Foreign Secretary Shyam Saran, center, with Under Secretary of State for Political Affairs, Marc Grossman, left, and Under Secretary for Commerce (Industry and Security) Kenneth Juster, after signing the agreement on the Next Steps in Strategic Partnership (NSSP) initiative, in Washington, D.C., on Sept. 17. (Photo: Courtesy, Indian Embassy, Washington, D.C.)

WASHINGTON: The United States has agreed to scrap export controls on equipment for India’s nuclear power plants following an agreement between the two countries on what has been called the Next Steps in Strategic Partnership (NSSP) initiative.

According to the agreement, which envisages New Delhi’s compliance with Washington’s proliferation concerns, the U.S. will also ease export licensing policies to expand bilateral cooperation in commercial space programs

The agreement was signed at the end of the two-day talks between Under Secretary of State for Political Affairs Marc Grossman and Foreign Secretary Shyam Saran.

A joint statement, released to the media at a press conference addressed by Saran at the Indian Embassy on Sept. 17, said: “Implementation of measures will address proliferation concerns and ensure compliance with U.S. export controls.”

These export controls were part of the sanctions slapped by the U.S. on India after its 1998 nuclear tests.

“The first phase (in the NSSP) is, of course, more fixed on the space side. When we get into the second phase, it will be focused perhaps a little more on the nuclear stage,” Saran told reporters.

The NSSP centers on what is known as the “quartet” issues –– civilian space cooperation, civilian nuclear activities, high-technology trade and missile defense.

The on-going dialogue on NSSP would be a win-win situation for both India and the U.S. As far as India is concerned, it will remove the nonproliferation barriers and pave the way for its access to the American high technology having applications in defense and space. At present, the U.S. gives high technology, or dual-use technology, to India on a case-to-case basis.

Asked whether any conditionalities were laid down for the lifting of export controls, Saran said: “No iron-clad guarantees were demanded.”

The upbeat joint statement said: “The progress announced today (Sept. 17) is only the first phase in this important effort, which is a significant part of transforming our strategic relationship... Implementation of the NSSP will lead to significant economic benefits for both countries and improve regional and global security.”

The two countries agreed in January last to expand cooperation in three specific areas: Civilian nuclear activities, civilian space programs, and high-technology trade. In addition, the two countries agreed to expand their dialogue on missile defense.

These areas of cooperation are designed to progress through a series of reciprocal steps that build on each other.

Since then, the statement pointed out, the two governments have worked closely together to conclude phase one of the NSSP. This has included implementation of measures to address proliferation concerns and ensure compliance with U.S. export controls.

It said these efforts have enabled the U.S. to make modifications to its export licensing policies that will foster cooperation in commercial space programs and permit certain exports to power plants at safeguarded nuclear facilities.

These modifications, including removing the Indian Space Research Organization from the Department of Commerce Entity List, are fully consistent with U.S. Government nonproliferation laws, obligations, and objectives, it said.