India and Australia ink nuclear deal. Photo: AP
A landmark civil nuclear deal inked between India and Australia here on Friday will allow the supply of much-needed uranium for the country’s nuclear plants.
In yet another indication of the deepening strategic ties between New Delhi and Canberra, the two have also decided to hold their first bilateral naval exercise in 2015 while also resolving to increase cooperation in defence and security.
The nuclear deal, signed following a meeting between Prime Minister Narendra Modi and visiting Australian PM Tony Abbott, is of great import for India. The uranium will be used to help generate power to meet the country’s growing needs for energy and help it move towards the goal of achieving energy security.
In his remarks after the inking of the nuclear pact, Mr Modi described it as “a historic milestone in our relationship”. The PM also said it was “a reflection of a new level of mutual trust and confidence in our relationship”.
Mr Modi also said the deal will “support India’s efforts to fuel its growth with clean energy and minimise the carbon footprint of its growth”. As part of their growing cooperation in the energy sector, the two sides have also resolved to deepen their cooperation on energy security through a ministerial-level dialogue and a strategic partnership on energy.
The PM’s remarks indicating new trust were not without reason for Australia has decided to supply uranium to India even though New Delhi is not a signatory to the NPT (Nuclear Non-Proliferation Treaty).
Australia has about 40 per cent of the world’s uranium reserves and exports nearly 7,000 tonnes of yellow cake annually. India and Australia had commenced negotiations for the sale of uranium in early 2012.
The agreement will promote cooperation in peaceful uses of nuclear energy. It recognises India’s commitment to use of nuclear energy with a view to achieving sustainable development and strengthening energy security.
The pact also sees Australia playing the role of a long-term, reliable supplier of uranium to India and for providing yellow cake for production of radio isotopes.
Friday’s pact is significant given that Indian nuclear plants generate around 4,680 MW of electricity, of which 2,840 MW is from indigenous uranium and 1,840 MW from imported fuel.
The Australian PM said Australia “trusts India to do the right thing (in the nuclear area) as it has been doing in other areas” and his country was happy to help in meeting the energy demands of 1.2 billion Indians.
The two PMs directed negotiators to conclude the administrative arrangements pertaining to the civil nuclear pact at an early date. According to officials, it may take up to two years for India to receive the first consignment of uranium from Australia.
The civil nuclear deal was among the four pacts signed on Friday, the others being on Cooperation in Technical Vocational Education and Training, Cooperation in Water Resources Management and an MoU on cooperation in sports.
The PM also said there has not been any prime ministerial visit from India to Australia since 1986. “I have accepted Prime Minister Abbott’s invitation to pay a bilateral visit to Australia after the G-20 Summit,” he stated.