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First meeting of the India-U.S. Contact Group on Civil Nuclear Cooperation

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First meeting of the India-U.S. Contact Group on Civil Nuclear Cooperation
December 17, 2014

The first meeting of the India-U.S. Contact Group on civil nuclear cooperation took place in New Delhi on December 16-17, 2014. The Contact Group was established pursuant to the decision of the Indian Prime Minister and the U.S. President as articulated in the Joint Statement of September 30, 2014 during Prime Minister Modi’s visit to the U.S., with a view to advance the implementation of the India-U.S. civil nuclear cooperation.

As mandated by the two leaders, the Contact Group, which comprised relevant experts from both sides, held detailed discussions on a range of implementation issues, including administrative issues, liability, technical issues and licensing to facilitate the establishment of U.S.-designed nuclear power plants in India. The discussions were positive and forward-looking and included representatives of nuclear industries from both sides – the Nuclear Power Corporation of India (NPCIL) from the Indian side and Westinghouse and GE-Hitachi from the U.S. side.

The two sides agreed to reconvene in early January 2015 to take the discussions forward.
 
India, US discuss ways to operationalise nuclear deal - Economic Times

NEW DELHI: Indian and American experts today held detailed discussions on a range of implementation issues, including administrative, liability, technical and licensing matters to advance the operationalisation of Indo-US civil nuclear cooperation that has been in limbo for past 9 years.

Pursuant to the joint decision by Prime Minister Narendra Modi and US President Barack Obama during Modi's visit to the US in September, the first meeting of the India-US Contact Group, comprising relevant experts from both sides, on civil nuclear cooperation took place here, External Affairs Ministry said.

"As mandated by the two leaders, the Group held detailed discussions on a range of implementation issues, including administrative issues, liability, technical issues and licensing to facilitate the establishment of US-designed nuclear power plants in India.

"The discussions were positive and forward-looking and included representatives of nuclear industries from both sides - the Nuclear Power Corporation of India (NPCIL) from the Indian side and Westinghouse and GE-Hitachi from the US side," the ministry said.

From the Indian side, the inter-agency Contact Group had representatives from Department of Atomic Energy, Ministry of External Affairs and Finance Ministry.

During their two-day meeting, the Group agreed to reconvene in early January 2015 to take the discussions forward. Significantly, the meetings come ahead of Obama's visit to India in January when he will attend the Republic Day parade as the Chief Guest.

Modi and Obama while taking note of the delay had reaffirmed their commitment during their meeting in Washington in September to "implement fully" the US-India civil nuclear cooperation agreement that would facilitate installation of American-origin nuclear reactors in India.

The India-US nuclear deal concluded between the previous Manmohan Singh government and the Bush Administration and has been stalled because of issues relating to liability laws.

India has ruled out diluting the Civil Liability for Nuclear Damage Act and hoped a solution to the stalemate caused by foreign companies not agreeing to two of its clauses will be found within the framework of the legislation. The US has wished to see that India was aligned with the International Convention on Supplementary Compensation for Nuclear Damage.
 
PM Modi to seek US President Barack Obama's help for entry in Nuclear Suppliers Group - The Economic Times

By Dipanjan Roy Chaudhury, ET Bureau | 2 Jan, 2015, 03.39AM IST

New Delhi: Prime Minister Narendra Modi will utilise US President Barack Obama's India visit later this month to seek unequivocal American support to override opposition from certain European nations and China for membership of the coveted Nuclear Suppliers Group (NSG) in near future.

Senior government officials told ET that entering NSG is one of the top foreign policy priorities for the Modi government, as reflected in the joint statement issued after the Modi-Obama meet in Washington last September.

Key members of NSG including USA, Russia, France, Australia and Japan have been supportive of India's entry into the select club. However, certain European nations and global non-proliferation lobbies are opposing India's entry, officials said, adding that China could also support those who are tying India's membership with either a NSG membership for Pakistan or grant of clean waiver by NSG to Pakistan on the lines of the one granted to India in 2008.

