India, US announce ‘breakthrough’ in N-deal

New Delhi: India and the United States reached an agreement on Sunday to break a deadlock that has been stalling the implementation of a landmark civilian nuclear deal between the two largest democracies.

Prime Minister Narendra Modi said India was moving towards commercial cooperation on civil nuclear trade with the United States, six years after the two sides signed the deal. "I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our laws (and) international legal obligations," Modi said at a joint news conference on the first day of a visit by US President Barack Obama to India to establish an enduring strategic partnership.

India and the United States signed the civilian nuclear deal in 2008, but differences remained over an Indian nuclear liability law that makes equipment suppliers ultimately responsible for an accident. Countries like France and US have asked India to follow global norms under which the primary liability lies with the operator.

The contours of the operationalisation of the nuclear deal, which has been in limbo for the last more than six years, were not immediately available, although President Barack Obama described it as a "breakthrough".

“Today we achieved a breakthrough understanding on two issues that were holding up our ability to advance our civil nuclear cooperation and we are committed to moving towards full implementation," said Obama at the news conference.

"This is an important step that shows how we can work together to elevate our relationship,” he said.

The US has reportedly withdrawn a demand to track the nuclear material it supplies to India, which New Delhi had said was intrusive. Since all the nuclear power plants in the country are run by the government-owned Nuclear Power Corporation of India Ltd (NPCIL), following international norms will mean the government would have to pay heavy damages in case of an accident.

New Delhi had ruled out changes in its 2010-liability legislation that has choked off American investment, but offered to set up an insurance pool to indemnify companies that build reactors in the country against liability in case of a nuclear accident, as a way around the law.

Under the plan readied by state-run reinsurer GIC Re, insurance would be bought by the companies contracted to build the nuclear reactors who would then recoup the cost by charging more for their services.

Alternatively, the NPCIL would take out insurance on behalf of these companies. It is understood that the deadlock over the nuclear deal was done away with after one-on-one talks between Modi and Obama over tea.

Both leaders held extensive discussions on enhancing cooperation in crucial areas of defence, trade and commerce and climate change after lunch at the Hyderabad House.

After the official discussions followed by lunch, Modi and Obama went for a short stroll in the manicured gardens there.

After a busy day, Modi and Obama appeared before the press in the afternoon. Obama started his address with a 'namaskar' and stressed trade as well as clean energy. Modi, on his part, termed the ties between the two nations a "natural global partnership". The PM also talked about exploring cooperation in advance defence technologies.

Chai pe charcha

New Delhi: The concept of ‘Chai pe Charcha’ was taken to a new height at Hyderabad House in New Delhi on Sunday when Prime Minister Narendra Modi served the brew to US President Barack Obama from a silver teapot on the verdant green lawns. The two leaders stepped out into the garden of the state guest house after a working lunch and leisurely strolled along the red sandstone pathways, talking animatedly and gesticulating for effect.