India can set up at least two dedicated facilities for reprocessing N-fuel, but US retains the right to unilaterally suspend cooperation

New Delhi
30 March 2010

India can set up at least two dedicated facilities for reprocessing US-origin
spent nuclear fuel under IAEA safeguards but the US retains the right to unilaterally
suspend reprocessing-related arrangements and procedures.

The text of the agreement finalised by India and the US notes that both sides agree to
pursue the steps necessary to permit reprocessing at one or more new facilities, beyond
the two facilities provided for in the agreement.

However, additional facilities can be added only with prior US consent.

Washington's rights to suspend reprocessing remain unfettered, particularly in the wake
of a disagreement between India and the US in the mid-1970s over reprocessing of US-
origin fuel at Tarapur, Maharashtra.

As per the text, the US can unilaterally suspend reprocessing in "exceptional
circumstances", or on the grounds of "serious threat" to its national security or to the
physical protection of the facility or the nuclear material, or if it is "unavoidable".

However, the US agrees to exercise due restraint and caution before seeking
suspension in view of the implications of such a suspension on bilateral ties, and to
hold consultations in order to avoid causing loss to the Indian economy.

If the suspension extends beyond six months, both sides will enter into consultations on
compensation for the adverse impact on the Indian economy due to disruption in
electricity generation and loss on account of disruption of contractual obligations.

The "agreed minute" of the negotiations mentions some "understandings" reached by
both sides, "which shall be an integral part of the Arrangements and Procedures".

One of the understandings agreed upon is that "operations at the facility with regard to
non-US-obligated nuclear material shall not be affected by suspension under Article 7."

// Box //

For India:
- India can set up at least two dedicated facilities for reprocessing US-origin spent
nuclear fuel under IAEA safeguards
- India and the US agree to consider reprocessing at more facilities
- The US shall exercise due restraint and caution before seeking suspension

For the US:
- Any new reprocessing facility, beyond the two facilities agreed to, can be added only
with prior US consent
- The US can suspend reprocessing in "exceptional circumstances", or on the grounds of
"serious threat" to its national security or to the physical protection of the facility or the
nuclear material, or if it is "unavoidable"

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