ndia appears to have managed to ward off an impending nuclear fuel crisis. On March 2, 2006, New Delhi settled its differences with Washington over the highly controversial nuclear separation plan. An agreement on the bifurcation of civilian and military nuclear facilities during George Bush's visit meant the removal of a sore point that almost derailed a bilateral nuclear cooperation pact the two countries signed on July 18, 2005.

The bifurcation of nuclear facilities was a contentious issue for the Indian department of atomic energy, whose operations have been cloaked in secrecy. At the same time, a nuclear accord with the us was eagerly awaited by India to end its nuclear isolation since it refused to sign the 1968 Non-Proliferation Treaty (npt). The country's nuclear establishment is also awfully short on funds and fuel to pursue its expanding nuclear ambitions.

As per the agreement, India will open 14 of its nuclear reactors (nearly 65 per cent of the installed capacity) for international scrutiny. However, the prototype fast breeder reactor being built in Kalpakkam, near Chennai, will be exempt (see