Breaking the long lasted logjam, US President Barack Obam and Prime Minister of India – Narendra Modi signed the agreement that led the way to make the Indo-US nuclear deal operational.
Indo-US civil nuclear deal
The Indo-US nuclear deal had already been signed in 2008 but could not become operational as two parties have not agreed on some issues like nuclear liability.
However, President Barack Obama used their executive powers to waive the conflicting terms in the agreement.
President Barack Obama has been on the visit to India as a chief guest for the republic day.
Summary about the deal:
- The civil nuclear agreement between India and US signed in 2008 can now become operational
- Companies from US can start building reactors in India
- These companies have already been allotted sites in Gujarat and Andhra Pradesh but could not start work due to worries over the liability law.
- Liability law provided for the right of recourse against suppliers.
- Now, India’s liability law remains intact, while US agrees that its concerns have been addressed.
What did Modi say?
“The deal is the centrepiece of India’s transformed relationship with US, demonstrating new trust.”
