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This is an archive article published on May 29, 2008

N-deal: Delhi debates, others do it

While the Indo-US nuclear deal gets delayed over Left opposition and the domestic programme faces a severe uranium crunch...

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While the Indo-US nuclear deal gets delayed over Left opposition and the domestic programme faces a severe uranium crunch, international nuclear politics has only gained momentum in the past month with all key powers, including Russia and China, securing deals to expand civilian nuclear commerce in the face of rising oil prices and to counter climate change.

Last week, Russia and China, the two countries with which the Left wants India to forge a stronger alliance, signed a $1-billion nuclear deal which, among other things, commits Russia to construct a uranium enrichment plant in China. The deal was signed during the visit of new Russian President Dmitry Medvedev to China.

Even though there is no restriction on transfer of enrichment technology between two nuclear-weapon states, countries have maintained caution. In fact, the Nuclear Suppliers Group is discussing a draft proposal to ban such transfers and the matter was discussed in the just concluded NSG meet.

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That Russia chose to not only part with the technology but also help fund and set up a new plant, sources said, is a significant leap in China’s civilian nuclear profile.

On the margins of the visit, Sergei Kiriyenko, head of Russia’s nuclear agency Rosatom, revealed that Moscow and Beijing were in talks to operationalise an 11-year-old contract to construct two more 1000 MW reactors worth $3.3 billion at China’s Tianwan facility which was initially also supported by Russia.

Russia has already signed a 123 agreement with the US while China is in the process of purchasing Westinghouse reactors from Japan with assistance from Washington. All this is happening regardless of shifting equations in the bilateral relations between US, Russia and China.

Not just China and Russia, there is a rethink happening across Europe with Italy indicating earlier this month that it plans to reverse its 20-year-old ban on building nuclear power. “During the term of this parliament, we will lay the first stone for the construction in our country (Italy) of a group of new generation nuclear power stations,” said Italian Economic Development Minister Claudio Scajola last week to the Italian confederation of Industry and added that Italy can “no longer avoid an action plan to return to nuclear power”.

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Even Netherlands, which has always opposed spread of nuclear technology, showed signs of a rethink. Dutch Economic Minister Maria Van der Hoeven told The Financial Times last week that there cannot be a nuclear-free future if the Netherlands wants to meet its targets to cut carbon emissions. The Dutch currently have only one nuclear plant. “We are very gas dependent and we have to do something about it.”

A broad survey shows that all key countries have begun taking initiatives to expand the civilian nuclear sector even as India dithers despite an early start in 2005.

China:

Plans to augment share of nuclear power from 2.3 per cent to 5 per cent by 2020 and targets to build 300 nuclear power plants by 2050.

Has worked out deals with US, France and Japan to buy new reactors. China has also entered into long-term contracts with Russia, Australia and Niger for uranium supplies. Observers say the uranium deals are aimed at hedging rapidly rising uranium costs.

Russia:

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Joins US President George W Bush’s Global Nuclear Energy Partnership programme and signs 123 agreement despite growing tensions in the bilateral relationship.

Plans to build 40 more reactors by 2030 to raise the share of nuclear power from 16 per cent to 25 per cent.

In view of increasing international demand, Russia has plans to export 60 reactors by 2030.

US:

It has reversed a 30-year-old moratorium on building nuclear power plants and plans to increase number of reactors from 103 to 300 by 2050.

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Has agreed to engage China, considered earlier a pariah on nuclear issues, in building nuclear power plants there through EXIM bank loans.

Besides launching GNEP, has announced tax rebates and other sops to promote nuclear energy in its Energy Policy Act of 2005.

The big powers apart, even neighbouring countries like Pakistan and Sri Lanka are actively pursuing the possibility of securing deals for nuclear reactors. In fact, one of the opportunities from the nuclear deal would be that India could export its 220 MW reactors to smaller developing countries. Instead, while other powers are moving at a frightening pace securing reactors and supplies, India is headed for it worst fuel supply crunch with most reactors running at half their capacity.

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