Monday, June 16, 2008

N-Deal not lucrative enough

An article from the TOI:
NEW DELHI: Despite the "energy" argument invoked by the Manmohan Singh government to push the India-US nuclear deal, concerns about the pact's implications for India's strategic programme and New Delhi's evolving relationship with the world's sole hyper power refuses to go away.

The case for nuclear energy has received a boost with rising oil prices and its compatibility with the climate change-driven demand for clean power to reduce CO2 generation.

A significant shift to nuclear energy, facilitated by cooperation with Nuclear Suppliers Group nations, has been seen to be the way forward India.

But India's nuclear power generation scenarios raise a few hard questions that could undercut the attractive argument that reducing use of hydrocarbon fuels will present a win-win situation.

Contributing as it does barely 3% of India's power generation, adding capacity is expected to be a slow, expensive and somewhat uncertain process.

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