India has shared with the US the broad contours of setting up a dedicated national reprocessing facility to handle US-origin nuclear fuel. This is a key step forward towards concluding discussions on reprocessing before Prime Minister Manmohan Singh visits Washington in November.

It’s learnt that both sides made considerable progress in the second round of talks held in Vienna last week and agreed to meet again next month so that negotiations are wrapped up before Singh travels to the US on November 24 as US President Barack Obama’s first state guest.

Under Article 6 of the 123 agreement, US recognised India’s right to reprocess imported fuel. It was agreed that arrangements and procedures would be settled through negotiations. Both sides agreed that the talks would start within six months of either side initiating the request and would have to conclude within a year.

The talks started in July and so the two sides have time until next July but have agreed to take advantage of the momentum building up ahead of Singh’s visit. For its part, India agreed to set up a dedicated national reprocessing facility under IAEA safeguards.

In the talks, headed by Department of Atomic Energy’s Ravi B Grover and US Director for nuclear energy affairs in the State Department Richard Stratford, India shared broad details of the facility it plans to set up. Once the procedures are agreed, sources said, India will get on to the task of building the facility.

Officials here say it’s important for the US to wrap up these talks to help clear the road for its ailing nuclear industry.