The clean waiver by NSG for India in September 2008 paved the way for several civilian nuclear pacts that the country signed with the USA, France, Russia, Kazakhstan, Mongolia, Namibia, Canada, UK, Argentina and Australia in the subsequent years for supply of reactors, uranium, sharing of know-how and nuclear waste management.

During Obama's forthcoming visit, Modi will try to impress upon him that he should influence naysayers to lift their objections, officials said, adding that in 2008 the US had pulled its weight behind India and got a few dissenting NSG members to grant India a clean waiver.

The Modi government wants the US to act similarly when India applies for a membership. "India's non-proliferation track record has been exemplary. But India does not want to apply for the membership until it is certain of support from all NSG members. It has harmonised its export control regimes with NSG and Missile Technology Control Regime (MTCR) that would facilitate NSG membership," said an expert, who did not wish to be named.

There have been suggestions from some quarters that India first become a member of the other non-proliferation regimes like Australia Group and Wassenaar Arrangement ahead of applying for NSG membership but the government wants to enter NSG first.

NSG was created in 1975 as a reaction to India's first nuclear test in 1974 and it has 48 members at present. The members have voluntarily agreed to coordinate their export controls governing transfers of civilian nuclear material and nuclear-related equipment and technology to non-nuclear-weapon states.
 
US reactors are proposed for nuclear parks at Chaya Mithi Virdi (Gujarat) and Kovada (Andhra Pradesh). The offered models are ESBWR and ABWR of capacities in range of 1,100 MWe to 1,400 MWe per reactor. If both sites are fully developed, each will house 6 reactors.
We can hope to see some kind of preliminary agreement during President Obama's visit later this month. Both nations are keen to sign a deal quickly.
 
US reactors are proposed for nuclear parks at Chaya Mithi Virdi (Gujarat) and Kovada (Andhra Pradesh). The offered models are ESBWR and ABWR of capacities in range of 1,100 MWe to 1,400 MWe per reactor. If both sites are fully developed, each will house 6 reactors.
We can hope to see some kind of preliminary agreement during President Obama's visit later this month. Both nations are keen to sign a deal quickly.


Because of this only First meeting of the India-U.S. Contact Group on Civil Nuclear Cooperation have took place.

India seems to be doing agreements with United states, Russia and France . Once entry is done in Nuclear supplier group then things would be more good for India.
 
Because of this only First meeting of the India-U.S. Contact Group on Civil Nuclear Cooperation have took place.

India seems to be doing agreements with United states, Russia and France . Once entry is done in Nuclear supplier group then things would be more good for India.

Well membership of NSG would give India a free hand at dealing with other nations in doing civil nuclear business and while today India has signed a number of agreements with countries for supply of fuel, purchase of other equipment like Machinery, electronics, pressure vessels for N installations is still cumbersome. So for a smoother trade, India desperately wants to have a membership of NSG. Infact that is why it is a priority for NDA government.
here are 2 reactors, US is proposing for India

Mithi Virdi
ABWR-cutaway844x680.jpg

Kovada
ESBWR-cutaway_844x680.jpg
 
123 Nuclear Agreement with United States has in reality have open investment in Indian Nuclear sector and the Nuclear liability law which has been adopted in Parliament was even a good step for India. Is it true that Russians are agreed on the Nuclear liability bill, So what about France and United states ?
 
123 Nuclear Agreement with United States has in reality have open investment in Indian Nuclear sector and the Nuclear liability law which has been adopted in Parliament was even a good step for India. Is it true that Russians are agreed on the Nuclear liability bill, So what about France and United states ?

Well nobody including Indian industry is happy with Liability bill in its present form. It allows government to levy huge penalty for extremely long duration of operation. Suppliers want a cap on both value and time of this liability (~ Rs 1,500 crores max for 10 years).
Russia recently signed agreement for KKNPP 3&4 (PWR 1000 MWe) and while they accepted liability clause, the price per reactor was increased to USD 3 billion, almost double that of KKNPP 1&2 units. They have apparently added the cost of liability in their bid.
France is negotiating for Jaitapur NPP (6 units of EPR II, 1650 Mwe each) but the bone of contention remains the liability clause.
Looks like when Obama visits India this time around, we will get to see a clearer picture of Modi governments intent on the matter. The government is itself keen to start new N power projects, especially in light of the fact that little movement is made since 123 agreement was signed long back.
Ultimately nations will sign Liability clause, but India will have to make it more realistic, in line with practice followed globally in N industry.
 
