The final stretch in the long journey towards the landmark India-US nuclear deal is turning out to be the most tricky one with Washington indicating it cannot let India get “permanent rights” for reprocessing spent fuel.

A commitment on securing these rights coming from Prime Minister Manmohan Singh himself in Parliament means that, finally, the issue may have to be addressed at a political level. Washington’s case is that allowing India to reprocess could open a window for possible diversion while India argues that US has given such rights, with “prior approval” to Japan, Switzerland and the European Union.

So hard negotiations lie ahead for a crucial round of talks from March 26 to March 30 when the US team is here, led by Richard Stratford, Director of Nuclear Energy, Safety and Security in the State Department. This will be the first round of talks since the US Congress passed the Hyde Act enabling full civilian nuclear cooperation with India last December.

Section 123 of the US Atomic Energy Act, which provides for peaceful nuclear cooperation with other countries, lays down nine conditions that need to be met for the US to enter an agreement with India. The Hyde Act exempts India from the second condition in this list that requires all reactors to be placed under safeguards. But India has to still meet the remaining eight. (See chart)

The other key issue for India is the fourth condition in this section. According to it, the US will have the “right to require the return of any nuclear materials and equipment transferred...and any special nuclear material produced” in case India detonates a nuclear device or “abrogates” any condition of the IAEA Safeguards Agreement.

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