What is Nuclear deal?

The Lok Sabha’s vote of confidence in Prime Minister Dr. Manmohan Singh’s Government last week is a decisive vote for both nuclear power as India’s key energy option and a strategic alliance with the United States of America (USA).
There is also a rising confidence among the world’s major nuclear and industrial nations that India is a responsible nuclear power. Many of these countries had shut their doors on India in 1974 when it tested a peaceful nuclear device. These restrictions became even more stringent when India declared herself a nuclear weapons state following the second Pokharan explosion in 1998.

The Act
The cornerstone of this new era in civilian nuclear co-operation is the 2007 agreement between India and the U.S., called the “123 Act”. Once the U.S. Congress approves this Act, it will allow the sale of U.S. nuclear technology and fuel to India. However the U.S. must also receive clearance from the 45 countries that comprise the Nuclear Suppliers Group (NSG) for its nuclear exports to India.
This is because New Delhi is not a signatory to the international agreement to prevent the spread of dangerous nuclear material, namely the Nuclear non-Proliferation Treaty (NPT). Once the NSG exempts the U.S. from this rule, other countries will also demand similar concessions for exports to India.
In this context the new agreement would pave the way for large imports of uranium, the fissile fuel necessary to operate reactors, to produce nuclear power. Currently, the share of nuclear power in India’s overall electricity production is only about three per cent. This proportion is expected to rise as nuclear energy is considered a ’clean source of energy’ compared to conventional fuels which are responsible for greenhouse gas emissions that contribute to global warming.