Is this true that the 123 Agreement represents a window of opportunity for India in the nuclear area? It took 300 working hours for Indian and American negotiators to put together a 30-page document called as 123 Agreement that will make the Indo-US civilian nuclear deal operational.

Earlier, some of India’s top nuke scientists were in a mess whether they should celebrate the deal or not. Indian Nuclear Society president Placid Rodrigues said that on the face of it, it seems okay, but still we have to wait and watch. Prima facie it looked like a victory for India.

The three major remaining actions that were waiting to be approved from both countries.

[1] A Section 123 agreement for nuclear cooperation between India and the US

[2] Changes to NSG Guidelines

[3] India specific IAEA-India safeguards agreement.

Sec. 123 Indo-US agreement for nuclear cooperation-

Subsection 123 a.(4) of the US legislation states that except in the case of those agreements for cooperation with nuclear-weapon states, the United States have the right to require the return of any nuclear materials and equipment transferred pursuant thereto and any special nuclear material produced through the use thereof if the cooperating party detonates a nuclear explosive device.

Now, the draft 123 Agreement states that the US has basically agreed to grant rights to India to reprocess spent fuel in a dedicated national facility under the International Atomic Energy Agency safeguards. However, the complex details will be worked out at a later stage. India and the US will reportedly start negotiations when India would put foward a request for reprocessing of spent fuel.

At one hand, US has agreed to allow reprocessing of spent fuel but on the other hand, it has refused to give reprocessing technology to India. According to the US laws, the export of reprocessing technology is banned because it can be used for military purposes.

There are some exemptions made by US for several countries such as Japan, Euratom and Switzerland. Indian negotiators had demanded the same exemption for India but failed to persuade US negotiators.

According to the report, the 123 agreement doesn’t ban India from taking reprocessing technology from other countries.

The matter of concern is that if the Nuclear Supplier Group (NSG) adopts the 123 agreement as its fresh guidelines in future, India will lose the right to access the reprocessing technology from any country.

That gives the clear indication that India will be unable to buy components for reprocessing fuel in future.

In the 123 agreement, the US has also kept the right to return if India would go for any nuclear test. After that the US would demand US equipment and fuel back from India. In contradiction, the US has assured India that it would grant continuous operation of US supplied reactors.

The agreement provides assurances for fuel supplies for the lifetime of each of the 14 reactors. The 123 agreement also includes a specific provision that says that the aim of the agreement is not to discourage India’s strategic program.

According to available reports in media, India’s right to test nuclear weapons, guarantees of lifetime fuel supply and India’s right to reprocess the spent fuel have all been covered in the final agreement that has been signed at diplomatic level between both the countries.

India, one of the pioneering countries in applications of nuclear technology for power production, has less than 3 per cent share of nuclear power in the energy mix. Amongst 30 countries in the world that use nuclear power, India stands low at 27.

At this point of time, India is in desperate need to develop the nuclear energy for sustainable growth of the country. The 123 Agreement preserves India’s right to reprocess the spent fuel from civilian reactors producing commercial power.

Some important points regarding the 123 agreement and India’s concerns over the agreement:

# Section 123 is the relevant section of the US Atomic Energy Act of 1954. The 123 Agreement refers to the Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act the US Congress passed in December 2006.

# The agreement indicates about the removal of hurdles in the way of India purchasing long-denied nuclear fuel from the US.

# There were four major areas of concerns between India and the US-

[1] Reprocessing of spent fuel,

[2] The technology for reprocessing,

[3] The right to continue testing,

[4] Uninterrupted fuel supplies.

# Earlier, India had felt that the 123 Agreement was different from that of the Indo-US joint statement of July 18, 2005. This was also looking different from the Nuclear Separation Plan announced on March 7, 2006.

# Critics of the deal said the US shifted area of concerns with regard to civilian nuclear cooperation with India.

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