Well nobody including Indian industry is happy with Liability bill in its present form. It allows government to levy huge penalty for extremely long duration of operation. Suppliers want a cap on both value and time of this liability (~ Rs 1,500 crores max for 10 years).
Russia recently signed agreement for KKNPP 3&4 (PWR 1000 MWe) and while they accepted liability clause, the price per reactor was increased to USD 3 billion, almost double that of KKNPP 1&2 units. They have apparently added the cost of liability in their bid.
France is negotiating for Jaitapur NPP (6 units of EPR II, 1650 Mwe each) but the bone of contention remains the liability clause.
Looks like when Obama visits India this time around, we will get to see a clearer picture of Modi governments intent on the matter. The government is itself keen to start new N power projects, especially in light of the fact that little movement is made since 123 agreement was signed long back.
Ultimately nations will sign Liability clause, but India will have to make it more realistic, in line with practice followed globally in N industry.

I am talking about Civil Liability for Nuclear Damage Act and India is putting up indigenous nuclear plants by its own, here its about safety of Indian people. Suppliers need to take responsibility and in case of any negligence it would affect the indian people . Don't mind , we should remember Bhopal gas tragedy .

Article 17(b) of the liability bill states that the operator of an Indian nuclear facility has a “right of recourse” from the “supplier of the material, equipment or services” in the event of a “nuclear incident” resulting from the supplier’s “willful act or gross negligence.” The government-owned Nuclear Power Corporation of India Ltd. (NPCIL) currently is the only operator of nuclear power plants in India.

The liability bill also intends to “ensure clarity of liability and the requirement to pay compensation” to those who suffer physical or economic harm “caused by or arising out of a nuclear incident,” according to the “Statement of Objects and Reasons” attached to the text of the bill. In the event of such an incident, compensation is to be awarded by a specially appointed commissioner or by a central government commission in special cases. Article 46 clarifies that additional “proceeding
 
I am talking about Civil Liability for Nuclear Damage Act and India is putting up indigenous nuclear plants by its own, here its about safety of Indian people. Suppliers need to take responsibility and in case of any negligence it would affect the indian people . Don't mind , we should remember Bhopal gas tragedy .

Article 17(b) of the liability bill states that the operator of an Indian nuclear facility has a “right of recourse” from the “supplier of the material, equipment or services” in the event of a “nuclear incident” resulting from the supplier’s “willful act or gross negligence.” The government-owned Nuclear Power Corporation of India Ltd. (NPCIL) currently is the only operator of nuclear power plants in India.

The liability bill also intends to “ensure clarity of liability and the requirement to pay compensation” to those who suffer physical or economic harm “caused by or arising out of a nuclear incident,” according to the “Statement of Objects and Reasons” attached to the text of the bill. In the event of such an incident, compensation is to be awarded by a specially appointed commissioner or by a central government commission in special cases. Article 46 clarifies that additional “proceeding

