JOIN USThere is reason for India to look upon the outcome of French prime minister Nikolai Sarkozy’s visit to this country with more than a little satisfaction. The two sides have set in motion bilateral business deals worth many billions of dollars. These include a framework agreement under which French nuclear power giant Areva will construct two civil nuclear plants at Jaitapur in Maharashtra, costing roughly $9.5 billion and also supply uranium fuel. Areva plans to construct another four nuclear power plants at a total cost of $25 billion. India and France have also finalised deals for joint missile development, refitting of India’s Mirage fighter jet fleet and so on. Besides, reiterating France’s backing for India’s entry to the Security Council as a permanent member, Sarkozy also promised support to India’s membership of “any nuclear body that it wished.” Unlike US president Barack Obama’s ambiguous, even conditional support to India’s permanent membership of the UNSC, there were no ifs and buts diluting Sarkozy’s endorsement of India’s global leadership role. India’s partnership with France is one that holds immense potential.
Operationalisation of the nuclear reactor agreement with Areva will have to wait sorting out of some technical and pricing issues. It appears that the French want some clarifications on the nuclear liability issue. However, these concerns are not ‘deal breakers,’ Areva officials have said, which means that the just-signed nuclear reactor framework agreement is more or less a done deal. It does seem that the French have taken a decisive step towards breaking an informal consensus that had emerged among western countries on not doing business with India following its enactment of nuclear liability legislation. This is heartening. France has proved more of a friend to India than its ‘long-term ally,’ Russia or its ‘natural ally,’ the US.
India’s nuclear liability legislation, which seeks damages from reactor suppliers in the event of a nuclear accident, has been bitterly opposed abroad and criticised by sections within the country too as likely to deter suppliers from doing business with India. Fortunately, India did not buckle under their pressure. It stood its ground on this legislation and this approach has paid off. This is heartening for India as it will force American and Russian suppliers to follow suit. With deals with the French in its pocket, India can now bargain with other suppliers from a position of strength. India must leverage smartly this advantage it has gained.