DEAL FINALLY GETS N-ERGISED

The US Congress gave India a rousing welcome to the nuclear club, rejecting 2 killer amendments in the process. Some concerns remain though... Condoleezza Rice In New Delhi On Sat To Sign Deal

Nirmala Ganapathy NEW DELHI 

    PRIME Minister Manmohan Singh has got his biggest foreign policy trophy with the US Congress giving its approval to the nuclear deal, ending a three-year-long journey replete with political drama and diplomatic intrigue. 
    Pushing India into the nuclear club, the US Senate voted overwhelmingly in favour of the legislation — US-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act — with 86 senators voting for the deal and 13 against. Two killer amendments were struck down, much to India's relief. 
    For US President George W Bush, this sweet victory came in the backdrop of continuing financial woes and domestic unpopularity while for Mr Singh, it was tempered by problematic provisions in the legislation. Significantly, there were no celebratory statements from the government. 
    There are now two steps that can happen without any particular sequence, according to US officials. The bill can go to President W Bush to be signed into law or the US can go ahead and sign the bilateral agreement with India. Secretary of State Condoleezza Rice is likely to be in New Delhi early on Saturday to sign the agreement with external affairs minister Pranab Mukherjee on the same afternoon. India, of course, would prefer Mr Bush to sign the legislation into law first, so that the accompanying signing statement overrides some of the new, harsh riders accompanying the 123 agreement. 
    Under the guise of ensuring that nuclear technology and fuel are not diverted to India's military weapons programme, the US Congress has put in certain provisions that are causing discomfort to India. As things stand, fuel supply guarantees and fuel stockpiles for the safeguarded reactors remain a grey area, reprocessing technology and reprocessing of spent fuel will only come after further Congressional movement and a nuclear test will ensure that India is sent back to the technology denial regime. 
    But US ambassador to India David C Mulford, who called the deal the "greatest diplomatic initiative by the US," maintained that the 123 agreement would govern nuclear cooperation between India and the US. 
HOW THE DEAL WAS SEALED 
Aug 1: IAEA okays India-specific safeguards agreement. 
Sept 6: NSG approves a waiver for India opening the doors of civilian nuclear commerce. 
Sept 23: Senate Foreign Relations Committee approves the 123 agreement legislation. 
Sept 27: US House of Representatives approves deal. 
Oct 1: Senate approves the deal with 83/13 margin. SOME RIDERS THOUGH 
Hyde Act and 
US Atomic Energy 
Act supercedes the 123 agreement clashes with the Indian government's view. 
Fuel supply guarantees were "not legally binding" is against India's position 
The US will seek to "prevent" the transfer of nuclear material and equipment from other NSG countries", if it ends nuclear ties with India. This means a return to nuclear isolation if India tests a nuclear weapon 
WHAT 
IT MEANS FOR INDIA 1 
India joins the nuclear mainstream after 34 years of nuclear isolation. 2 
India can buy reactors and nuclear fuel from any country in the world. 3 
Closer strategic ties with the US and greater role on the international stage. N-deal ensures closer Indo-US strategic ties 
    "THE content of the 123 agreement has been preserved...there were no amendments and the agreement faithfully honours the general outlines of the July 2005 statement," he said. 
    However, Mr Mulford maintained that fuel supply guarantees would not be legally binding on US companies. "In the 123 agreement, which is going to be a law, not every single commitment is binding because that can't be," he said and added that the US government cannot compel US companies to do things like guarantee fuel supplies. On the riders, he said, "if you have any specific questions, you should refer to the 123 agreement". 
    On a larger political canvas, the nuclear deal ensures closer strategic ties between India and the US and the promise of a more prominent role for India in South Asia. This was apparent in the Senate debate where the deal was hailed as an "important strategic diplomatic initiative" that would give the US access to another diplomatic option in a region that has emerged as the hub of terror activity from Pakistan to Afghanistan. 
    Senator Richard Lugar, a strong supporter of the nuclear deal, highlighted the 'long-term outlook' of signing the nuclear deal with a nation that " will exert increasing influence on the world stage". "This is one of the most important strategic diplomatic initiatives undertaken in the last decade. By concluding this pact, the US has embraced a long-term outlook that will give us new diplomatic options and improve global stability," he said. 
    Senator Christopher Dodd said, "There are compelling geopolitical reasons to move forward in this relationship." And this compelling reason could be China with its economic and political clout. 
    On a commercial angle, the deal translates into foreign investment for India in the sector and the entry of private firms into the domestic civilian nuclear sector. NPCIL has already held preliminary dialogue with French, American and Russian firms. 
    The US expects to be a major player. "As President Bush said to Prime Minister Manmohan Singh, we want to participate and our companies are at the top of the technology ladder. But we realise we have to compete. There will be economic benefits," Mr Mulford said. Estimates on the kind of business that is likely to be generated by the nuclear deal range up to $100 billion for the next 10 years.