Washington and Delhi sign civil nuclear agreement

Washington: The United States and India signed a potentially lucrative agreement on Friday that would allow India to buy US civil nuclear technology for the first time in three decades.

Overturning a US ban on nuclear trade instituted after India first tested an atomic device in 1974, the pact will provide India with access to US nuclear fuel, reactors and technology for power generation.

The deal could produce some $27 billion (Dh99 billion) in investment in up to 20 nuclear plants in India over the next 15 years, according to the Confederation of Indian Industry. US, French, Russian and other companies are expected to compete for the business.

The accord, reached after years of negotiations and criticised by non-proliferation advocates, was signed by US Secretary of State Condoleezza Rice and Indian External Affairs Minister Pranab Mukherjee.

The Bush administration believes the agreement will secure a strategic partnership with the world's largest democracy, help India meet its rising energy demand and open up a civil nuclear market.

Vast potential

At a State Department ceremony, Rice said the agreement "demonstrates the vast potential partnership between India and the United States - potential that, frankly, has gone unfulfilled for too many decades of mistrust."

She also noted the efforts that were needed to secure approval for the deal in both countries, referring to the fact that the government of Indian Prime Minister Manmohan Singh nearly collapsed over the issue. "Prime Minister Singh literally risked his political future for this agreement and then remade his government to gain the support that he needed," Rice said.

Before signing the pact, Mukherjee alluded to the business opportunities that may await US firms. "We look forward to working with the US companies on the commercial steps that will follow to implement this landmark agreement," he said.

Seeing red: CPM leader blasts deal

Continuing his hostility to the India-US nuclear deal, Communist Party of India-Marxist (CPM) chief Prakash Karat has described the inking of the 123 pact on Friday as "a black day in Indian history" and a "big surrender before the US".

The CPM general secretary vowed to continue the struggle against the deal, which he stressed was "a big gain for the US and big loss for India". "October 10 will go down in Indian history as a black day as the Manmohan Singh government has signed the nuclear deal with the US."

- IANS