India pitches for membership of global non-proliferation regimes

April 19, 2012

Global

New Delhi, April 19: India on Wednesday made the most persuasive case for India's "full membership" of the global non-proliferation regimes. In a major policy statement, foreign secretary Ranjan Mathai told a gathering of nuclear experts that "the logical conclusion of partnership with India is its full membership of the four multilateral regimes."

Mathai, unusually, gave a detailed exposition of India's own strategic export control regime, national laws governing trade in sensitive items and its enforcement mechanisms. The aim, said officials, was to be more open about India's own efforts and systems while making a more compelling case for New Delhi's membership to the non-proliferation regimes. India's efforts to join the four top non-proliferation regimes - Nuclear Suppliers Group (NSG), Missile Technology Control regime (MTCR), Australia Group and Wassenaar Arrangement - started out in November 2010, but the campaign is yet to acquire critical mass.

While India is yet to make a formal application to join the regimes, its proposed membership has started a debate in these clubs. Over the next few months, all four clubs will be holding their plenary sessions where the Indian case will figure prominently. The government believes the top diplomat's statement today will provide an impetus to India's case and stir the debate. Another complaint has been about India's almost brahminical approach to what its doing in the non-proliferation field. Thus far, there has been little attempt by the Indian government to explain its non-proliferation objectives, systems and mechanisms to the world. With Mathai's speech, the government is also trying to clear the cobwebs about itself to the world.

In the months since November 2010, when India made a bid to join these groups, India has held several "outreach" sessions with all four. Mathai said he was in Vienna in March for the NSG outreach, while he expected to conduct an Australia Group outreach within the next few weeks. But its now being felt in the government that the Indian campaign has to move into higher gear. Today was a sort of opening salvo. Mathai clarified India has placed 12 out of 14 of its nuclear reactors under international safeguards, which puts India well within the deadline for compliance with its separation plan. He also reiterated India's commitment to ratify the additional protocol which envisages more intrusive checks into India's civilian nuclear sector.

India's membership is not an easy decision. First, there is an NPT adherence that is seen as crucial criteria. India has not signed the NPT and is not likely to do so, as a non-nuclear weapons state. So India's membership into these groups would have to take this refusal into account. Trying to transcend this hurdle, Mathai suggested they look at the bigger picture. "There are underlying objectives and principles that are common to all the regimes to which India subscribes to fully as it has demonstrated responsible non-proliferation and export control practices and has shown the ability and willingness to contribute substantially to global non-proliferation objectives." Whether this is acceptable is not yet clear. Although India wants to join with the four regimes in tandem, the NSG is believed to be the more important one. This year, India believes that with the US at the helm of NSG, its case might be easier.

Mathai said India, has the ability to produce and manufacture a large portion of the products that are controlled by these regimes. "As India's integration with the global supply chains moves forward, it would be in the interest of the four regimes that India's exports are subject to the same framework as other major supplier countries." It effectively puts the onus elsewhere - that outside the club, India can still manufacture sensitive items and they would be unregulated by the non-proliferation regimes. This should be a powerful argument for India being inside the tent. Of course, he left unsaid the fact that China's decision to supply nuclear reactors to Pakistan without the NSG waiver, has actually emasculated the global body.

Instead, Mathai interestingly placed India's actions and objectives of strong export control systems within India's development matrix. "As India's integration with global trade patterns and supply chains deepens, it would increasingly become an important hub of manufacturing and export of high technology items. Foreign investment including through offsets for governmental procurement will strengthen our global links. Our export control system would add to the reliability and credibility of Indian companies in the global market and thus increase their competitive edge."

The foreign secretary added, "India has continued with its policy of refraining from transfer of enrichment and reprocessing technologies (ENR) to states that do not possess them and supporting international efforts to limit their spread." While India might be fully in compliance, the NSG has adopted a guideline that prevents ENR technologies from going to non-NPT states. This would put India out of the box. The current negotiations are trying to square that circle. Mathai said India supports the IAEA's fuel-bank resolution and pitched to become a supplier state. Obviously, India cannot be a full supplier if it cannot access latest ENR technologies.

India, he said, not only had a series of legislative tools to control sensitive trade - from Atomic Energy Act, Customs Act of 1962 to the WMD Act of 2005 - to a robust enforcement mechanism. Mathai said, "DGFT is in the process of introducing by June this year an online application system that would not only further ease the application process but also facilitate implementation." He added, "We view a strong and effective national export control system as an essential link between our broader national security goals and our wider foreign policy objectives."

