This right will come into effect when India builds a dedicated reprocessing facility that meets the current standard of IAEA safeguards. Once India is ready to reprocess, the two sides will begin consultations on the arrangements for reprocessing within six months and complete them in one year.

This two-step process has been criticised by some as inadequate. This, however, is a significant improvement over the Tarapur agreement which had no time lines for a decision on reprocessing. The central consideration for India has been to get an upfront programmatic consent and define credible procedures for subsequent arrangements.

4

Right of return: How will the two countries deal with the “right to return” of US supplied equipment and material in the event of an Indian nuclear test?

With reasonable pragmatism. The 123 Agreement acknowledges the “right to return” and goes on to lay out the potential problems involved. As Article 14.4 points out, both sides “recognise that exercising the right to return would have profound consequences for their relations”.

It calls for consultations in the event the US seeks to exercise this right and suggests that both sides “shall take into account the potential negative consequences of such termination on the on-going projects and contracts”. And Article 14.5 calls for “prompt compensation” in the event the US exercises the right to return. Some have expressed the concern that the right of return might be attached to the 45 nations NSG’s approval of the Indo-US nuclear accord. These fears are entirely misplaced for Article 14.8 insists that the right of return does not “derogate” from India’s right for assured fuel supplies from the international community under Article 5.6.

... contd.