NEW DELHI, JANUARY 7: India and the International Atomic Energy Agency (IAEA) have covered significant ground towards working out a safeguards agreement at the second round of negotiations held last week in Vienna, but sources indicate that another round of technical talks may be needed before an agreed text is possible.

Indicating that the next round of talks could take place in mid-January, an IAEA spokesperson, when contacted, said: “The latest round of talks ended last Saturday and the consultations are planned to continue next week.”

At the heart of the matter is the Indian requirement of placing in the safeguards agreement a mention of its right to take “corrective measures” in case there is disruption in fuel supplies. Also, both sides are still to agree on the specifics of the amount of fuel that India may hold in its strategic reserve to cater for the lifetime supply of its reactors — an issue which both sides feel would be resolved in due course.

According to sources, IAEA does not have a precedent where there is any mention of a right to take corrective measures. But with the UPA government having made it explicit that this right would be mentioned, negotiators are facing a tough time finding some meeting ground. The indications are that a political call would have be taken in New Delhi on the extent to which it insists on all its key concerns being reflected in this agreement.

On the technical side, negotiators seem to have arrived at an understanding on all operative issues. The main concern remains the limits to which IAEA can deviate from the standard INFCIRC 66 model safeguards agreement. The argument from the Agency, sources said, is that the agreement has to be also acceptable to all 35 members of the IAEA board of governors.

While all indications are that talks have proceeded to a point where only one or two tricky issues remain to be resolved, sources said, another round of technical talks would be needed to tie up some loose ends.