I'm not questioning the intent of the bill, the right of government to levy penalty on faulty equipment suppliers is all justified. Safety in N industry is of paramount importance and it is important to point an amazing safety record of Indian N sector in this regard. tells that we don't take things for granted.
The problem actually is with the legal frame-work. What i mean is when such an incidence occurs and you go for putting penalty, the matter will go in court of law. Now it is sometimes very difficult and treacherously long process to prove if the issue was with equipment or with its ownership (Operation and maintenance). In each of above case liability would lie with Manufacturer and Operator respectively.
Now to understand this in similar terms, when we buy any machinery, the guarantee is for a limited period. So what we do is based on Risk and impact involved, we go for some kind of insurance.
This practice is followed for N plants internationally too.
In India too, several prominent domestic suppliers (like L&T, Godrej etc) are asking government to consider the same thing. While their products will be liable to come under liability clause, the time period of applicability of this liability has to be a defined duration of time.
To further expand the point, take an example of a company supplying some critical protection relay or an electronic card or say solenoids for some safety application. Now the commercial life of an N plant is approximately 40-45 years. The component might not last that long. Even the original supplier may not be around for that long a duration. So if something goes wrong after say 30 years with supplier no longer around, whom should have the legal responsibility of paying for the damage.
One scheme that might work here is pooling of money to generate a corpus of fund that lies with government. The money can be used to purchase insurance of amount equal to expected compensation and damage control. This will not only keep the intent of Liability clause intact and at the same time keep the suppliers load limited, which otherwise gets added to the capital cost of plant jacking up tariff rates.
 
I'm not questioning the intent of the bill, the right of government to levy penalty on faulty equipment suppliers is all justified. Safety in N industry is of paramount importance and it is important to point an amazing safety record of Indian N sector in this regard. tells that we don't take things for granted.
The problem actually is with the legal frame-work. What i mean is when such an incidence occurs and you go for putting penalty, the matter will go in court of law. Now it is sometimes very difficult and treacherously long process to prove if the issue was with equipment or with its ownership (Operation and maintenance). In each of above case liability would lie with Manufacturer and Operator respectively.
Now to understand this in similar terms, when we buy any machinery, the guarantee is for a limited period. So what we do is based on Risk and impact involved, we go for some kind of insurance.
This practice is followed for N plants internationally too.
In India too, several prominent domestic suppliers (like L&T, Godrej etc) are asking government to consider the same thing. While their products will be liable to come under liability clause, the time period of applicability of this liability has to be a defined duration of time.
To further expand the point, take an example of a company supplying some critical protection relay or an electronic card or say solenoids for some safety application. Now the commercial life of an N plant is approximately 40-45 years. The component might not last that long. Even the original supplier may not be around for that long a duration. So if something goes wrong after say 30 years with supplier no longer around, whom should have the legal responsibility of paying for the damage.
One scheme that might work here is pooling of money to generate a corpus of fund that lies with government. The money can be used to purchase insurance of amount equal to expected compensation and damage control. This will not only keep the intent of Liability clause intact and at the same time keep the suppliers load limited, which otherwise gets added to the capital cost of plant jacking up tariff rates.

Liability for Nuclear Damage Act when it was tabled in the Rajya Sabha before that only all the clauses were discussed and debated and the section which are having all the acts from Atomic Energy Act 1962, Maritime zone Act 1976, merchant shipping Act 1958, Aircraft Act 1936, Environment protection act 1986 all are drafted in the Liability for Nuclear Damage Act and its clearly stated that within 15 days of any incident it should be notified and even special drawing rights by International monetary fund as compensation.

When its comes to buying any machinery then the company have to look it by itself which has been authorized and when any company is signing agreement then that company has to give guarantee of the machinery and in case of any faulty items would be there then here the company have to do regular checkups on the machinery and spare items and then comes Nuclear fuel rods and how those fuel rods will be transported then even for that all the clauses have been addressed in that Liability bill .

When Foreign companies want to get business worth billions then they have to even look for all this and i think all the countries are going for all these agreements as Nuclear power is going to be the source of energy. We should remember Bhopal gas tragedy and how Indians have gone through that problem. India when signed 123 agreements was aware that India do have to deal with some serious international agreements.
 
Progress made in negotiations with U.S. on nuke issue: MEA - The Hindu
New Delhi, January 22, 2015


India and the U.S. negotiators have been making “progress” in trying to resolve the differences in operationalising the landmark civil nuclear deal ahead of President Barack Obama’s arrival in New Delhi on January 25 on a three-day visit, which is packed with high-voltage engagements.

