The Economic Times
N-deal to create thousands of jobs in US 9 Sep, 2008, 0334 hrs IST, ET Bureau
NEW DELHI: The US is looking at reviving its flagging nuclear power industry and generating thousands of jobs through the nuclear deal. In its communication to the US Congress, the state department had talked about major opportunities from India's plans to import at least eight 1,000 mw power reactors by 2012.
The US assessment is that even if American companies were to win contracts for just two reactors, thousands of jobs will be created in America. "Studies suggest that if American vendors win just two of these reactor contracts, it could add 3,000-5,000 direct jobs and 10,000-15,000 indirect jobs in the US," said the note written by Jeffrey T Bergner, assistant secretary in the legislative affairs section of the State department, to the chairman of the House Committee on Foreign Affairs.
Estimates on the kind of business that is likely to be generated by the nuclear deal range up to $100 billion for the next 10 years. But the note clearly sketches out the entire commercial benefits of ratifying the 123 agreement and entering into nuclear cooperation with India At present India has 17 operating power reactors with seven under construction, including Kudankulam, Kaiga and Rajasthan Atomic Project. ``Meeting this ramp up in demand for civil nuclear reactors, technology, fuel ad support services holds the promise of opening new market for the United States,'' the note said.
The US government also hopes that the nuclear deal will revive the flagging American nuclear power industry. "In addition, participation in India's market will help make the American nuclear power industry globally competitive, thereby benefiting our own domestic nuclear power sector... The access to Indian nuclear infrastructure will allow US companies to build reactors more competitively here and in the rest of the world - not just India, the note said. The fact remains that the last successful order for a US commercial nuclear plant was in 1973 and that the unit entered production in 1996.
For American companies, the Indian market comes as a golden opportunity. American, French and Russian companies have already been surveying the Indian market in anticipation of the completion of the political process of operationalising the deal. In December 2006, around 15 nuclear related US firms including General Electric and Westinghouse participated in a delegation that was led by the US commerce department. While US companies still need congressional approval before they can start bidding for contracts, French and Russian companies can start as soon as their governments sign a bilateral agreement with the Indian government.
With these kind of stakes in the nuclear deal, the US is now keen to ensure that other countries don't reap the benefits of the US led initiative ahead of American companies, especially if the US Congress is unable to pass the 123 agreement in the current session. "We have talked to the Indian government about not disadvantaging American companies and I think they recognise and appreciate American leadership on this issue. But obviously, the best thing would be to get it through Congress" secretary of state Condoleezza Rice was quoted as saying.
"We will have to see. The congressional calendar is short, but the main thing is the international work is now done. I certainly hope to get it through because it's also a big step for the US-India relationship,'' Ms Rice told reporters traveling with her in Algeria.
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