Under the agreement, India agreed to separate its civilian and military nuclear activities.
It also agreed to open up the civilian part to inspection by the International Atomic Energy Agency (IAEA).
In return, the US offered to resume full nuclear trade i.e Selling of reactors, Transfer of Technology, Uranium sale with India.
This deal had went through several complex stages, including amendment of U.S. domestic law (Atomic Energy Act of 1954), a civil-military nuclear Separation Plan in India and an India-IAEA safeguards agreement.
22 nuclear facilities in India have been placed under IAEA safeguards so far.
Why U.S agreed for the deal?
The US wants to bring India closer to the Non Proliferation regime by placing most of its nuclear capabilities under IAEA safeguards.
U.S. also expects that such a deal could spur India's economic growth and bring in $150 billion in the next decade for nuclear power plants, of which the U.S. wants a share.
India is one of the largest buyers of Uranium and everyone wants a share of this market.
The U.S. may also benefit from Indian technology, especially the Thorium based research.
What is the progress in the deal?
It has resulted in enabling import of fuel for reactors placed under International Atomic Energy Agency (IAEA)
This paved the way for setting up of large capacity Light Water Reactors (LWRs) with foreign technical cooperation.
India has approved for the construction of five coastal sites in cooperation with the Russian Federation, France & the USA.
There are nine reactors under construction and another twelve have been accorded administrative approval and financial sanction by the government.