Describing the three-day visit as “one of our most important diplomatic engagements in recent times”, Spokesperson in the External Affairs Ministry Syed Akbaruddin said cooperation in key areas of defence, security, counter- terrorism and the situation in India’s extended neighbourhood would be among the issues to be discussed between Mr. Obama and Prime Minister Narendra Modi.

Asked about the differences between the two sides on the nuclear deal, he said, “Our negotiators are working together in a collaborative manner in London. This is the third time the Contact Group, which was set up by the Prime Minister and the U.S. President, is meeting in last 45 days. One can see the element of effort going in the discussion on the nuclear issue, which is an extremely important issue...”

He said under the nuclear “rubric”, the Group was discussing administrative arrangements, how to actualise India’s quest for membership of Nuclear Supplier’s Group and also issues related to clarification and understanding of our nuclear liability regime.

“What is being discussed is how within the four walls of our legal framework, our legislation, we can provide assurance to our partners in the U.S. and any concerns that they may have either through their vendors or lawyers that is the discussion that is taking place right now in London,” the Spokesperson said. Significantly, the talks, which started yesterday, have been extended by a day on Thursday.

Noting that “progress has been made” during the previous negotiations, the Spokesperson said, India was looking forward to “effectively” work with the U.S. in the “extremely important” nuclear field.

The Indian liability law holds the suppliers directly liable in case of a nuclear accident while countries like France and the U.S. have asked India to follow global norms under which the primary liability is with the operator.

Since all the nuclear power plants in the country are run by the government-owned Nuclear Power Corporation of India Ltd., following international norms will mean the government would have to pay for the damages in case of an accident.

Another contentious clause in the liability law was unlimited liability for which international companies will find it difficult to get insurers.

The two sides are working hard to have “excellent” outcomes during the visit of Mr. Obama, who will have a tight schedule including talks with Mr. Modi, attending Republic Day parade as the Chief Guest, meeting with business leaders, joint radio talk with Mr. Modi and a quick visit to Agra to see the iconic Taj Mahal.

Asked about the criticism that Mr. Obama’s visit was seen as “just to see parade and visit the Taj”, the Spokesperson said, .

“From our perspective, the U.S. is a key partner for capital, technology, knowledge and skills in our development effort as also potentially important source of clean energy technology and hydrocarbons. It is an important partner in areas like defence technology and counter-terrorism.”

“U.S. is also an important factor in our space security and cyber security and a key interlocutor in adjustments to the global security and economic architecture including reforms of the U.N. Security Council,” he said and also described it as a partner in the quest for a rule based, open international trading and economic order.

It is an important partner in India’s efforts to seek peace and stability in our extended neighbourhood and globally, the Spokesperson added.

Giving details of Mr. Obama’s schedule, he said apart from talks with Mr. Modi, and attending Republic Day function, the U.S. President, along with Mr. Modi, will address business leaders and also hold joint radio talk with the Prime Minister.

Mr. Obama, who will accompanied by his wife Michelle, will also visit Taj Mahal in Agra before their return from here.

The Spokesperson also noted that there have been nine India-U.S. bilateral dialogues since September and, in addition, there have been eight meetings relating to defence and security in such areas as cyber, border management, counter- improvised explosive devices, defence technology, trade initiatives and global entry programme.

“Also on the economic and commercial fronts, there have been three meetings on matters such as smart cities, financial regulations, etc. In the science and technology sphere, there have been three meetings on diverse subjects, including vaccination programme, scientific research collaboration on monsoon. There have been 10 MOUs signed in areas such as space, renewable energy, skill development and urban development to name a few,” he said.

“Looking ahead, the potential for growth in our relationship is strong,” Mr. Akbaruddin asserted.
 
Indo-US nuke deal: India may throw in sovereign guarantee | Zee News
Last Updated: Friday, January 23, 2015 - 19:47

London: Seeking to remove the hurdles in operationalising the Indo-US nuclear deal ahead of US President Barack Obama's visit beginning Sunday, the Indian government may throw-in sovereign guarantee to address the concerns of foreign suppliers over the nuclear liability law.


