Tuesday, 10 September 2013

Payback time: N-deal for US

NEW DELHI: India will put its money where its mouth is. Battling widespread criticism in Washington that it pocketed a game-changing nuclear deal for free, India will sign a "commercial contract" for a small works agreement with Westinghouse, the only US nuclear company with any declared plan to set up nuclear power plants in India. The nuclear contract, for a modest sum of under $100 million, is expected to be signed between NPCIL and Westinghouse during the visit of PM Manmohan Singh to Washington later this month. While the deal is largely symbolic, it's a sign from India that it will try to walk the talk on welcoming nuclear reactors by US companies. They have refused to invest in the Indian nuclear sector because of concerns about India's nuclear liability law. The Indian government has so far maintained the law should not be a deterrent, but there are no takers in US or other countries for that argument. To that extent, this agreement would be seen as a statement of intent by India, certainly a PM who considers the nuclear deal to be his greatest legacy. Quite apart from the nuclear issue, it's clear the Barack Obama administration has taken India off the radar. During the initial discussions on Singh's visit, the White House, said sources, did not even offer a lunch meeting between Singh and Obama. Instead, a lunch with vice-president Joe Biden was put on the table. India refused. It was only later that the US side agreed to a meal to be shared by the two leaders. Last week's appointment of Rakesh Sood, an acknowledged expert nuclear negotiator, as PM's special envoy on nuclear matters is also seen as an effort to roll back the damage. According to PMO insiders, the appointment was made directly by the PM completely bypassing the MEA, which holds the nuclear policy account. The PM's visit will also be in the background of military strikes on Syria, which could have happened by the time he's there or about to happen. Whatever it is, Syria will be top of mind for everyone in DC, not to speak for Obama himself. The visit is important for Singh, who is looking at securing his legacy on the nuclear front. After he pushed the deal through Parliament in 2008, Singh has allowed the nuclear dossier to be preyed on by the atomic energy bureaucracy, effectively killing the deal. In the last year, the India-US relationship has been about bureaucrats on both sides blaming each other, while the relationship ran aground. 

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