SEARCH

It’ll be ‘collaborative approach’ in India-Canada civil nuclear ties

Sandeep Dikshit
print   ·   T  T  

We can meet India’s huge need for uranium, says High Commissioner

Stewart Beck
Stewart Beck

India and Canada are aiming for closer partnerships in civil nuclear energy and hydrocarbons with the dissipation of distrust that kept them estranged for 40 years after India had conducted a nuclear test in 1974.

India will take the first cargo of oil sourced from Canada’s east coast in January. Indian refiners are interested in importing Alberta blended bitumen from its Saint John terminal.

This relationship would be supplemented with a “collaborative approach” in the civil nuclear sector, decks for which have been cleared with the signing of a civil nuclear accord and finalising of administrative arrangements, Canadian High Commissioner Stewart Beck told The Hindu .

Canada’s ties in the nuclear sphere began in the mid-1950s and lasted till India’s first nuclear test in 1974. Last year, Canada closed that chapter when its Foreign Minister John Baird said his country had “turned the pages of the last century.”

Now, Canada’s ice-free marine terminal at Saint John would cater for very large crude carriers (VLCC), thus making transportation economical. “Indian refiners like that product and there will be significant benefits for them,” pointed out Mr. Beck.

The two sides have just completed an energy dialogue which has been elevated from the bureaucratic to ministerial level. Consultations on foreign policy issues have also picked up and External Affairs Minister Salman Khurshid visited Canada in September for this purpose.

“The idea of developing shale oil and gas, mainly by the U.S. and Canada, has galvanised the geopolitics of the energy market,” noted Indian Council of World Affairs scholar Zakir Hussain. Three scenarios might emerge. First, the lowered gas prices will force key producers to readjust production and they may consider forming a cartel; second, gas may begin to be independently priced; and third, this independent pricing would ultimately have an effect on oil prices, he says.

“We are now putting in force a civil nuclear partnership. India has several reactors derived from Canadian technology but since then it has gone on its own path of development. We are now in a situation where the two can talk to each other. There is a huge need in India of uranium which we can sell,” said Mr. Beck.

Bilateral trade

Both Prime Ministers had set the bilateral trade target at $15 billion by the end of 2015 fiscal. It was to be assisted by a Comprehensive Economic Partnership Agreement (CEPA). Even as CEPA continues to be discussed after eight rounds of negotiations, Mr. Beck is pessimistic about the bilateral trade target.

However, he forecasts a breakthrough in investments as Canadian pension funds are looking at India’s infrastructure requirements. The Canada Pension Plan Investment Board (CPPIB) has already announced investment of $200 million. This is a small amount but precursor to more funds lining up to invest in India such as the Ontario Teachers’ Pension Plan.

As for education, Mr. Beck sees it as a low-hanging fruit and claims that Canada’s efforts are not about attracting Indian students but replicating the Canadian system of strong elementary and high schools. Students will then opt for either university or the vocational stream with no stigma attached to the latter.


  • In hydrocarbons tie-up, India will take first cargo of oil sourced from Canada’s east coast next month

    Energy dialogue elevated from bureaucratic to ministerial level




  • We can meet India’s huge need for uranium, says High Commissioner


    O
    P
    E
    N

    close

    Recent Article in NATIONAL

    Changes to MGNREGS may cut into wages

    Parties feel it will dilute scheme’s universal employment guarantee »