India–United States Civil Nuclear Agreement

India's parliament passed The Civil Liability for Nuclear Damages bill on August 25, 2010,[54][55] which allows the operator to sue the supplier in case of an accident due to technical defects in the plant.

[62] Heavily endorsed by the White House, the agreement is thought to be a major victory to George W. Bush's foreign policy initiative and was described by many lawmakers as a cornerstone of the new strategic partnership between the two countries.

[69][70] The White House had urged Congress to expedite the reconciliation process during the end-2006 lame duck session, and recommended removing certain amendments which would be deemed deal-killers by India.

The Samajwadi Party (SP) which was with the Left Front in opposing the deal changed its stand after discussing with ex-president of India and scientist Dr A. P. J. Abdul Kalam.

To drive home this point, it says the 123 Agreement is not inconsistent with the Hyde Act's stipulation—the little-known 'Barack Obama Amendment' – that the supply of nuclear fuel should be "commensurate with reasonable operating requirements".

The waiver's Section 3(e) refers to this key paragraph, which allows a supplier to call for a special NSG meeting, and seek termination of cooperation, in the event of a test or any other "violation of a supplier-recipient understanding".

The recently leaked Bush administration letter to Congress has cited how this Paragraph 16 rule will effectively bind India to the Hyde Act's conditions on the pain of a U.S.-sponsored cut-off of all multilateral cooperation.

The consensus was arrived at after overcoming misgivings expressed by Austria, Ireland, and New Zealand and is an unprecedented step in giving exemption to a country which has not signed the NPT and the Comprehensive Test Ban Treaty (CTBT)[89][90] The Indian team who worked on the deal includes Manmohan Singh, Pranab Mukherjee, Shivshankar Menon, Shyam Saran, M. K. Narayanan, Anil Kakodkar, Ravi Grover, and DB Venkatesh Varma.

[91] Based on these steps, and without further conditions, the draft waiver would have allowed for the transfer to India of both trigger list and dual-use items (including technology), waiving the full-scope safeguards requirements of the NSG guidelines.

Selig S. Harrison, a former South Asia bureau chief of The Washington Post, has said the deal may represent a tacit recognition of India as a nuclear weapon state,[105] while former U.S.

[114] Daryll Kimball, executive director of the Washington-based Arms Control Association, said the NSG should at a minimum "make clear that nuclear trade with India shall be terminated if it resumes testing for any reason.

"[115] After India was granted the waiver on September 6, the United Kingdom said that the NSG's decision would make a "significant contribution" to global energy and climate security.

[116] U.S. National Security Council spokesman Gordon Johndroe said, "this is a historic achievement that strengthens global non-proliferation principles while assisting India to meet its energy requirements in an environmentally friendly manner.

[121] German Foreign Ministry spokesman Jens Ploetner called India a "special case" and added, "Does this agreement send an approving message to Iran?

[131] In an interview to the Hindustan Times, Chinese Assistant Foreign Minister Hu Zhengyue said that "China understands India's needs for civil nuclear energy and related international cooperation.

[140] A leading advocate of the agreement was India's most eminent strategic affairs analyst K. Subrahmanyam, also known for his long and controversial championing of an Indian nuclear deterrent.

[141] He argued that the convergence of strategic interests between the two nations forced such a remarkable gesture from the US, overturning its decades-long stand on non-proliferation, and that it would be unwise on India's part to spurn such an overture.

[143][144] Former President of India and noted Indian scientist, A. P. J. Abdul Kalam, also supported the agreement and remarked that New Delhi may break its "voluntary moratorium" on further nuclear tests in "supreme national interest".

[150] Ali Ashgar Soltanieh, the Iranian Deputy Director General for International and Political Affairs,[151] has complained the agreement may undermine the credibility, integrity and universality of the Nuclear Nonproliferation Treaty.

"[152] Pakistani Foreign Minister Shah Mahmood Qureshi has suggested his country should be considered for such an accord,[153] and Pakistan has also said the same process "should be available as a model for other non-NPT states".

[156] Brahma Chellaney, a professor of strategic studies at the New Delhi-based Centre for Policy Research, argued that the wording of the U.S. exemption sought to irrevocably tether New Delhi to the nuclear non-proliferation regime.

[159] Secretary of State Condoleezza Rice also previously told the House Foreign Affairs Panel in public testimony that any agreement would "have to be completely consistent with the obligations of the Hyde Act".

[160] Howard Berman, chair of the U.S. House Foreign Affairs Committee, in a letter to U.S. Secretary of State Condoleezza Rice warned that an NSG waiver "inconsistent" with the 2006 Hyde Act would "jeopardise" the Indo-U.S. nuclear deal in the U.S.

[161] Edward J. Markey, co-chairman of the House Bipartisan Task Force on Non-proliferation, said that there needed to be clear consequences if India broke its commitments or resumed nuclear testing.

[165] After Senate approval, US President George W. Bush said the deal would "strengthen our global nuclear nonproliferation efforts, protect the environment, create jobs, and assist India in meeting its growing energy needs in a responsible manner.

June 17, 2008: External Affairs Minister Pranab Mukherjee meets Prakash Karat, asks the Left to allow the government to go ahead with the IAEA safeguards agreement.

Sept 12, 2008: US remains silent over the controversy in India triggered by President Bush's assertions that nuclear fuel supply assurances to New Delhi under the deal were only political commitments and not legally binding.

Sept 13, 2008: The State Department issues a fact sheet on the nuclear deal saying the initiative will help meet India's growing energy requirements and strengthen the non- proliferation regime by welcoming New Delhi into globally accepted nonproliferation standards and practices.

Sept 19, 2008: America's nuclear fuel supply assurances to India are a "political commitment" and the government cannot "legally compel" US firms to sell a "given product" to New Delhi, top officials tells congressional panel.

Oct 10, 2008: The 123 Agreement between India and US is finally operationalized between the two countries after the deal is signed by External Affairs Minister Mukherjee and his counterpart, Secretary of State Rice, in Washington.

U.S. President George Bush and India's Prime Minister Manmohan Singh exchange handshakes in New Delhi on March 2, 2006.
Secretary Rice and Indian Minister for External Affairs Pranab Mukherjee after signing the 123 agreement in Washington on October 10, 2008