Despite Historic Pact, U.S. Firms Are Hampered in Setting Up Reactors in India
By Rama Lakshmi
Washington Post Foreign Service
Wednesday, January 21, 2009; Page A06

NEW DELHI -- It took three years of diplomatic wrangling to get a controversial agreement signed late last year to allow India to participate in global civilian nuclear trade, but U.S. business executives now say there are more hurdles to overcome before they can start setting up reactors and selling fuel to India.

The largest-ever business delegation from the United States met with high-level Indian officials, lawmakers and nuclear executives last week and pored over the fine print in the historic agreement . Some executives said it would take at least two to three years to jump through the bureaucratic hoops, complete the commercial negotiations and sign the contracts.

"The passage of the 123 Agreement into law was a herculean task," said Ted Jones, director of energy, environment and enterprise with the visiting U.S.-India Business Council, referring to the nuclear accord. "But now we are seeing how much work remains to be done, and the challenge may be equally great on the U.S. side. We thought we would get down to business sooner."

Many of the delays involve U.S. nuclear companies that must comply with stringent U.S. laws that prevent them from sharing details of their technology with Indian partners before bureaucratic approval. Another is India's insistence that the United States allow it the right to reprocess spent fuel before American companies can sell reactors and fuel to India. Additionally, India needs to pass laws covering liability and patent protection before U.S. companies can do business. Rival companies from France and Russia, which do not have such restrictions, appear to be racing ahead, executives said.
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