Another option, which was being explored, was issuing of catastrophe bonds or a blend of catastrophe bond and sovereign guarantee, government sources said, adding that the idea of catastrophe bond was suggested by the Insurance Regulatory Development Authority (IRDA).

Government sources said, the Department of Atomic Energy (DAE) and Ministry of Finance has been working on the issue on "day-to-day basis" to end the deadlock between India and the US over the liability clause under the Civil Liability Nuclear Damage (CLND) Act 2010, which was one of the issues discussed between the officials of India and the US during their meeting here which concluded late last night.

According to the sources, progress was made during the two-day meeting of Indo-US Contact Group here, but some lingering issues may require resolution at the political level.

According to the CLND Act 2010, the operator is required to set aside Rs 1,500 crores in case of a disaster and pay the affected parties. The operator can seek Right to Recourse from the suppliers, which makes investment in the nuclear sector by foreign players more difficult.

The government had asked the General Insurance Company (GIC) to insure the atomic power reactors, but the public sector undertaking did not have the required monetary capacity.

Wary of allowing the foreign insurance companies in the nuclear sector, the government then decided to come up with a nuclear insurance pool, where many companies can pool in the resources to insure the reactors.

"Even if the four government insurance companies pool in their resources, they could only set aside Rs 750 crores, which is half the required amount. As per the global norm, they could only pledge 3 per cent of their net worth for creation of a new pool. This is half the amount of what is required," said another government source.

"The Ministry of Finance had expressed its inability to fill in this gap with sovereign guarantee, citing that they had exceeded the limit for the year. However, the Department of Financial Services has now conveyed to the DAE that it was now ready to give sovereign guarantee to overcome the shortfall," the sources said.

Catastrophe bonds emerged from a need by insurance companies to alleviate some of the risk they would face if a major catastrophe occurred, which would incur damages that they could not cover by the premiums, and returns from investments using them. The concept of catastrophe bond is usually practiced in the US and the Europe.

At a briefing in New Delhi yesterday, the spokesperson

in the External Affairs Ministry said under the nuclear "rubric", the Contact Group was discussing administrative arrangements, how to actualise India's quest for membership of Nuclear Supplier's Group and also issues related to clarification and understanding of its nuclear liability regime.

"What is being discussed is how within the four walls of our legal framework, our legislation, we can provide assurance to our partners in the US and any concerns that they may have either through their vendors or lawyers that is the discussion that is taking place right now in London," the spokesperson said.

Significantly, the talks, which started yesterday, have been extended by a day today.

Noting that "progress has been made" during the previous negotiations, the spokesperson said India was looking forward to "effectively" work with the US in the "extremely important" nuclear field.

Obama will be visiting India on a three-day trip, expected to be a tightly-scheduled one, with talks with Prime Minister Narendra Modi, attending Republic Day parade as the Chief Guest, meeting President Pranab Mukherjee, interacting with business leaders, a joint radio talk with Modi and a quick visit to Agra to see the iconic Taj Mahal.
 
India, US move forward with major breakthrough in N-deal - The Times of India
Jan 25, 2015, 02.47 PM IST

NEW DELHI: India and US successfully finalized terms and conditions for operationalizing their 2008 civil nuclear cooperation agreement in what was the most significant takeaway from US President Barack Obama's summit meet with PM Narendra Modi Sunday.

Even as Modi and Obama continued with their meeting here at Hyderabad House, official sources said the US had agreed to withdraw its "highly intrusive"? demand for tracking of nuclear material sourced even from third countries for use in reactors supplied by US companies.

This single issue threatened to derail the talks held last week by the nuclear contact group and the 2 sides left it to Obama and Modi to decide themselves what they wanted from the agreement which has remained stuck for the past 7 years. What clinched it for both countries was Obama's decision to use his executive powers to waive off this condition imposed by US negotiators. The US will go only by IAEA inspection of India's use of nuclear material and equipment, as per the agreement reached.

