New Delhi, Dec 16 (IANS) Negotiations over a crucial reprocessing pact, a prerequisite for nuclear trade to start between India and the US, may take longer than expected with Foreign Secretary Nirupama Rao Wednesday saying the two countries are “well within the timeline” to conclude it before July 2010.
“It will certainly be done within the timeline, within a year, before July 2010,” Rao told reporters when asked about the status of the reprocessing pact between India and the US.

The next round of talks has not been scheduled, Rao said. Nuclear officials held the last round of talks on the eve of Prime Minister Manmohan Singh’s talks with US President Barack Obama Nov 24.

The two sides held their first round of negotiations in July. Under the 123 agreement, they are required to conclude the agreement within a year of beginning the negotiations.

The pact was expected to be concluded during Manmohan Singh’s Nov 22-25 visit to Washington, but it could not happen due to differences over the language of the draft agreement.

Four days after the US visit, National Security Adviser M.K. Narayanan told the media accompanying Manmohan Singh to Trinidad and Tobago, that the two sides will conclude the pact on reprocessing spent fuel in a week or so.

“We have arrived at the final stage. It’s all a matter of legalese now. It will take a week or a little more to wrap it up,” Narayanan had said Nov 29.

Now, three weeks later, there is no sign of an imminent reprocessing pact, which indicated that the two sides have not been able to narrow down their differences over a key aspect of the proposed arrangement.

According to reliable sources, the gap between the two sides has narrowed down to just one issue of suspension of the right to reprocess in case India conducts a nuclear test or indulge in activities that may jeopardise the nuclear deal.

Earlier, there were three issues that were holding up the reprocessing pact. Out of these, two issues have been resolved. The Americans have accepted India’s proposal for multiple dedicated national facilities for reprocessing spent fuel, sources said. The second issue related to security of reprocessing facilities. The issue was resolved after India agreed to security levels followed by nuclear powers like the US.

Indian officials have conveyed to their American interlocutors that India was not ready to move away from what is outlined in the 123 civil nuclear cooperation agreement.

The conclusion of the reprocessing pact will effectively conclude the landmark nuclear deal that was inked by India and the US last year and will finally set anxieties in India at rest about the commitment of the Obama administration to the deal, which formed the showpiece of the India-US engagement during the Bush administration.