Loader

General Awareness

April 04, 2017 @ 01:15 PM

desktop image
mobile image

April 04, 2017 @ 01:15 PM

Ambiguity @ Indo-US Nuclear Deal

  Published : Friday, 06 January, 2015 11:50 AM
  
MBA aspirants must be updated with General Awareness on current topics. General awareness topics with analytically drawn conclusions will benefit you in XAT, IIFT, CMAT,  MAT,  Essay writing, General Awareness sections besides in GD & PI.  
 
Today, you will read Current Affair Topic: 
 
Ambiguity @ Indo-US Nuclear Deal
 
The Indo-US nuclear deal, which was first conceptualised by the signing of framework agreement on July 18, 2005 by India and the United States (US), was considered as most important diplomatic win for India in the light of the fact that India has conducted two nuclear tests but had not signed the nuclear Non-proliferation Treaty (NPT) and Comprehensive Test Ban Treaty (CTBT). Under this deal, the US agreed to start full civil nuclear cooperation with India while the latter had to separate its civil and military nuclear installations. India is the only country in the world which is not a signatory of NPT and has got this exceptional deal. It signifies the rising importance of India in the current geopolitical scenario. 
 
Obstacles to the Agreement
 
In order to materialize, the deal had to go through many stages in various agencies including an amendment of the domestic of law of the US, an agreement with the International Atomic Energy Agency (IAEA, the international nuclear watchdog), waiver from Nuclear Supplier Groups (NSG, a cartel of nuclear materials), apart from facing various protests from different parties like left, BJP etc. in India. Despite successfully going through so many complex stages to get materialized; the deal was stuck for almost seven years on the question of liability in the event of an accident. This ultimate logjam was cleared during the latest visit of US President Obama to India. Now both India and the US have resolved key hurdles pertaining to the liability of suppliers of nuclear reactors in the event of an accident and the tracking of fuel supplied by the US and other countries for its proposed nuclear plants.    
 
The issue of nuclear liability and tracking of nuclear material supplied were the only bone of contention left for the conclusion of agreement. As per the international norms, in case of any accident, the Indian government would have to pay heavy damages because all the nuclear plants in the country are run by the state-owned Nuclear Power Corporation of India (NPCIL). 
 
As per a new plan, those companies engaged in building nuclear reactors in India would buy insurance from the state-run reinsurer General Insurance Corporation (GIC). The companies would then recoup the cost by charging more for their services. Alternatively, the NPCIL would take out insurance on behalf of these companies. On the question of tracking of nuclear material, the US has agreed to withdraw from tracking clause.
 
Nuclear Deals with Other Countries
 
After all the obstacles to end the nuclear isolation of India were cleared by the IAEA and NSG, France became the first nation to sign a nuclear deal with India. After France, the countries which have agreed to supply the nuclear fuel to India for peaceful uses are Mongolia, Namibia, Argentina, Canada, Kazakhstan, Russia, South Korea and Australia. Now with the clearance of deal with the US as well, India now have supplier from every continent of the world. 
 
Benefits of the Deal
  • Since the nuclear deal had called for the separation of civilian and military reactors, there is no risk of revelation of military secrets of the country as many analysts particularly from left had feared. 
  • The most important benefit from the deal would be the answering of energy woes of India. India is the energy starved country and any addition to the countries energy capabilities would be a welcome step. 
  • As India aspires to increase the share of nuclear energy in total power generation to 9 percent from the current 3 percentapprox in next 25 years, it is highly unlikely for it to achieve this goal with domestic supplies only. 
  • Apart from energy benefits, deal is also of great geopolitical significance making India the only country in the world to have waiver agreement with NSG and IAEA despite being a non-signatory of NPT. 
Concern
  • The major concern raised by the critics of the deal was the enormous cost to generate power from a nuclear reactor. They believe that increasing share of nuclear energy from current three to six percent would require additional capital of around INR 50,000 crores. This is indeed a huge amount for a developing country like India. 
  • Another concern is about safety which became evident after the Fukushima nuclear disaster of Japan in March 2011. Fukushima disaster led many countries rethink their nuclear ambitions. 
Though both cost and safety are real concern but not strong enough to cut short the nuclear ambitions of India. While cost can be taken care of in the long term, with the resolving of liability agreement, safety is also not given a bypass. Moreover, any concern or threat must not be seen as an obstacle but as an opportunity to care of possible ill-effects and device a foolproof plan of development. Energy is most vital requirement for the growth of India and country should ensure the development of all the possible sources of energy including nuclear energy.  
 
  
 
Stay informed, Stay ahead and stay inspired with MBA Rendezvous

Crucial Dates, You Should not Miss

Manav Rachna International Institute
of Research

Admissions Open for all MBA programme at Manav Rachna International Institute of
Research and Studies.
CII School of Logistics Amity University, Delhi and Mumbai
Admissions Open at CII School of Logistics Delhi and Mumbai campus, Apply Now!
GITAM School of International Business, Visakhapatnam
Admissions open for MBA programmes at GITAM. Application Deadline is February 20, 2018
XIME
Application Last Date for Online Submission - February 25, 2018
FORE School of Management
Apply for PGDM & PGDM-IB Programmes. Admissions Open for 2018 Apply Now!
MDI Murshidabad
Applications for PGPM 2018-20 at MDI Murshidabad are open
Institute of Public Enterprise, Hyderabad
Last Date to Apply for IPE, Hyderabad is 17 February, 2018
IMI New Delhi
Admissions Open for Executive PGDM at IMI, New Delhi. Application closes on March 1, 2018.
K J Somaiya Institute of Management Studies & Research, Mumbai
Admissions Open for 2018 Apply Now!
SDMIMD Mysore
Application for PGDM 2018-20 at SDMIMD is open till February 28, 2018
Birla Global University
Admission 2018 Open for MBA at Birla Global University
KIIT School of Management
Admissions Open for MBA at KIIT School of Management through CAT/ MAT/ GMAT/ ATMA/ CMAT/ XAT
TAPMI, Manipal
Last date extended to 11 February, 2018. Apply Now.