Turning a crucial bend in the current negotiations on the Indo-US nuclear deal, Washington has agreed to put down all its assurances on fuel supply in the 123 bilateral nuclear cooperation agreement, including that of developing a “strategic reserve of nuclear fuel”, to ensure uninterrupted supply over a lifetime of India’s reactors.

This puts to rest doubts that had arisen after the Barack Obama amendment was voted into the Hyde Act, qualifying that fuel supply to India would be commensurate with “reasonable reactor operating requirements”.

With the first couple of US drafts on the agreement unclear on meeting all fuel assurances listed in the Separation Plan which was agreed during US President George W Bush’s visit to India, there was considerable doubt here over Washington’s interpretation of the Hyde Act on this issue.

In fact, matters reached a point where the Department of Atomic Energy made it clear that it will not start serious negotiations on the IAEA Safeguards Agreement until the US position on fuel assurances in the 123 Agreement are in line with the Separation Plan. For India, the decision to place all civilian reactors under permanent safeguards is linked to US assurance on permanent fuel supplies.

So when Foreign Secretary Shiv Shankar Menon said in Washington that there was “considerable progress” in his talks with US Under Secretary of State for Political Affairs Nicholas Burns, fuel assurances was one aspect where this was visible. It’s learnt that both Secretary of State Condoleezza Rice and Burns have assured India that the Bush Administration will not go back on this commitment. This is the first time that Washington will be putting down such assurances in a bilateral nuclear cooperation agreement with any country. However, officials cautioned that no certainty must be attached until the final draft is negotiated.

... contd.