India - Japan Nuclear Deal

Source: The Hindu

Why in news?
Japan’s Parliament, the Diet, had recently approved the India-Japan civil nuclear energy deal.

What is the significance?

Japanese PM believes that nuclear exports are key to kick-starting the Japanese economy.

2008 waiver it received from the Nuclear Suppliers’ Group so far has had limited tangible benefits for the country’s power industry.

This deal represents hope that it might finally begin paying off.
It is also a necessity for enabling India’s bilateral nuclear deals with other countries.

Key elements of certain reactors like the AP 1000 and EPR, including safety components and domes, are a near-Japanese monopoly.

Has Japan lost significance in nuclear market?

Circumstances in the nuclear industry are undergoing tumultuous changes.
It makes the India-Japan deal less significant than it would have once been.
Recent developments have diminished Japan’s previously formidable nuclear capabilities.

The most dramatic example is that of Toshiba, once a titan of the Japanese nuclear reactor industry that is currently struggling to stay afloat following the enormous losses.

Hitachi Ltd., another nuclear heavyweight, also booked ‘an estimated $588 million write-down for fiscal 2016.

The company said ‘demand for nuclear fuel in the U.S. was unlikely to grow as strongly as had been expected’.
In the aftermath of the 2011 Fukushima nuclear disaster, the nuclear industry is facing a global crisis.
Stricter safety regulations have spiked the costs of constructing plants and ‘some countries have become more cautious about new reactors.

In Japan there has been no domestic construction on a new reactor for the past eight years.
Hitachi, Mitsubishi and Toshiba are all focussing on repair and maintenance of existing plants rather than on construction of new ones.
The emergence of cheap shale oil and gas has made competition in the energy sector tougher than ever.

Wind and solar power generation are also growing as viable, alternative energy sources.

According to the International Atomic Energy Agency (IAEA), just three nuclear reactors started construction worldwide last year, and only 51 were begun between 2010 and 2016.
In contrast 20 to 30 new were being built every year in the 1960s and 1970s.

Source: The Hindu

India Japan's plan for Africa

While China has been able to attract all global powers towards its OBOR initiative, this increases tensions for India from various viewpoints. Japan also faces similar fate as India in terms of relations with China (Senkaku Islands dispute) and a foe’s foe is a friend. Let the issue develop further and we will discuss it in detail once some op-eds come up related to it.
From UPSC perspective, following things are important:
Prelims level:  Asia Africa Growth Corridor, Mombasa port ☞ (Mark it on map and note related geographical features)
Mains level: India Africa relations. Also try to explore them from the prism of China and Japan involvement in African subcontinent and what it means for India. India Japan relations. India and Japan have been partners for a long time and Japan has provided assistance to India in multiple fields.
 News:
India and Japan unveiled a vision document for the Asia Africa Growth Corridor, proposed by the Prime Ministers of the two countries last November
Proposal for growth corridor was presented to the Board of Governors of African Development Bank
More details are likely to be firmed up by September in time for Japanese Prime Minister Shinzo Abe’s visit to New Delhi
Different from OBOR:
Unlike China’s One Belt One Road (OBOR) project, about which India has raised several concerns, the Asia Africa Growth Corridor is conceived as a more open and inclusive programme that will be based on more consultations and keep people as the centre piece rather than just trade and economic ties
Four key elements:
Enhancing capacity and skills
Building quality infrastructure and connecting institutions
Development and cooperation projects in health, farming, manufacturing and disaster management and
People-to-people partnerships
Important partners in mutual growth:
Corridor will facilitate greater trilateral or triangular cooperation among Japan, India and Africa as a win-win-win
As African countries continue to grow against the background of their abundant resources and growing population, they are becoming important partners of Japan and India with deeper relationships, politically and economically
Greater synergy is expected to emerge between Japan’s technology and capital and India’s strong network and experiences in Africa
Greater cooperation sought:
Japan’s Ambassador also called for greater cooperation between Indian and Japanese firms in furthering Africa’s development
He urged Indian investors to participate in the new economic zone coming up around Kenya’s Mombasa port with Japan’s assistance

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