India's nuclear business - Americans trail French, Russians

24 July 2008

US companies are fretting over the lead established by their Russian and French rivals in preparing the ground for securing lucrative deals to build nuclear reactors in India. By Rajiv Singh

Having won a vote of confidence in parliament, the Indian government has now decided to ratchet up its campaign to end the country's nuclear isolation. New Delhi will focus on nations with  reservations about exemptions for India. Team of ministers and senior officials are rushing to various world capitals.

A more piquant situation may be developing elsewhere, however. It appears that American nuclear equipment and services companies are already apprehensive about the lead that Russian and French companies have established. Some lucrative contracts for the construction of nuclear reactors in India have already been signed, and will be effective as soon India completes the formalities with international regulatory agencies.

Nothing could be more ironical, considering that the government's erstwhile coalition partners nearly succeeded in toppling it on charges of cuddling up to Uncle Sam. In fact, the Indian government may well have to invest time in assuaging American fears that US companies will not lose out entirely to their foreign competitors.

The concerns of American giants such as GE and Westinghouse, the latter acquired by Japanese major Toshiba in 2006, now emerge more strongly, given the fact that for the first time the Indian government would now appear to be moving ahead on a clear path towards bringing the Indo-US nuclear deal to a firm, and positive, close.

The reasons for American companies to feel apprehensive about their prospects in India may be both political and technological.

Guests of honour
French president Nicolas Sarkozi, who visited India in early 2008, and Russian president Vladimir Putin, who came in 2007, have signed accords with India for supply of nuclear reactors and fuel.