US trade mission arriving on N-business in Dec

Says it is keen to explore the $150 billion nuke bazaar

NEW YORK: The US on Wednesday reiterated president George Bush’s pledge of providing “reliable fuel” supplies for Indian civilian reactors while announcing a nuclear trade mission to India, in December, to explore business opportunities pegged at $150 billion (Rs 7.3 cr) over the next 30 years.

US commerce secretary Carlos Gutierrez noted that the US-India Business Council (USIBC) would spearhead the mission to scope out India’s growing market for civilian nuclear technologies.

“I’m pleased to announce that the commerce department has certified the US-India Business Council for a civil nuclear trade mission to India this December,” Gutierrrez told the day-long Green India Summit jointly organised by USIBC and the Confederation of Indian Industry.

“As president Bush said, India will have a reliable fuel supply for its civilian reactors, which will meet energy demands and reduce dependence on fossil fuels,” Gutierrez added.  “US companies are eager to contribute to India’s developing nuclear power sector. However, private sector firms, both US and Indian, require nuclear liability protection in order to do business,” Gutierrez said urging India to “draft and ratify a domestic law consistent with the Convention on Supplementary Compensation (CSC) for Nuclear Damage.”

India, last month, wrote a letter of intent to sign up to the convention. Top Washington lawyer Omer Brown, who represents GE Energy among other nuclear suppliers on the liability issue, told DNA that the Indian parliament will have to approve the CSC like any other treaty.

“It makes the operators responsible. It would benefit both Indian and US companies by bringing India in line with the international standards of addressing nuclear facility accident claims. It is the kind of protection that companies look for when they decide to invest in countries,” Brown said.

India’s parliament will have to pass implementing legislation that identifies a funding source for India’s treaty obligation. Signatories to the CSC treaty have created a global pool of money to pay victims of nuclear disasters, and since India’s still not a party to it; any American-built reactor would have to shoulder their own civil liabilities.

“In addition to providing supplemental international funds to pay victims, the treaty would keep liability in the country where the accident occurs. This would help protect US companies from lawsuits. If India does not sign the CSC treaty, a US company could potentially risk the entire company in doing business with it,” Brown said.

On a separate note, Gutierrez said, “Clean energy technologies have moved to the forefront of India’s energy infrastructure and investment opportunities. And the US is committed to being India’s partner in providing clean energy.”

“Trade is critical and continues to be the bright spot of the US economy,” Gutierrez said. “These are challenging economic times. And like other countries throughout the world, India and the next US administration will have to set policy for the future.”

Naina Lal Kidwai, the country head of HSBC (India), told the meeting that India was on its way to mobilise as much as a half trillion dollars in infrastructure investment over the next five years to develop its modern infrastructure despite the global financial turmoil.