A landmark civil nuclear cooperation deal came into force on July 21, 2017.
This deal was signed on 11th November, 2016 during PM Narendra Modi’s visit to Tokyo after six years of negotiations. The signing was marked by the exchange of diplomatic notes between the foreign secretary, S. Jaishankar and Japanese Ambassador, Kenji Hiramatsu.
The agreement deals with the peaceful usage of nuclear energy by the respective countries and is a reflection of the strategic partnership between India and Japan, which will thereby pave the way for enhanced cooperation in energy security and clean energy. It seeks to promote full cooperation between the two countries in the development and uses of nuclear energy for peaceful purposes on a stable, reliable and predictable basis, as stated by the Ministry of External Affairs.
The deal allows Japan to export nuclear technology to India, making it the first non-NPT signatory to have such a deal with Tokyo and is essential for bringing a network of nuclear energy cooperation for India in a time when the prominent nuclear conglomerates like Toshiba will have an essential role in the supply of technology by the United States for the pair of six reactors in Andhra Pradesh.
Japan, by virtue of this deal has undertaken the task of assisting India in nuclear waste management and may also seek to jointly manufacturing nuclear power plant components under the Make in India initiative.
Westinghouse, which is to set up six nuclear reactors in Andhra Pradesh, will supply technology and construction will be undertaken by a relevant Indian partner. This was discussed as a way out to getting Westinghouse into India following troubles over its bankruptcy as outlined by PM Modi’s entourage during a visit to Washington. The finance for the project from the US Exim Bank remains intact and the initiative would start in 2018.
Westinghouse is caught in a bankruptcy quagmire and there is no functional reference atomic plant –– a pre-requisite to obtain permission from the Atomic Energy Regulatory Board (AERB), India’s nuclear watchdog. Westinghouse, which was acquired by Japanese conglomerate Toshiba in 2006 for $5.4 billion, filed for bankruptcy in March. Top Westinghouse officials visited India twice since March to assure that the project is on track.
Japanese PM Shinzo Abe is all set to visit the country in the month of September, thereby highlighting the ties between the countries.
