On India’s NSG Waiver

Nuclear Suppliers Group (NSG) Waiver deal is signed and sealed.

Nuclear Suppliers Group (NSG) on September 06, 2008 agreed to grant India a “clean waiver” from its existing rules, which forbid nuclear trade with a country which has not signed the Nuclear Non-Proliferation Treaty (NPT).
Full credit should go to Mr Kakodkar and the current Pm Mr Manmohan Singh  for not buckling under pressure , the men behind pushing this deal. And not just him to others before him like Mr Vajpaye, who announced the testing moretorium and showed the World that India was a responsible nuclear state, without which this deal would not have been possible.

It is definitively a positive step in the right direction as, for the first time in decades, it at least theoretically giving India access to much needed and previously denied technological know how and materials including the very scarce but heavy metal called Uranium. But as in all international treaty s there are still lots of unanswered questions and  things one needs to ponder about.

Is this the best deal India could get at this juncture ? or are we willy nilly being straight jacketed unwillingly into the NPT regime thaks to the one sided 123 agreement are some poignant questions still left unanswered as many points have been interpreted differently in both the Us and India . The NSG deal does not give India the status of a full Nuclear state accorded to the big 5 states in the Nuclear club .

The Chinese who outwardly depicted playing a very positive to neutral role have played a very intelligent silent negative game in the background.

This deal was pushed through mainly because of American diplomatic intervention at the highes levels and it is a matter to be seen if members of the Nuclear suppliers group moreso members such as Austrialia which has deep trading relations with China will oblige by directly supplying India with Uranium without Americas explicit backing or pressure independent of the 123 agreement.

Lastly whatever the rhetoric of Dr Spynx and Baba – who want to portray that this is a Alladin ka chirag during the next general elections, this deal does not sort out the energy woes of this country in a hurry. Remember Modi won thanks to his reforms including the state power reforms, more than his Hindutwa brand.

Nuclear energy is expensive energy and Uranium prices have never been stable or cheap in recent times.

Though we could start running current bunch of reactors at almost full capacity thanks to the additional supply, the fruits of this deal will only accrue, at best in a decades time.

In the mean time India faces a stifling energy crisis and India better attempt to focus on getting its house in order, by implementing some Power Sector Reforms and dealing with the poor state of the almost bankrupt State SEBs thanks to a warped subsidy policy, heavy politicization and free electricity promises, heavy corruption and rampant pilferage or theft including unpaid bills by some lawmakers thanks to the Babu Neta Raj and the almost fullstop on Power sector reforms.

As it is, the govt has hardly augmented capacity and currently the cost of producing electricity and distributing it far outweighs the actual revenues, giving little incentives to the private players to start new pvt power plants based on conventional sources.

Read Not Enough Power To The People, How to solve the power crisis, Mah CMs unpaid bills, HC seeks details of MPs’ unpaid phone, power bills


18 thoughts on “On India’s NSG Waiver

  1. This is a welcome step. However our leaders are capable of messing up anything. We could be having a perfectly good resource but no strategic sourcing let alone implementation.

  2. I wish to see what will be the face value of this waiver & exemptions if India go to do a
    Nuclear test TOMORROW or ANYTIME or If India decides to go ahead with LPG pipeline project with Iran. Legacy Of Americans tell us they will lick as long as one being obedient to them otherwise they will suck. Also, I hope Manmohan singh would be alive that time.

    As always, Illiterate (Sorry, I meant to say common man is still don’t know what is this deal, they just know their daily life is MISERABLE because of UNAFFORDABLE COST OF LIVING) and comic goons are on the street celebrating beating drums as if they got independence from Americans!!.

    Almost 75% of Indians are still living in utter poverty not because our country didn’t have NSG waiver and Nuclear deal. They people who are going to prosper by this deal are a group of American businessmen,a section of NRIs acting as middlemen and CROOKED POLITICIANS IN INDIA.That will remain as a truth.

    If this deal is all about ending acute power crisis in this country, the people all the way praising this deal should wait and see whether this will end the electricity appetite of this nation and how it is going to elevate the poor people of this country. A country with no specific and strict protocols to stop the simple technical faults, transmission leaks and THEFT in electrical transmission systems yet. A country where disaster management,planning & coordination is a myth even in this 21st Century. Still millions are left out homeless in floods every year. who care about them???? I am wondering what this deal is all about!.

    What kind of leaders our people choose and send to parliament, and the people shall have to pay the price for it. What a pity situation of my country!.People are being treated as idiots by their own leaders. This what is Indian democracy!.

    Indians will have to wait for many years and luckly if there is a visionary leader with strong political will and nationalistic agenda, then their dreams can be fullfilled. Otherwise the pockets of polticians are only going to be filled with currencies!


