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Nuclear Security: a Fortnightly Newsletter from Caps NUCLEAR SECURITY: A FORTNIGHTLY NEWSLETTER FROM CAPS NUCLEAR SECURITY: A FORTNIGHTLY NEWSLETTER FROM CAPS Vol 09, No. 07, 01 Feb. 2015 MEDIA BRIEFING – Sujatha Singh CONTENTS MEDIA BRIEFING Foreign Secretary on President Obama's Visit to India INTERVIEW Friends, you would all know by now that this is a OPINION historic visit that underlines our deepening NUCLEAR STRATEGY strategic partnership and a qualitative BALLISTIC MISSILE DEFENCE reinvigoration of ties in what has been described as one of the defining partnerships of the 21st NUCLEAR ENERGY century. In the interest of time I will touch only a NUCLEAR COOPERATION few broad points. NUCLEAR NON-PROLIFERATION There have been significant and substantive NUCLEAR SAFETY outcomes on the strategic, civil nuclear, defence, NUCLEAR WASTE MANAGEMENT energy, and economic sides. I will go straight to the civil nuclear side where we have broken the administrative arrangements for implementing logjam of the past few years. our 123 agreement. Let me underline, we have You would recall that during the Prime Minister’s reached an understanding. The deal is done. Both visit to the US in September these understandings are 2014 the two leaders squarely within our law, our reaffirmed their commitment to Based on three rounds of international legal obligations, implement fully the US-India discussions in the Contact and our practice. Group, we have reached an civil nuclear cooperation Insofar as liability is concerned, understanding on two agreement, and established a during the Contact Group outstanding issues namely civil contact group on advancing the meetings the Indian side nuclear liability and the implementation of civil nuclear presented our position administrative arrangements energy cooperation in order to concerning the compatibility of for implementing our 123 realise early their shared goal the Civil Liability for Nuclear agreement. Let me underline, of delivering electricity from Damage Act, and the we have reached an US-built nuclear power plants Convention on Supplementary understanding. The deal is done. in India. Based on three rounds Compensation for Nuclear Both these understandings are of discussions in the Contact Damage, which we have squarely within our law, our Group, we have reached an signed, and responded to international legal obligations, understanding on two questions from the US and our practice. outstanding issues namely civil Members concerning this nuclear liability and the position. Vol 09, No. 07, 01 February 2015 PAGE - 1 NUCLEAR SECURITY: A FORTNIGHTLY NEWSLETTER FROM CAPS The idea of the India Nuclear Insurance Pool as arrangements to implement the 123 agreement. part of the overall risk management scheme for liability was also presented to the US side. Based Question: Madam, what are the assurances that on the presentations by the Indian side and the were given on the liability front, particularly the discussions thereon, there is a general bilateral American concerns on section 46? Also, is there understanding that our law is compatible with the any kind of memorandum that the Attorney General CSC. Many of you would be aware that we had not would have to give to the Americans because that yet finalised the administrative arrangements for is something that the While House briefing has the 123 agreement which we signed in September just indicated? 2008. We have finalised it now. The administrative Joint Secretary (D&ISA): Not section 46 but arrangements text that we have agreed with the section 17 of the law has been discussed with the US conforms to our bilateral legal arrangements US side in the Contact Group, and the as well as our practice on IAEA safeguards. presentations we have given to the US side clarify On the issue of export controls too we have made and underline that these two sections are in progress. The two leaders have committed to work conformity with the CSC. Now you mentioned about jointly towards the goal of India’s phased entry the memorandum. That is work in progress. into the Nuclear Suppliers Group, the Missile Question: … if the Americans Technology Control Regime, have accepted the same kind of the Australia Group, and the There is no administrative arrangement we have with Wassenaar Arrangement. We arrangement that we require French and the Canadians. are grateful that President with France. We have an Obama supports an early administrative arrangement Joint Secretary (D&ISA): There decision on India’s with Canada and that has is no administrative membership in all four been the template for arrangement that we require regimes which will strengthen finalising our administrative with France. We have an global non-proliferation and arrangement with the US. administrative arrangement export controls. with Canada and that has been the template for finalising our administrative On defence and security, we have finalised the arrangement with the US. Defence Framework Agreement for the