NEW DELHI/WASHINGTON: A “breakthrough understanding” to open India’s nuclear power sector to US firms reached during President Barack Obama’s visit to New Delhi last month could be finalized this year, Indian officials say.
The Jan. 25 announcement by Obama and Indian Prime Minister Narendra Modi followed six weeks of intensive talks, but few details were released beyond a framework based on India’s acceptance of the principle that plant operators should bear primary liability in the event of a nuclear disaster.
Significant work remains on the fine print of a deal aimed at unlocking projects worth tens of billions of dollars that have been stuck the drawing board for years. India wants to nearly treble its installed nuclear capacity, which would make it the world’s second biggest market after China.
US officials say details of an insurance scheme to protect suppliers from crippling lawsuits need to be thrashed out and India still has to ratify a UN nuclear convention. Indian officials do not rule out completing the process this year.
“We are committed to moving ahead on all implementation issues at an early date,” said Syed Akbaruddin, chief spokesman at India’s Ministry of External Affairs. “There are no policy hurdles left.”
General Electric and Westinghouse, a unit of Japan’s Toshiba, were fully briefed on the meetings of a nuclear “contact group” that hammered out the nuclear compromise in London, say sources with direct knowledge of the talks.
Bringing them into the mix was crucial because the prospect of huge lawsuits, like those against Union Carbide over the 1984 Bhopal gas disaster, has until now kept US and other foreign firms on the sidelines.
India and the United States signed a landmark agreement to cooperate on nuclear power back in 2008. Yet an expected bonanza never materialized because India later passed a law that would expose reactor makers to liability if there was an accident.
The liability issue has became a metaphor for the unrealized potential of the bilateral business relationship and a question mark against Modi’s “Make in India” mantra.
“NOT INCOMPATIBLE“
As the days counted down to Obama’s visit, Indian officials persuaded their US counterparts that their law was “not incompatible” with international standards that place the burden of liability on the operator, said one senior US official.
New Delhi also proposed setting up an insurance pool with a liability cap of 15 billion rupees ($244 million). The state-run Nuclear Power Corporation of India would pay premiums to cover its liability. Suppliers would take out separate insurance against their secondary liability — which could not exceed that of the operator — at a “fraction” of the cost.
India must still ratify the International Atomic Energy Agency’s Convention on Supplementary Compensation for Nuclear Damage (CSC), which requires signatories to channel liability to the operator and offers access to relief funds.
“We would be looking at how quickly we can ratify the CSC — this is part of our assurance to the suppliers, along with the insurance pool,” said an Indian member of the contact group, set up by Obama and Modi at a Washington summit last year.
The US official said Washington expects the Indians to ratify with the IAEA in the near future, along with documentation “stating what their law intends” on the issue of liability, which should offer further reassurance to US firms.
A QUESTION OF DETAIL
The US industry would have preferred the issue to be settled by amending the liability law, something considered politically impossible for Modi to achieve at the moment.
“We want to see all the detail before we say: ‘Yes, it works for us’,” Westinghouse President and CEO Daniel Roderick, who joined Obama’s delegation, told Reuters.
That note of caution, however, masks the extent to which negotiators engaged with the industry to address fears that it could end up on the hook in a disaster on the scale of the 2011 reactor blasts at Tepco’s plant in Fukushima, Japan.
“For the first time, we had a comprehensive inventory of concerns,” said the Indian negotiator.
Westinghouse has been granted land in Modi’s home state of Gujarat to build six reactors, while GE Hitachi Nuclear Energy is eyeing a similar project in Andhra Pradesh. The liability roadblock has prevented commercial talks from starting on the projects, with a combined capacity of 10,000 megawatts.
India has 21 nuclear reactors with an installed capacity of 21,300 MW. It plans to launch construction of 40,000 MW of capacity in the next decade.
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US-India nuclear “breakthrough” could be finalized within year
US-India nuclear “breakthrough” could be finalized within year
Bangladesh votes in world’s first Gen Z-inspired election
- Ousted PM Hasina’s Awami League party banned
- BNP, Jamaat in close race with big economic, geopolitical stakes
DHAKA: For years under former Prime Minister Sheikh Hasina, Bangladesh’s opposition had little presence on the streets during elections, either boycotting polls or being sidelined by mass arrests of senior leaders. Now, ahead of Thursday’s vote, the roles have reversed.