  3. Renjith

    True there are concerns about both the language and the implimentation but until someone like kakodkar is there i dont have to worry too much

    on poverty and mismanagement and inflation blame the upa and the communists who with their bad policy and dole politics has ruined the economics of this nation

    75% of Indians poor ? chk your stats
    i think that is a lot lesser

  4. Prax,

    Statistics are ok..I meant here the people who are living in “Utter poverty” .It makes a difference.However surprisingly the Government statistics show much much less!! .That will fill their stomach?!.

    Anil Kakodkar may not be alive for centuries or even years to come and He can’t stand gaurantee for this deal to more than a billion citizens of this country.That is childish.

    Look at Kashmir..one could have said…”as long as Nehru alive I don’t need to worry”.

    Whatever these so called patriotic,loyal & son- of-soil “statesmen” do ,the common man pay the price for it. Saddly, day by day loosing hope on this nation.India became worst than certain improvished african countries in many aspects if not all.

    I wish to write here a famous quote ” People get what they deserve”

  5. I fully agree with Renjith Nair.

    We need nuclear power but did not need this deal with US. Regardless of what is said that the Hyde’s Act is not binding on us, we will find out one day that it is – when there will be no turningback.

    We simply needed enriched uranium to kick start our own thorium reactors – built by our scientist after US left us in the cold after Pokhran.

    If US is so eager to help us, they could have
    1. put as much pressure as they weilded over the NSG, on the world nuclear community to shift the time threshold and include India and recognise us as the sixth nuclear nation.

    2. could have sold us / loaned enriched uranium – they have huge stockpiles of the stuff from their scrapped nuclear arsenal.

    Instead of letting us become a true nuclear power – they have put a collar and chain around our neck.

    The beneficiaries are the businessmen, the crooked politicians getting handbacks. We have so quickly forgotten the Gandhi – Quattrocchi interference with the Bofors deal.

    We have simply been bushwhacked. There is nothing for the common Indian to exult about.

    And yes I agree, we get what we deserve.

  6. Might sound like great news, but I’m sure when it goes to the US Congress for deliberation next week, something ugly will rear its head… Life’s never so simple! 😀

  7. each nation takes care of its interests except India and our nation is learning fast… hopefully

    for the americans- it is better to have india which is a growing country both in terms of economy and fuel needs to be made to get expensive power while bush builds his external policy legacy

    but to choose a partner Us is anytime better than China – which is the worst in terms of being reliable

    nikhil u said it – im neither very comfortable with the 123 , but we can’t let status quo remain forever as in the end we will be suffering – kalam has a point – supreme national interests are vital for any nation and no one can prevent india from doing nuke tests but the indian leadership itself – even if the congress delayed pokhran 2 for well over a decade vajpayee finally did them
    so im not that afraid of the future as we can still grow to compete with china economically …
    The worldwide production of uranium in 2003 amounted to 41,429 tonnes, of which 25% was mined in Canada. Other important uranium mining countries are Australia, Russia, Niger, Namibia, Kazakhstan, Uzbekistan, South Africa, and the USA.

    so id be comfortable if India pursues separate deals with some of these countries but will us pressure allow that?

    Renjith how can u equate poverty with uranium procurement or nuclear supplies?
    it is the poor that vote the govts in and ur right
    People get what they deserve”
    no wonder the people deserve the mismanagement and inflation sparked by the bad economic policy of the govt subsides and doles that are distributed on their names

    little indian
    i agree about the thorium but developing technology will take time
    but signing agreements does not mean mass scale uranium dependence on foreign sources – as i see it it is better to sign and sit on it and buy what is most required and what was previously denied as at least we are out of the denial regime

  8. From what i have read, it does.
    It will take a long time for us to process the uranium we buy to get enough enriched isotopes to start our thorium reactors.
    While all this while these ready to go live reactors will sit idle, perhaps for years. The work of our own scientists gone down the drain. Billions will be spent on contracts – the ‘private’ companies who lobbied for this deal will be the profiteers.

    Why be so eager to sign a document – when we had the leverage to get what we really want to get our own reactors starting immediately.

    Will our PM er, Mrs Sonia Gandhi answer that?
    They will not, they want their instant profits, what ever it may be.
    Knowing the adverse repurcussions of this deal will become apparent only to our following generations.
    They will be long gone by then.

  9. I came here to read the comments and strangely didn’t find them, although it says 10 comments at the top of the post. One of the mysteries of wp I guess or maybe something is wrong with my browser or internet connection.

  10. so where is ur comment Nita? cause both comments are, i guess irrelevant in the context of this post
    It has been a long time u have commented on my blog welcome again !

    little indian
    i being no expert dont think things will be allowed to goto waste – at least i hope not…

    one more thing – this whole nuke deal seems to just be a ruse for Dr spynx to install baba on the gaddi, that from all the politics and the speech of Rahul in parliament documenting failure of family planning policy of India, She needs some rabble rousing and this deal will sure be the election nara now that garibi hatao congress haat aam admike sath have failed miserably.

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