I thought of updating my previous post on nuclear deal. 2 years ago, I had wondered why USA signed this deal. After all the terms of the deal (atleast those revealed to the public) seems to be lopsided in benefiting India. Even the gains made by the rest of the world because of opening up of india as a nuclear market seems to benefit Austraila, Russia and France much more than anybody else.
When India came to the nuclear negotiation table, it had 3 priorities:
1. Nuclear Fuel: India has excess of Thorium, but most of its nuclear program is Uranium based. The shortage of nuclear fuel had reached critical stage when the deal was signed.
2. Electricity: India is already short of electricity and as per India Core every 1% rise in India GDP needs 3% rise in electricity consumption.
3. Technology: Without being disrespectful to Indian Scientists and Engineers, there is always a lot to be gained by exposure and access to technology from a distant land. Plus one cannot ignore india’s skills in reverse engineering.
Areva recently offered not to install turnkey nuclear reactors but is also offering to sell its stake in Uranium mines of Africa.
So basically india is getting all it wants .. and that too at competitive prices.