Japan a hurdle facing India-US nuclear deal?
Fri, 24 Jul 2009 22:56:12 GMT

PRESSTV
New Delhi will have to first enter into a nuclear cooperation agreement with Tokyo if it wants the India-US nuclear deal to go through, a report says.

US Westinghouse, a subsidiary of Japan's Toshiba Corp., and US General Electric having a strategic partnership with Hitachi to jointly execute nuclear energy projects worldwide, are the companies to engage in India's nuclear business.

But the big hurdle these two US giants are now facing is that they have to convince their Japanese partners and get approval to do business with India.

Analysts say that New Delhi may be forced to first sign a nuclear deal with Tokyo, adding to the multiple policy and regulation hurdles that have already delayed commercial implementation of the India-US pact.

A New Delhi-based independent think tank, ImagIndia Institute, echoed a similar opinion adding it was a 'significant worry' for Westinghouse and GE to do business in India.

ImagIndia president, Robinder Sachdev, said, "In case such required clearances are not forthcoming from Tokyo, the ability of GE and Westinghouse to engage in India's nuclear business may be severely handicapped."

Already, the deal, which could unlock an estimated USD 27 billion nuclear market in India over the next 15 years, has been bogged down by issues like accident liability protection for US firms and fuel reprocessing technology transfer.

There also seems to be little clarity in India on what the actual policy requirements for the nuclear deal are.