next ten years. Under the Defence Technology and Trade Question: There was a tracking clause that Initiative (DTTI), four projects have been agreed America was raising that they will track whatever on as pathfinder projects: (1) next generation nuclear things are going to us. What is the Raven Minis UAVs, (2) roll on roll off kits for C- development on us? And is there any insurance 130s, (3) mobile electric hybrid power source, (4) cap in that? Uniform Integrated Protection Ensemble Increment Joint Secretary (D&ISA): The text we have agreed II. We have also agreed on a working group to with the US conforms to our bilateral legal explore aircraft carrier technology, sharing and agreements with the US which are: the 123 design, and also development of jet engine agreement and the arrangements and procedures technology. … on reprocessing. The text also conforms to India’s Question: On the nuclear deal, in simple words practice of IAEA safeguards. So, that is the current what has been achieved? practice of safeguards in India. Joint Secretary (D&ISA) Amandeep Singh Gill: Question: You spoke about the idea of insurance The answer is very simple. As the Foreign Secretary pool to address the liability issue. Could you spell said, we have a deal, we have reached an out the specific? What is this insurance pool, understanding on civil nuclear liability and because there have been speculation all along as finalised the text of the administrative to what has been agreed to in today’s meeting. Vol 09, No. 07, 01 February 2015 PAGE - 2 NUCLEAR SECURITY: A FORTNIGHTLY NEWSLETTER FROM CAPS Joint Secretary (D&ISA): The insurance pool or would really depend if their companies are able what would be called the India Nuclear Insurance to sell you reactors at a price which is comparable Pool is a risk transfer mechanism which is being to other reactors? Techno-economic cooperation formed by GICRE and four other public sector is the way forward? undertakings in the general Foreign Secretary: We have insurance business in India. The insurance pool or what always had a level-playing These companies would would be called the India field. I do not see what the together contribute Rs.750 Nuclear Insurance Pool is a risk issue is over here. I will ask crore to the pool and the transfer mechanism which is Amandeep to elaborate on that balance capacity would be being formed by GICRE and …. contributed by the government four other public sector on a tapering basis. So, this is Joint Secretary (D&ISA): On undertakings in the general the general shape of the pool. the techno-commercial insurance business in India. It is similar to 26 such aspects, that is something for These companies would international pools around the our companies to see. These together contribute Rs.750 world. The details, for example, reactor projects have to be crore to the pool and the of the premiums are being viable in terms of both capital balance capacity would be worked out. And the United cost and per unit energy cost, contributed by the States has committed to work and that is something that our government on a tapering with India to share information companies will work out. But basis. So, this is the general and best practices on the the other two hurdles, as the shape of the pool. It is similar formation of this insurance Foreign Secretary mentioned, to 26 such international pools pool. The important thing for the policy hurdles, we have around the world. you to note is that this is a cleared them today. … complete risk management Source: Excerpted, http:// solution for both operators and suppliers without www.mea.gov.in, 25 January 2015. causing undue financial burden. INTERVIEW – Ratan Kumar Sinha Question: Given that the two companies that are already supposed start those first nuclear reactors Cost Implications of Nuclear Insurance Package in India are tied up with Japanese companies, are are Likely to be Insignificant these deals really going to have to wait for the Nuclear power capacity addition is expected to get Indo-Japan civil nuclear deal to be completed a boost after India and the US arrived at an before we complete ours, and are we going to ratify agreement to operationalise the civil nuclear deal. the CSC now? In an interview with Sanjay Jog, AEC Chairman Joint Secretary (D&ISA): Let me take your second Ratan Kumar Sinha spoke on a number of issues. question first. We have signed the CSC and we are committed to ratify the convention. On your Can you please provide details of the creation of first question about the supply chain situation with insurance pool to provide cover to suppliers who regard to Westinghouse and GE, there are shunned the civil nuclear agreement because it alternatives available, and we do not think that made them liable to pay compensation in the event the absence of an agreement with Japan is an of a nuclear accident? obstacle to taking forward civil nuclear cooperation Several major Indian suppliers, based on their with the United States.
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