India, Japan ink MoU on peaceful use of nuclear energy

“Japan had previously been reluctant to forge such a deal with India as it has yet to become a signatory of the nuclear Non-Proliferation Treaty (NPT) which only recognizes Britain, China, France, Russia and the United States as nuclear powers”, political analyst Teruhisa Muramatsu told Xinhua.

Taking their robust bilateral ties to a new level, India and Japan on Saturday inked a number of pacts in key areas of defence and nuclear energy as well as building of first bullet train network between Mumbai-Ahmedabad at a cost of about Rs 98,000 crore.

Japan has offered a “highly concessional loan” at an interest rate of 0.1 percent rate with repayment over 50 years and a moratorium for 15 years, Indian Foreign Secretary S. Jaishankar told a news conference. For the Indonesian project, China Development Bank (國家開發銀行) provided three quarters of the required US$5.5 billion funding.

Given these dynamics, Abe and Modi clinched a landmark nuclear agreement, five years in the making, for peaceful uses of nuclear energy. He said the “Japan Plus” initiative that was begun past year as a policy experiment, is also doing well. He said the pact will help Westinghouse Electric Corporation and GE Energy Inc to do nuclear business in India as both have Japanese investments.

The two Prime Ministers reiterated their unwavering commitment to realise a peaceful, open, equitable, stable and rule-based order in the Indo-Pacific region and beyond. Components to be manufactured in India include rolling stock, equipment and machinery. The railway deal-which comes with financing valued at $12 billion on terms Mr. Modi described as “very easy”-represents a boon for Japanese business, which suffered embarrassing losses to China in bids for bullet-train contracts in Indonesia and Thailand”. A unique agreement was also signed for protection of military information between the two countries. The steps are created to ensure that the rise of China, the top trading partner for both nations, doesn’t come at the expense of smaller economies in the region.

China expressed dissatisfaction on Monday over India-Japan agreement concerning the freedom of navigation in South China Sea. During a May 2013 meeting by Abe and India’s then-prime minister Manmohan Singh, the two leaders said that negotiations had resumed.

A joint feasibility study for the project was conducted by the Indian Railways and Japan International Cooperation Agency in July this year.

Prime Minister Modi emphasised that he wanted India and Japan to move ahead together, not just in the sphere of high-speed trains, but also for “high-speed growth”. “The Kyoto-Varanasi partnership is one of its strong symbols”, he said at a joint media interaction with Modi. “In terms of putting up cold hard cash for the signature programs of the Modi government, it’s the Japanese companies and government”.

In a statement, Abe noted that the final agreement on cooperation “will be signed after the technical details are finalised, including those related to the necessary internal procedures”.

“While it’s unlikely a civil nuclear deal will be signed during this visit, the two sides will air their concerns”. Under Abe, Japan has shifted away from 70 years of post-war pacifism, and the country recently lifted a decades-old ban on arms exports.

The two countries also agreed to explore future projects on defence technology transfer, including on Japanese-made US-2 amphibian aircraft. “The specificity of the Japan-India civil nuclear negotiation is its commercial aspect”.

Mr Modi and Mr Abe discussed developments in the South China Sea and urged “ll states to avoid unilateral actions that could lead to tensions in the region”.

An energy accord with Japan would allow India to boost its nuclear-power production, easing global pressure for it to cut carbon emissions.