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News Network
January 21,2020

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

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News Network
March 5,2020

Mumbai, Mar 5: Jet Airways founder Naresh Goyal and few others have been booked by the ED in a money laundering case even as the agency is conducting searches at his premises, officials said on Thursday.

They said a criminal case against the former chairman of the airlines has been filed under the Prevention of Money Laundering Act (PMLA) after taking cognisance of a recent Mumbai Police FIR filed against him.

The Enforcement Directorate carried out raids at Goyal's premises in Mumbai on Wednesday and also questioned him after filing the case, they said.

The action is continuing, they added.

The Mumbai Police FIR pertains to charges of alleged fraud by Goyal and others against a Mumbai-based travel company.

Goyal has earlier been grilled by the central probe agency in a case filed under the Foreign Exchange Management Act (FEMA) in September last year.

The agency had carried out similar raids, under the FEMA, in August last year against Goyal, his family and others.

ED has alleged in the past that the businessman's empire had 19 privately-held companies, five of which were registered abroad.

The agency is probing charges that these firms allegedly carried out “doubtful” transactions under the guise of selling, distribution and operating expenses.

The ED suspects that expenses at these companies were allegedly booked at fake and high costs and as a result, they “projected” huge losses.

Alleged shady aircraft lease transactions with non-existent offshore entities are also under the ED scanner and it is suspected that Jet Airways made payments for lease rental to “ghost firms”, which purportedly routed the ill-gotten money in Goyal's companies.

A full-service carrier, Jet Airways shut its operations in April last year after running out of cash.

A month earlier, Goyal had stepped down as the chairman of Jet Airways.

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News Network
January 17,2020

Jan 17: India's "high power" communication satellite GSAT-30 was successfully launched in the early hours of January 17, the Indian Space Research Organisation (ISRO) said.

The satellite, aimed at providing high-quality television, telecommunications and broadcasting services, was launched onboard Ariane 5 rocket from French Guiana.

Blasting off from the Ariane Launch Complex in Kourou, a French territory located in northeastern coast of South America at 2.35 am IST, European space consortium Arianespace's Ariane 5 vehicle injected GSAT-30 into the orbit in a flawless flight lasting about 38 minutes.

Arianespace CEO Stéphane Israël tweeted about the successful launch of GSAT-30.

ISRO's U R Rao Satellite Centre Director P Kunhikrishnan, who was present in Kourou, congratulated the ISRO community and Arianespace team on the successful launch.

Calling it an "excellent start" to 2020 for ISRO with the launch, he said, "The mission team at the master control facility have already acquired the satellite and they will immediately complete the post launch operations...."

The 3,357-kg satellite, which was deployed from the lower passenger position of Ariane-5 launch vehicle (VA 251) into to geostationary transfer orbit (GTO), is configured on ISRO's enhanced I-3K Bus structure to provide communication services from Geostationary orbit in C and Ku bands.

The satellite derives its heritage from ISRO's earlier INSAT/GSAT satellite series, and is equipped with 12 C and 12 Ku band transponders.

GSAT-30 is to serve as replacement to the "aging" INSAT-4A spacecraft services with enhanced coverage, ISRO has said, adding the satellite provides Indian mainland and islands coverage in Ku-band and extended coverage in C-band covering Gulf countries, a large number of Asian countries and Australia.

With a mission life of 15 years, GSAT-30 is an operational communication satellite for DTH, television uplink and VSAT services.

The Bengaluru-headquartered ISRO has said the communication payload of GSAT-30 is specifically designed and optimised to maximise the number of transponders on the spacecraft bus.

According to the space agency, the spacecraft would be extensively used for supporting VSAT (Very Small Aperture Terminal) network, television uplinking and teleport services, digital satellite news gathering (DSNG), DTH television services, cellular backhaul connectivity and many such applications.

One Ku-band beacon downlink signal is transmitted for ground-tracking purpose, it added.

For its initial flight of 2020, Arianespace on its website said, it would orbit EUTELSAT KONNECT, a telecommunication satellite for the operator Eutelsat, along with GSAT-30, using an Ariane 5 launch vehicle from the Guiana Space Centre.

EUTELSAT KONNECT – which was produced by Thales Alenia Space for Eutelsat – was riding in the upper position of Ariane 5's payload arrangement, and was released first in the flight sequence at 27 minutes following liftoff.

Since the launch of India's APPLE experimental satellite on Ariane Flight L03 in 1981, Arianespace has orbited 24 satellites, including GSAT-30, for the Indian space agency.

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