NEW DELHI, March 2 The idea of a new India on their mind, Prime Minister Manmohan Singh and US President George W Bush cut through the last fog of a seven-month negotiation process this morning to announce an agreement on a landmark nuclear deal that, when implemented, will bring India out of its 40-year cold into the spring of a new nuclear order.

This agreement—under which India can re-enter the atomic market to quench its growing thirst for energy and get to keep its nuclear weapons—needs the approval of the US Congress. It’s a task which Bush admitted was “difficult,” given the virulent criticism from hawks in Washington who have accused him of wrecking the established nuclear order only for India.

Bush had his hardsell ready. At a press conference after a meeting with Singh today, he couldn’t have been clearer: “The first thing I will say to our Congress is that our relationship is changing for the better...You know, sometimes it’s hard to get rid of history...What this agreement says is things change, times change, that leadership can make a difference, and sending the world a different message (from) what used to exist in people’s minds.”

It was this conviction, sources said, that set the stage for the dramatic announcement after frenetic talks last night. As the first step, Washington accepted the Indian plan for separating its civilian and military reactors. In line with the ‘‘roughly 65 per cent’’ formulation stated by the Prime Minister in Parliament on Monday, India will put 14 of its 22 reactors which also takes into account those currently under construction. The rest will be devoted to the military programme.

The implementation will be phased, to be completed by 2014.

The plan, which is yet to be formally handed over to the US, will be presented in detail by Singh in Parliament on March 6. The fast breeder programme will be kept out of safeguards but US Under Secretary of State for Political Affairs Nicholas Burns later said ‘‘future civilian breeder reactors’’ will be under safeguards.

  The Fine Print  

• 14 of 22 reactors under safeguards • No safeguards on Prototype Fast Breeder Reactor • Future commercial Fast Breeders under safeguards • India-specific permanent safeguards to be negotiated with IAEA • In return, India gets assurances on uninterrupted fuel supply • India reserves right to build future military reactors

The last few days, however, were spent on the nature of safeguards agreement India will sign and linked assurances from the US. Unlike other nuclear weapon states, India will not reserve the right to pull out any of its reactors once they have been put under safeguards.

It was Washington’s condition that India will enter into a safeguards in-perpetuity agreement with the IAEA.

In return, US has assured permanent supply of fuel to India’s civilian reactors and that it would not come in the way of Indian efforts to obtain the same from other countries. This takes care of concerns emerging from the Department of Atomic Energy on the experience it has had with the Tarapur reactors.

The nuclear weapons states have a national security exclusion clause in their safeguard agreements that allows them to withdraw any reactor for security reasons. India will not have the same privilege, instead there will a right to continue a military programme.

This means India retains the right to classify future indigenous reactor as civilian or military depending on its requirements. It is important to note here that none of the nuclear weapon states have exercised this privilege and withdrawn any of their civilian reactors.Countries like France and UK are bound by even more stringent conditions under the Euroatom Safeguards.

This will be an India-specific agreement, a unique exception for India. Sources said reciprocity is the key to this understanding and is built into the deal. So now the US will approach its Congress to amend the laws, adopt an India-specific legislation that will pave the way for a bilateral civilian nuclear cooperation agreement under the US Atomic Energy Act.

India will simultaneously start discussions with IAEA on the safeguards agreement. IAEA D-G Mohammed Elbaradei described the agreement as a ‘‘milestone’’ today and said it will bring India closer to the non-proliferation regime. ‘‘The agreement would assure India of reliable access to nuclear technology and nuclear fuel. It would also be a step forward towards universalisation of the international safeguards regime.’’

The last few elements of the deal, particularly the assurances from the US side, were tied up when Bush and Singh were holding their one-on-one meeting at Hyderabad House. Bush told Rice before the entering the meeting, ‘‘Just sort this out’’. When he came out of the meeting, Rice told him: ‘‘It’s all stitched up.’’

So it was no surprise then that the Prime Minister said: ‘‘But for the President’s leadership, the agreement may not have come so soon, so fast.’’

July 18, 2005: The Decision March 2, 2006: The Deal Next steps to The Dividends  

• Armed with India’s separation plan, Bush Administration will approach US Congress to amend laws for an India-specific legislation. • Condoleezza Rice started making calls to Congressmen and Senators this evening. She was to also speak to heads of the relevant foreign committees in both chambers of the Congress today. • Congressional elections in the US are in 80 legislative days, the Nuclear Suppliers Group (over 40 nations, including US, UK, Russia, France, China) meets in May. Expect the law in between • US will work with partners to approach NSG for exemptions on lines it has agreed to grant. • Once legislation through, India and US will sign a bilateral civilian nuclear cooperation agreement. Fuel supply to Tarapur can begin. • India will start negotiations with IAEA on safeguards agreement and additional protocol.