Hasina’s Awami League is banned, but many young people who helped oust her government in a 2024 uprising say the upcoming vote will be the Muslim-majority nation’s first competitive election since 2009, when she began a 15-year-rule.
The Bangladesh Nationalist Party (BNP) is widely expected to win, although a coalition led by the Islamist Jamaat-e-Islami is putting up a strong challenge. A new party driven by Gen-Z activists under the age of 30 has aligned with Jamaat after failing to translate its anti-Hasina street mobilization into an electoral base.
BNP chief Tarique Rahman told Reuters his party, which is contesting 292 of the 300 parliamentary seats at stake, was confident of winning “enough to form a government.”
Analysts say a decisive result in the February 12 vote, instead of a fractured outcome, is vital for restoring stability in the nation of 175 million after Hasina’s ouster triggered months of unrest and disrupted major industries, including the garments sector in the world’s second-largest exporter.
The verdict will also affect the roles of rival regional heavyweights China and India in the South Asian nation.
“Opinion polls suggest the BNP has an edge, but we must remember that a significant portion of voters are still undecided,” said Parvez Karim Abbasi, executive director at Dhaka’s Center for Governance Studies.
“Several factors will shape the outcome, including how Generation Z — which makes up about a quarter of the electorate — votes, as their choices will carry considerable weight.”
Across Bangladesh, black-and-white posters and banners bearing the BNP’s “sheaf of paddy” symbol and Jamaat’s “scales” hang from poles and trees and are pasted on roadside walls, alongside those of several independent candidates. Party shacks on street corners, draped in their emblems, blare campaign songs.
It marks a sharp contrast with past elections, when the Awami League’s “boat” symbol dominated the landscape.
Opinion polls expect the once-banned Jamaat, which had opposed Bangladesh’s India-backed 1971 independence from Pakistan, to have its best electoral performance even if it does not win.
China’s influence increases as India’s wanes
The election verdict will also influence the roles of China and India in Bangladesh in coming years, analysts have said. Beijing has increased its standing in Bangladesh since Hasina was seen as pro-India and fled to New Delhi after her ouster, where she remains.
While New Delhi’s influence is on the wane, the BNP is seen by some analysts as being relatively more in tune with India than the Jamaat.
A Jamaat-led government might tilt closer to Pakistan, a fellow Muslim-majority nation and a long-standing rival of Hindu-majority India, analysts say. Also, Jamaat’s Gen-Z ally has said “New Delhi’s hegemony” in Bangladesh is one of its main concerns and its leaders met Chinese diplomats recently.
Jamaat, which calls for a society governed by Islamic principles, has said the party is not inclined toward any country.
BNP’s Rahman has said if his party formed the government it would have friendly relations with any nation that “offers what is suitable for my people and my country.”
Bangladesh, one of the world’s most densely populated countries with high rates of extreme poverty, has been hit by high inflation, weakening reserves and slowing investment, which has pushed it to seek large-scale external financing since 2022, including billions of dollars from the International Monetary Fund and the World Bank.
Corruption is the biggest concern among the 128 million voters, followed by inflation, according to a survey by Dhaka-based think tanks Communication & Research Foundation and Bangladesh Election and Public Opinion Studies.
Analysts say Jamaat’s clean image is a factor in its favor, much more than its Islamic leanings.
“Voters report high intention to participate, prioritize corruption and economic concerns over religious or symbolic issues, and express clear expectations for leaders who demonstrate care, competence and accountability,” said the survey.
Nevertheless, BNP’s Rahman, son of former Prime Minister Khaleda Zia, is seen as the frontrunner to lead the next government. But if the Jamaat-led coalition emerges ahead, its chair, Shafiqur Rahman, could be in line for the top job.
Mohammad Rakib, 21, who is set to vote for the first time, said he hoped the next government would allow people to express their views and exercise their franchise freely.
