India-US Push for Breakthrough on Nuclear Deal, But Stumbling Blocks Remain

New Delhi: Can India and the US achieve a breakthrough in the nuclear deal during President Barack Obama's visit? Sources say the talks in London of the contact group set up by PM Modi and Obama last September, have not made headway on the key hurdles.

The question now is whether the gaps can be bridged when the US President comes to Delhi. 
 
The main stumbling block is not just the liability issue where US companies have concerns about having to pay up huge amounts in case of an accident, but also America's insistence on "flagging" or tracking the nuclear material they supply to India.

The US wants to track the whereabouts of material they supply, which is required under its rules. But India says the demand is intrusive, especially in view of the safeguards of the International Atomic Energy Agency, or IAEA, which are in place.

On Thursday evening, at a briefing of the External Affairs Ministry, MEA spokesperson Syed Akbaruddin said there was some progress in the talks in London. The two sides are keen to achieve a breakthrough and will push hard till the last minute, say sources.
 
Administrative arrangements to "do business" and issues relating also to clarifications of India's liability regime were being discussed.

The implementation of the India-US nuclear deal, worked out during the UPA-I government headed by Manmohan Singh in 2008, had been stalled over the tough provisions in India's Civil Nuclear Liability Act.

India's liability law holds the suppliers directly liable in case of a nuclear accident. The US wants India to follow global norms, under which the primary liability is with the operator, in this case the Indian government.

During his US visit in September, Prime Minister Narendra Modi and President Barack Obama had decided to set up a high-level Contact Group on civil nuclear cooperation.

The group has held several rounds of detailed discussions on a range of implementation issues - administrative, liability, technical and licencing - to facilitate the establishment of US-designed nuclear power plants in India.

"India and US have agreed earlier that US will support India's membership of Nuclear Suppliers' Group," Mr Akbaruddin also said.