Focus Turns to Congress to Enable U.S.-India Civil Nuclear Cooperation
WASHINGTON, Sept. 17 /PRNewswire-USNewswire/ -- With the financial markets in turmoil, a historic turning point in international relations occurred almost unnoticed last weekend when the entire 45-Nation Nuclear Suppliers Group (NSG) unanimously agreed to change its rules, clearing way for civil nuclear trade and commerce with India - the world's largest free-market democracy. This NSG waiver opens a bonanza of opportunity for nuclear companies, and sets India on a course where it can achieve energy security, while protecting the global environment.
The U.S.-India Business Council (USIBC), the largest trade group in Washington comprised of more than 300 U.S. companies with major investments in India, has pulled out all stops in support of U.S.-India civil nuclear cooperation on September 6th when the unanimous NSG waiver was announced. Earlier, in August, the U.N.'s International Atomic Energy Agency (IAEA) approved a landmark "safeguards agreement" specific to India's civil nuclear program. "With the IAEA approving a safeguards agreement for India, and with the NSG endorsement last weekend opening India's civil nuclear trade with the world, our member-companies strongly feel that all nuclear non-proliferation issues have now effectively been addressed," said Ron Somers, President of USIBC. "It is important that our American companies have the opportunity to participate in India's nuclear build-out, valued at more than $100 billion, with the potential of creating hundreds of thousands of high-end American jobs, providing a boost to a flagging U.S. economy."
"Let's remember that the U.S. Congress passed the Hyde Act in 2006 by an overwhelming bipartisan majority, enabling U.S. companies to engage in civil nuclear trade with India, but with one catch: India must first achieve IAEA clearance and NSG approval," Somers said. "These steps are now completed," Somers said. "It's now time for Congress to act."
"NSG clearance permits every country but the United States to compete for a share of India's nuclear pie until our U.S. Congress ratifies the Hyde Act - making it law," Somers said. "Russian and French nuclear companies are already swooping in to participate in India's vast civil nuclear build-out. Our companies are sitting on our hands watching hopelessly from the sidelines," said Ron Somers.
"USIBC is asking our Congress in this session to ratify the so-called 123 Agreement, which will enable full-scale U.S.-India civil nuclear cooperation. Companies like GE, Westinghouse, Babcock & Wilcox, United States Enrichment Corporation, Bechtel, Parsons, and Fluor all stand to win contracts worth billions - for years to come. India's first civil nuclear power plant was built in 1961 utilizing GE technology. "The Indians favor U.S. technology, and seek U.S.-India civil nuclear cooperation, but cannot wait on our U.S. Congress forever," Somers said. On July 22 the Indian Parliament voted in favor of Indian Prime Minister Singh's determined effort to pursue India's civil nuclear cooperation with the United States. The "trust vote" was historic by every measure.
India's billion-person economy is energy-starved, with India consuming only a fraction of the international average; U.S. energy consumption is 14,000 kilowatt hours (kwh) per person per year, while India's consumption is only 600 kwh. The Indian economy is powering ahead at a stunning 8% growth rate, purchasing U.S. imports and keeping the U.S. economy and other economies above water. Boeing sold more than $20 billion in civilian aircraft to India over the last two years. Caterpillar has a backlog of orders for its heavy equipment. IBM has more than 75,000 people on the ground in India - tapping India's talent pool. "India wants civil nuclear trade with U.S. companies, but cannot be expected to wait forever. Presently, the country is generating only 3% of its energy by nuclear power, yet is importing more than 75% of its hydrocarbons. Their economy is being ravaged by the high cost of oil," Somers pointed out.
"India is adding 100,000 MW of generating capacity to its electricity grid over the next five years, and requires 300,000 MW by 2020. A significant portion of this mix must be nuclear," Somers maintained. "Even if India increases its nuclear energy mix to a modest 10%, the opportunity will be worth more than $100 billion, spurring a renaissance in the U.S. civil nuclear industry, creating as many as 200,000 high-end U.S. jobs. Our elected officials need to appreciate these facts," Somers said.
The U.S.-India Business Council has retained the Washington heavyweights Patton Boggs LLP and Stonebridge International to help convey U.S. Industry's message to members on Capitol Hill. "Meetings with the Hill began in earnest as soon as we heard of NSG clearance," Somers added. "An advertising campaign has also been launched to raise public awareness about the benefits stemming from India's civil nuclear opening: emphasizing the themes of partnership between the world's two largest democracies, job creation and business opportunity, and the attributes India's civil nuclear program by protecting the global environment. "Nuclear power is non carbon-emitting and therefore does not cause global warming. The challenge is to make certain that nuclear power is generated safely. India's nuclear program will be much safer with U.S. company
involvement. Our elected officials need to hear this," Somers said.
"The bottom line is that the Indians have completed all that has been asked of them by the Hyde Act; Congressional ratification is all that is keeping U.S. companies from participating in this historic opportunity," Somers added.
The U.S.-India Business Council (USIBC), formed in 1975 under the aegis of the U.S. Chamber of Commerce, is the premier business advocacy organization representing 300 of the largest U.S. companies investing in India with a goal of deepening U.S.-India ties.
SOURCE U.S.-India Business Council
International News / Press Release source: PR Newswire
Copyright PR Newswire. All Rights Reserved.