The Hindu Business Line : A new fusion

COMING AS IT does on top of the Defence Framework Agreement signed by the two countries, the joint statement issued during the Prime Minister, Dr Manmohan Singh's visit to the US may perhaps reinforce a perception that New Delhi and Washington are embarked on a strategic partnership in global affairs. The statement actually opens with the declaration that the US President, Mr George Bush, and Dr Singh have tried "to transform the relationship between their two countries and establish a global partnership" which would be directed towards promoting "stability, democracy, prosperity and peace throughout the world". In his address to the US Congress, Dr Singh said that partnerships could be based on principle and pragmatism, and that in this case the two equally.

As the joint statement shows, the `principle' of the new partnership is well reflected in the commitment of the two countries to "human freedom, democracy and the rule of law". There is evidence of `pragmatism' in the mutual dilution of stated and long-held positions. The US has changed its perception of India: From a gate-crasher into the nuclear club to a responsible nuclear power. Mr Bush said that he will approach American legislators to make adjustments to "US laws and policies" and also work with "friends and allies" to "adjust international regimes to enable full civil nuclear energy cooperation and trade with India. After all this might seem as a bit of a climb-down by the US as its main law against nuclear proliferation was enacted in the aftermath of Pokhran in 1974. To compound it, in the US eyes at least, it has resisted all entreaties to submit its facilities under full scope safeguards. Yet, the US has now been forced to do business with India aware of the changed realities. For India, the choice has been even more painful. Not submitting its facilities to international inspection has been an article of faith. For this adherence to principle all these years, the price has been a stunted nuclear power generation programme.

The economist in the Prime Minister must know that power reforms have to be woven into the existing structure of subsidised supply to select consumers. He would also know that this must be done without undermining the States' fiscal position. Only through a massive increase in generation capacity and defraying the subsidy across a vastly higher base of electricity consumption can the burden be sustained. With alternative sources of energy such as coal or natural gas posing their own problems, the case for nuclear energy becomes compelling. Despite all the talk about `self-sufficiency' by the atomic energy establishment, the harsh reality is that the country is nowhere near scaling up its nuclear power generation to a level that can alleviate crippling power shortages. The choice before the public, quite simply, is this: Should it settle for energy shortages or run the risk of diluting its capacity for setting up a credible nuclear deterrence? The Prime Minister thinks that the former is a less acceptable trade-off. The nation has to say where it stands.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wrinkles that need ironing out

A new fusion

Sticking-plaster attitude that gives law additional layers of complexity

The Eastern shift in Europe — India, China have much to gain from trade with new EU members

Monetary Policy making — Transparency under the scanner

Independent directors, key to corporate governance

Power of small shareholders

Don't be ignorant of the `stagnant laws that aren't toothless'

Unnecessary expenditure

India-US talks