Nuclear deal in mind US removes curbs on BARC and two others

Context: The US Bureau of Industry and Security (BIS) removed three Indian
nuclear entities, Bhabha Atomic Research Centre (BARC), Indira Gandhi Centre
for Atomic Research (IGCAR) and the Indian Rare Earth Limited (IREL) from its
‘Entity List’. The US Entity list is a list of foreign individuals, Businesses
and organisations that are subject to export restrictions and licensing
requirements for certain goods and technologies. The list is used ostensibly to
prevent unauthorised trade in items that could be diverted to terrorism,
weapons of mass destruction (WMD) or other activities that are perceived by the
US as going against its foreign policy or national security interests.

Key points

·       Overview: The US is
finalizing measures to ease regulations hindering civil nuclear cooperation
with India, as part of advancing the Indo-US nuclear deal.

·       Indo-US
Civil Nuclear Deal: The Indo-US Civil Nuclear Deal, signed in 2008,
marked a watershed moment in India-US relations. It allowed India to engage in nuclear trade despite not being a signatory
to the Non-Proliferation Treaty (NPT). The agreement granted India access to
nuclear fuel, reactors, and technology for civilian purposes while committing
to the separation of its civilian and military nuclear programs under IAEA
safeguards.

Progress - The deal
received initial enthusiasm, leading to amendments in US laws like the Hyde Act
to accommodate India's unique status. India signed agreements with several
countries for nuclear fuel and reactor technologies. However, the
operationalization of the agreement has been slow, with limited progress in the
construction of nuclear reactors or the flow of significant US investments.

Technological
Constraints in India’s Nuclear Programme - India’s civil nuclear
programme primarily relies on Pressurised Heavy Water Reactors (PHWRs) using
heavy water and natural uranium. PHWRs are becoming outdated compared to the
more widely adopted Light Water Reactors (LWRs), where the US, Russia, and
France lead in technology.

·       Key
Legal Barriers to Indo-US Civil Nuclear Deal: US Regulatory
Impediments (10CFR810) - Part 810 of Title 10, Code of Federal Regulations,
under the US Atomic Energy Act of 1954, restricts US nuclear vendors from
manufacturing equipment or performing nuclear design work in India. This limitation
hinders India’s aspiration to participate in the manufacturing value chain and
co-produce nuclear components for joint projects.

India’s Civil
Liability for Nuclear Damage Act, 2010 - The Act holds suppliers
liable for damages in case of a nuclear accident, deterring foreign vendors
like GE-Hitachi, Westinghouse, and Orano from investing in India’s nuclear
sector. Concerns about future liability remain a significant hurdle for
international players.

·      
New initiatives signed between India and
the US: Civil Nuclear Cooperation - US announced to remove restrictions
e.g., supply of US nuclear reactors on Indian nuclear entities like Bhabha
Atomic Research Centre (BARC) to implement India-US civil nuclear cooperation
agreement.

Sonobuoy
Co-Manufacturing - It aims to bolster the Indian Navy's underwater
threat detection capabilities, particularly in detecting submarines and other
hostile underwater objects.

Missile Export
Control - The US NSA briefed India on updates to missile export controls under the
MTCR, enhancing space cooperation and creating new collaboration opportunities.

Advancement of
iCET - Both nations reaffirmed cooperation in emerging technologies such as
artificial intelligence, quantum computing, telecommunications, and space.

·      
Way forward: Reducing
Dependency on China - Sullivan criticized China’s “predatory industrial strategies”
in sectors like chip manufacturing and clean energy. US companies, including
Apple, are diversifying supply chains and expanding into India, with over 25%
of iPhones expected to be made in India soon. Sullivan stressed the importance
of India-US collaboration to safeguard critical supply chains and technologies.

Ensuring
Dual-Use Technologies’ Security - Sullivan highlighted the need to prevent
advanced technologies from falling into the wrong hands, referencing Russia and
its S-400 air defence system. He underscored India-US cooperation for peace and
stability in the Indo-Pacific region.