The administrative arrangements which the US sought in the London meeting of the contact group had turned into a real hurdle even though the meeting saw considerable progress over the liability issue. While a formal announcement is still awaited, the US has agreed to India's proposal to build an insurance pool to provide cover to suppliers who shunned the civil nuclear agreement because it made them liable to pay compensation in the event of a nuclear accident through a right of recourse provided by section 17 (b) of India's 2010 nuclear liability law.

The 2 countries are also seeking to address concerns over section 46 of the same law which makes suppliers vulnerable tort claims. This section empowers ordinary citizens to file tort claims against suppliers, something which is seen by the US industry as opening US companies to potentially unlimited liability.

The development is likely to be touted as a major achievement? by the Modi government as the 2 countries can now move to effect civil nuclear "within the framework of law" and without having to dilute the liability law. The civil nuclear cooperation with the US could never really take off in the past 7 years because of differences over liability and administrative issues despite India having alloted sites to US companies in Andhra Pradesh and Gujarat.

U.S. President Barack Obama and Prime Minister Narenda Modi talk as they walk through the gardens after having tea together at Hyderabad House in New Delhi on Sunday.
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If its a breakthrough we can hardly complain about it: Salman Khurshid on nuclear deal | Zee News
Last Updated: Sunday, January 25, 2015 - 18:59

New Delhi: Trying to take credit for the landmark civil nuclear deal between India and the United States, Congress leader Salman Khurshid on Sunday said that if at all it is a 'breakthrough' his party welcomes the move which was initiated by them.


“Welcome the fact that something we started has reached it's conclusion. If its a breakthrough we can hardly complain about it, Khurshid told reporters here.

The reaction comes shortly after India and the US sealed the civil nuclear deal, which had been stalled since 2008.

The announcement was made by US President Barack Obama and Prime Minister Narendra Modi, brightening the prospects of the deal that was inked during the then prime minister Manmohan Singh's regime but was never implemented.

"The civil nuclear agreement was the centrepiece of our transformed relationship, which demonstrated new trust. It also created new economic opportunities and expanded our option for clean energy," Modi said addressing a joint press conference with Obama here.

PM further said, "I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our law, our international legal obligations, and technical and commercial viability."

Describing it as a "breakthrough understanding", Obama said the two leaders agreed to "advance our civil nuclear cooperation and we are committed to moving toward full implementation".

"It is an important step and shows us how we can work together to elevate our relationship," the US Prez added.

According to reports, US has withdrawn the tracking clause from the deal through an executive order.

The withdrawal of the tracking clause in the civil nuclear cooperation agreement would unblock billions of dollars of potential trade in nuclear energy and will also strengthen personal rapport.

The two sides signed a landmark civilian nuclear deal in 2008. Holding up the trade was India's reluctance to pass legislation shielding suppliers from liability in the event of a nuclear accident, a deviation from international norms.

The United States views India as a vast market and potential counterweight to China's assertiveness in Asia, but frequently grows frustrated with the slow pace of economic reforms and unwillingness to side with Washington in international affairs.

Earlier in the day, President Barack Obama and First Lady Michelle Obama landed in New Delhi for their three-day visit of India.

Prime Minister Narendra Modi was at the Air Force Station at Palam to greet the visiting dignitaries. The three shared pleasantries before President Obama left for his hotel.

Later, President Pranab Mukherjee formally welcomed his US counterpart to India at the Rashtrapati Bhavan.

President Obama was accorded a ceremonial reception at the forecourt of the Rashtrapati Bhavan, with a grand welcome ceremony followed by the Guard of Honour, where the battalion was led by Wing Commander Pooja Thakur of the Indian Air Force. The US President also received a 21-gun salute.

President Obama also visited Raj Ghat, paying homage to Mahatma Gandhi via a wreath and planting a sapling at his final resting place.

On his trip to India, President Obama has been accompanied by a sizable delegation of top leaders, including Minority Leader of the US House of Representatives Nancy Pelosi, among others.

President Obama, who is the chief guest of this year's Republic Day parade, will be the first US President to attend the Republic Day celebrations tomorrow.

Obama, who visited India in 2010, is also the first US President to visit the country twice while in office.
 

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