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From: The Sharekhan Research Team [mailto:marketwatch
Sent: 30 July 2008 16:38
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated July 30, 2008
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Nuclear Agreement between India - USA
Here follows the commercial & technical aspects relating to this Agreement
What is 123 Agreement?
This is called 123 Agreement because this comes under USA's Atomic Power Act Section 123.
Let's see how India's (Indians?) Sovereinty & Independence are pledged..
(1) After this Agreement USA will supply all fuel, machinery / equipment & technology to India for producing Nuclear Power.
(2) India currently produces power from 22 Nuclear Power Plants. It's a top secret as of now that from where which is produced, how much is produced, where it is
supplied, what research is being done with that, etc. But... if we sign this Agreement, we have to disclose these secrets and also agree to 14 of our Nuclear Power Plants to be under the scanner of International Atomic Power Organisation.
(3) The fuel utilised to produce Atomic Power can be recycled for reuse and this recycling plant will also be under the direct supervision of IAPO.
If India does nuclear test, this agreement gets cancelled. But not so easy!!
* USA will take back all the machinery / equipments / technology supplied to India thus far.
* Those 14 plants will continue to be under scanner irrespective of the status of the agreement.
* On the other hand, if any of the commitments given by USA is breached by them, then there is no clause for cancelling this agreement.
The agreement is apparently like this... USA can either hug India or slap India. India will not ask why are we hugged or why are we slapped.
On the other hand, India cannot hug or slap USA for breach of agreement.
This is only in its capsule form so that it is easy to read and digest.
Subject: India Pledged.... Part 2
Requirement of Power
The most important requirement for India's Economic Growth in the coming years will be the power & infrastructure. The argument put forth favouring the 123 Agreement says that we need Nuclear Power Production to be increased to meet the demand.
Power Production in India
Presently following are the figures:
Thermal Power 66%
Hydel Power 26%
Solar & Wind Power 5% - Presently Rs.600 Crores are spent for producing this power.
Nuclear Power 3% - If this is to be increased to 6%, it requires additional Rs.50,000 Crores.
Naturally it will be wise to increase other 3 modes of power production rather than the expensive & dangerous Nuclear Power.
Why dangerous?
Whether power is produced or Bomb is produced, using Atomic power without spoiling the infrastructure and without allowing the radiation is always under threat. Moreover preserving the wastes coming out of Atomic Power Plants is expensive & unsafe. There was an accident in Three Miles Island in USA. To close this plant nearly USD 200 Crores spent with tons & tons of concrete but yet to be fully closed. In an another accident at Soviet Union's Serbia Plant, even the next generation children are affected due to the radiation. It will be very very expensive to defuse & close down an Atomic Power Plant than its construction cost.
URANIUM
We used to import Uranium from various other countries. After the Pokhran Test, we are not getting it. To augment the supply, we need to sign the 123 Agreement to get Uranium from USA. But we will have to declare to USA from which power plant India takes raw material for producing Atom Bomb. Other study reveals that Uranium is available in India in plenty. Only hurdle is the acquisition of land. To produce Atomic Power & Bomb in the next 40 years, the requirement of Uranium is 25,000 MT whereas the availability is 78,000 MT across India.
PLUTONIUM
Presently 35% of Plutonium is used to produce Atomic Bombs. After signing the Agreement, we will be allowed to use only 10%. Signing the agreement will enable them to restrict the usage of our natural resources!! That is though you are capable of cooking & eating 10 idlis as your breakfast, you are allowed only 3 idlis henceforth.
THORIUM
As told by Dr.APJ Abdul Kalam, we have abundant Thorium. In fact we are the 2nd largest producer of Thorium next only to Australia. India has to explore this further for producing power. For your information, in South India - particularly around Kanyakumari, the availability of Thorium is abundant.
INDIA-IRAN-CHINA
USA does not like the amicable relationship between India-Iran and also India-China. If India-China relationship gets stronger, then both these can rule the Eastern Part of the Globe, which USA wants to break as per the old divide & rule.
By signing this agreement, USA wants India to depend on it for producing power which is going to be a crucial factor in future. There is a talk of bringing Natural Gas from Iran to India with a big pipeline project. USA doesn't like this proposal.
France
France has got 56 Nuclear Power stations producing 73% of the country's total power requirement. They are catching up the problem of eliminating the wastes / emissions from out of those plants at the same time increase the power production capacity. Government of France is now thinking how to reduce the power consumption in the country.
Conclusion
In view of the above danger, rather than signing the agreement and pledging India to USA, it will be prudent to increase the Solar & Wind Energy and more importantly Hyder Power Production can be increased by linking all rivers across India and by constructing DAMS.
The whole process of this Agreement started in the year 2005 when Manmohan visited USA. In a span of just 2 years a major decision of signing this agreement has taken place with political motive. On the contrary, neither this Government nor any other earlier Central Government could not amend the Constitution thereby nationalise the rivers across the country thereby effectively utilise the water resources for both Agriculture purpose and producing Hydel Power. What an irony?!!
Now lets decide whether the Nuclear Deal is good or bad.. Wait.. Who are we to decide?!!
