India gives consent to civil nuclear deal with Australia

The Union Cabinet in India has approved Civil Nuclear Agreement with Australia on Wednesday following its launch in November.

India and Australia signed the nuclear cooperation agreement in 2014 when then Australian Prime Minister Tony Abbott visited New Delhi. However, in November 2015, present Australian Prime Minister Malcolm Turnbull told India’s Prime Minister Narendra Modi during the G20 Summit in Turkey that the formalities for the cooperation agreement had been completed and hence the same can be implemented.

The uranium market in Australia is continuously enhancing with strong indication of new mines being planned to open in Western Australia following the increase in global demand for the mineral. The agreement has made the much-needed supply of uranium easier for India’s nuclear power plants. According to the World Nuclear Association and Australian government, after Kazakhstan and Canada, Australia is at the third position as far as the production of uranium is concerned.

Macquarie Bank conducted a recent commodities research and found that uranium is the best commodity of 2015. "We still see nuclear power as a growth industry," the Sydney Morning Herald quoted Macquarie as saying. "We still expect solid demand growth on a five-year view."

Australia’s uranium reserve is used for export as it does not have any nuclear power plant to run. Hence, the collaboration between India and Australia might prove beneficial for the former to ensure nuclear energy expansion. Due to its vast uranium requirements, India has signed nuclear agreements with Canada, France, Russia and Kazakhstan, among others.

India has a reserve of limited uranium, which helps it distribute only three percent of its electricity generation. However, following its consent to the deal, it will be the first nation to purchase Australian uranium without signing the nuclear-proliferation treaty.

“The fuel supply arrangements with Australia will bolster energy security by supporting the expansion of nuclear power in India,” a message came from cabinet meeting, chaired by Modi.