“Everyone was tired of (Hasina’s) Awami League. People couldn’t even vote during national elections. People had no voice,” he said. “I hope the next government, whoever comes into power, will ensure this freedom of expression.”
Hasina’s Awami League is banned, but many young people who helped oust her government in a 2024 uprising say the upcoming vote will be the Muslim-majority nation’s first competitive election since 2009, when she began a 15-year-rule.
The Bangladesh Nationalist Party (BNP) is widely expected to win, although a coalition led by the Islamist Jamaat-e-Islami is putting up a strong challenge. A new party driven by Gen-Z activists under the age of 30 has aligned with Jamaat after failing to translate its anti-Hasina street mobilization into an electoral base.
BNP chief Tarique Rahman told Reuters his party, which is contesting 292 of the 300 parliamentary seats at stake, was confident of winning “enough to form a government.”
Analysts say a decisive result in the February 12 vote, instead of a fractured outcome, is vital for restoring stability in the nation of 175 million after Hasina’s ouster triggered months of unrest and disrupted major industries, including the garments sector in the world’s second-largest exporter.
The verdict will also affect the roles of rival regional heavyweights China and India in the South Asian nation.
“Opinion polls suggest the BNP has an edge, but we must remember that a significant portion of voters are still undecided,” said Parvez Karim Abbasi, executive director at Dhaka’s Center for Governance Studies.
“Several factors will shape the outcome, including how Generation Z — which makes up about a quarter of the electorate — votes, as their choices will carry considerable weight.”
Across Bangladesh, black-and-white posters and banners bearing the BNP’s “sheaf of paddy” symbol and Jamaat’s “scales” hang from poles and trees and are pasted on roadside walls, alongside those of several independent candidates. Party shacks on street corners, draped in their emblems, blare campaign songs.
It marks a sharp contrast with past elections, when the Awami League’s “boat” symbol dominated the landscape.
Opinion polls expect the once-banned Jamaat, which had opposed Bangladesh’s India-backed 1971 independence from Pakistan, to have its best electoral performance even if it does not win.
China’s influence increases as India’s wanes
The election verdict will also influence the roles of China and India in Bangladesh in coming years, analysts have said. Beijing has increased its standing in Bangladesh since Hasina was seen as pro-India and fled to New Delhi after her ouster, where she remains.
While New Delhi’s influence is on the wane, the BNP is seen by some analysts as being relatively more in tune with India than the Jamaat.
A Jamaat-led government might tilt closer to Pakistan, a fellow Muslim-majority nation and a long-standing rival of Hindu-majority India, analysts say. Also, Jamaat’s Gen-Z ally has said “New Delhi’s hegemony” in Bangladesh is one of its main concerns and its leaders met Chinese diplomats recently.
Jamaat, which calls for a society governed by Islamic principles, has said the party is not inclined toward any country.
BNP’s Rahman has said if his party formed the government it would have friendly relations with any nation that “offers what is suitable for my people and my country.”
Bangladesh, one of the world’s most densely populated countries with high rates of extreme poverty, has been hit by high inflation, weakening reserves and slowing investment, which has pushed it to seek large-scale external financing since 2022, including billions of dollars from the International Monetary Fund and the World Bank.
Corruption is the biggest concern among the 128 million voters, followed by inflation, according to a survey by Dhaka-based think tanks Communication & Research Foundation and Bangladesh Election and Public Opinion Studies.
Analysts say Jamaat’s clean image is a factor in its favor, much more than its Islamic leanings.
“Voters report high intention to participate, prioritize corruption and economic concerns over religious or symbolic issues, and express clear expectations for leaders who demonstrate care, competence and accountability,” said the survey.
Nevertheless, BNP’s Rahman, son of former Prime Minister Khaleda Zia, is seen as the frontrunner to lead the next government. But if the Jamaat-led coalition emerges ahead, its chair, Shafiqur Rahman, could be in line for the top job.
Mohammad Rakib, 21, who is set to vote for the first time, said he hoped the next government would allow people to express their views and exercise their franchise freely.
“Everyone was tired of (Hasina’s) Awami League. People couldn’t even vote during national elections. People had no voice,” he said. “I hope the next government, whoever comes into power, will ensure this freedom of expression.”
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