "Letter of Intent" that India has provided to the US to purchase reactors with at least 10,000 Mega Watts (Mwe) worth of power generation from American firms, a senior state department official told the Senate Foreign Relations Committee that US firms will lose a crucial pie of the business if the deal was not operationalised.
"The Indian government has publicly stated its intention to work with US nuclear firms. But international competition will, inevitably, be intense and we want to avoid exposing US firms to any unnecessary delays," Under Secretary of State for Political Affairs William Burns said in his Written Statement to the Senate Panel.
"Without approval and implementation of the 123 Agreement, however, US nuclear firms will be precluded from competing in this important new global market," he wrote.
Besides the purchase of reactors, India has committed to devote at least two sites to US firms, Burns said, adding the expansion of US nuclear firms into India's growing market will provide a boost for US's domestic nuclear industry.
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Burns said India has also committed to adhere to the Convention on Supplementary Compensation for Nuclear Damage. "Adherence to this international liability regime by the Indian government is an important step in ensuring US nuclear firms are competing on a level playing field with other international competitors," he said. (MORE)
In his formal presentation to the Senate Panel, Burns pointed out that the civilian nuclear initiative enjoys strong support from US industry, with India's nuclear plans justifying it.
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"Indian officials indicate they plan to import at least eight new 1,000-megawatt power reactors by the year 2012, and additional reactors in the years ahead," Burns said, drawing attention to the strong "commercial letter" of intent negotiated with India and strongly endorsed by key US firms". Preliminary private studies suggest that even just two of these reactor contracts for US firms would add 3,000-5,000 new direct jobs, and about 10,000-15,000 indirect jobs in the US, the senior state department official told the powerful panel.
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The issue of benefits and jobs was brought up by Republican Senator John Barrasso of Wyoming during the question and answer session. Burns also stressed that crucial economic and environmental benefit will accrue to India through the operationalisation of the 123 agreement with the US.
"There's a huge environmental benefit I think for all of us as India's growing energy needs get addressed not by coal and other forms of energy, which can be deeply dangerous to the environment but by cleaner methods like nuclear energy," Burns replied.
A lawmaker on the panel questioned the administration's hurry in seeking a Congressional nod for the landmark agreement.
"Could you explain the hurry on this? What is the urgency here in terms of wanting an agreement in this shortened time frame?" asked Virginia Democrat James Webb.
Replying to Webb, Burns cited the "momentum" built up with India over the course of negotiating the agreement and said an approval for the deal "will create an even stronger foundation for the next administrations in both countries to build on."
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