Japan may suspend nuclear talks with India; puts Manmohan Singh's ambitious nuclear programme in jeopardy

New Delhi
16 July 2011

Prime Minister Manmohan Singh's ambitious nuclear energy
programme risks being grounded even before it could take off with Japan
signalling its intention to suspend negotiations with India, and other
countries, for sale of nuclear-power equipment and technology.

Prime Minister Naoto Kan of Japan has indicated his personal preference
for phasing out nuclear power in his country. It could not have come at
a worse time for Prime Minister Singh, whose government is reeling
under the effects of a recent Nuclear Suppliers Group (NSG) decision to
restrict the sale of enrichment and reprocessing (ENR) technologies.
His government is also battling pressure from American government and
companies alike, to cushion the impact of Indias civil nuclear
liability law on the suppliers. That and the growing climate of
disenchantment with nuclear energy following the Fukushima disaster in
Japan could potentially unravel Prime Minister Singhs nuclear gambit
for which he has had to invest significant political capital in his
first term in office.

Japan needs to sign bilateral nuclear cooperation agreement with India
and have it ratified by its parliament before it can export nuclear
power technology and equipment. Compounding the problem for India is
that a delay in wrapping up the India-Japan bilateral nuclear pact will
pose a handicap for companies, both Japanese and foreign. Two major US
firms, General Electric and Westinghouse, are either partly or wholly
owned by Japanese companies. Even the French state-owned nuclear power
group Areva has a tie-up with Mitsubishi of Japan.

India is keen to tap Japans experience of constructing the Rokkasho
reprocessing plant with indigenous technology in 1992. India has
concluded negotiations for a reprocessing pact with the US which will
allow setting up of at least two dedicated facilities for reprocessing
US-origin spent nuclear fuel under IAEA safeguards. India and Japan
share similarities in their strategies for the development of nuclear
power. Both have adopted a closed fuel cycle, which entails management
of toxic waste by reprocessing the spent nuclear fuel. Also, they have
opted for a comprehensive fuel cycle, from mining to reprocessing. The
Rokkasho plant has built-in IAEA monitoring equipment and other
advanced design features and India can do with Japan's experience for
designing a state of the art, modern reprocessing facility here.

India and Japan have held three rounds of negotiations so far. Both
sides exchanged views on various aspects related to nuclear energy as
recently as April this year, during foreign secretary Nirupama Raos
talks in Tokyo. Both sides will continue to discuss the way forward
for cooperation in this sphere, a statement issued towards the end of
her visit had said.

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