U.S. Firm to Build Six Nuclear Reactors in India: VIDEO
U.S. Firm to Build Six Nuclear Reactors in India
Barack Obama and Narendra Modi reach deal, the first since countries signed civil nuclear agreement in 2008
U.S. President Barack Obama shakes hands with Indian Prime Minister Narendra Modi after their remarks to reporters following a meeting in the Oval Office at the White House on Tuesday. PHOTO: JONATHAN ERNST/REUTERS
By CAROL E. LEE and WILLIAM MAULDIN
Updated June 7, 2016 6:51 p.m. ET
110 COMMENTS
WASHINGTON—The U.S. and India agreed to move ahead with the construction of six nuclear reactors in India by an American company, the first such move since the countries signed a landmark civil nuclear deal in 2008.
The breakthrough capped a wide-ranging White House meeting on Tuesday between President Barack Obama and Indian Prime Minister Narendra Modi, who are seeking closer cooperation as Washington wants to boost New Delhi’s role in counterbalancing China.
The meeting, which included lunch at the White House, will be followed on Wednesday by a speech by Mr. Modi to Congress, wrapping up the Indian leader’s fourth visit to the U.S. as part of an increasingly close relationship that has been sought by both governments.
The warming Indian relationship is backed by the lure of accelerating growth in that country, signs of improvement in the business climate, shared democratic values and some overlapping strategic goals.
By contrast, recent U.S. interactions with China, a far bigger Asian economy and U.S. trading partner whose growth appears to be slowing down, have been marked by strains and warnings over economic and security issues.
Under the new atomic-power agreement, Nuclear Power Corporation of India and Westinghouse Electric Co., a U.S. unit of Toshiba Corp., will begin engineering and site-design work for the reactors, though the final contract won’t be completed until June 2017, White House officials said. The deal marked a significant step in resolving obstacles to the sale of nuclear reactors and fuel to India.
“Culminating a decade of partnership on civil nuclear issues, the leaders welcomed the start of preparatory work on-site in India for six AP 1000 reactors to be built by Westinghouse and noted the intention of India and the U.S. Export-Import Bank to work together toward a competitive financing package for the project,” the White House said in a statement.
“Once completed, the project would be among the largest of its kind.”
Indian Prime Minister Narendra Modi arrived in Washington on Monday for a three-day state visit, his fourth such trip to the U.S. since he was elected in 2014. Photo: AP
The ability for U.S. companies to invest in nuclear-power plants in India has been a point of contention. At issue was a 2010 law passed in India that would make U.S. firms liable for accidents at power plants they help build.
“The leaders clearly understand that the parties are working diligently toward an agreement and they’re clearly supportive of an agreement in the near term,” said Courtney Boone, a spokeswoman for Westinghouse Electric in Cranberry Township, Pa. “Westinghouse wants to be able to provide the government of India clean, reliable energy for its people.”
The announcement follows earlier talks between Messrs. Obama and Modi. Both leaders said last year in New Delhi that they had begun to resolve issues that have prevented U.S. companies from investing in nuclear-power plants in India.
“We continue to discuss a wide range of areas where we can cooperate more effectively in order to promote jobs, promote investment, promote trade, and promote greater opportunities for our people, particularly young people, in both of our countries,” Mr. Obama said.
Mr. Modi, who addressed business leaders Tuesday evening, said both the U.S. and India “need to widen their cooperation.”
At Tuesday’s event with business leaders, Amazon.com Inc. Chief Executive Jeff Bezos said the company would invest an additional $3 billion in India, on top of the $2 billion the company announced in 2014.
He said he hopes the two countries make additional progress before he and Mr. Obama meet again in September during the summit of the Group of 20 leading nations.
Mr. Modi’s visit is a part of Mr. Obama’s effort to pivot U.S. foreign policy toward Asia.
Messrs. Obama and Modi also agreed Tuesday that the U.S. and India would ratify the international climate-change agreement reached in Paris in December. That step is expected “as soon as possible this year,” said Brian Deese, a senior White House adviser.
To demonstrate its commitment, India has begun a process domestically to achieve that goal, Mr. Deese said.
“It’s clear that there’s a closer tie developing between the U.S. and India,” Sen. Ben Cardin (D., Md.), the top Democrat on the Senate Foreign Relations Committee, said Tuesday, a week after the senator visited India and a day before Mr. Modi addresses lawmakers.
Mr. Modi, meanwhile, is “taking the right steps” to deal with complaints about human rights and trafficking, Sen. Ben Cardin (D., Md.), the top Democrat on the Senate Foreign Relations Committee, adding that conditions are better in some Indian states than in others. “There’s not the same level of protection throughout the country that we would like to see. For me, it’s a challenge of their federal system.”
A congressional commission on human rights was to meet Tuesday to discuss India.
“Through our country’s strong and growing relationship with India, we have an opportunity to encourage the protection of peaceful religious minorities,” Sen. James Lankford (R., Okla.) said in a statement.
Overall, Mr. Modi is likely to be greeted warmly Wednesday on Capitol Hill. Many U.S. lawmakers have significant Indian-American constituencies in their states and have welcomed closer ties between the two countries.
Until three years ago, Mr. Modi was barred from the U.S. after religious riots broke out in 2002 in a state he governed as chief minister, leaving 1,000 people dead, most of them Muslims. The U.S. revoked his tourist visa and denied him a diplomatic visa following allegations Mr. Modi didn’t do enough to restrain Hindu mobs from attacking Muslims.
Mr. Modi has denied the accusations and an Indian court has said there isn’t enough evidence to prosecute him.
Write to Carol E. Lee at carol.lee@wsj.com and William Mauldin at william.mauldin@wsj.com
http://www.wsj.com/articles/u-s-and-india-agree-u-s-company-to-build-six-nuclear-reactors-1465317345
