Canada nears $2.8 billion uranium deal to power India’s nuclear plants

Canada is reportedly close to finalising a landmark US$2.8 billion deal to supply uranium to India over the next decade, strengthening nuclear energy cooperation between the two countries.

A source familiar with the negotiations told Hindustan Times, “The agreement is at an advanced stage and we expect it to be finalised soon. Cameco Corp., Canada’s key uranium producer, will supply the fuel to India’s nuclear plants.”

The discussions follow a recent bilateral meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi at the G20 summit in Johannesburg. After the meeting, an official statement said, “Both leaders reaffirmed their commitment to deepening civil nuclear cooperation, including long-term uranium supply agreements.”

Indian officials have previously indicated interest in small modular reactors, suggesting the deal could be part of a broader, strategic nuclear partnership. One official commented, “This agreement is not just about uranium; it signals a strengthening of energy and technological collaboration between India and Canada.”

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If sealed, the deal would expand the framework established under the Canada–India Nuclear Cooperation Agreement of 2013, which would be a significant step in bilateral trade and energy relations.

What soured the India-Canada relationship?

In June 2023, Hardeep Singh Nijjar, a Canadian Sikh activist and a prominent figure in the Khalistan separatist movement (he led the banned Khalistan Tiger Force), was shot dead outside a gurdwara in Surrey, British Columbia.

Canada’s then Prime Minister Justin Trudeau later claimed there was “credible intelligence” suggesting that agents of the Indian government were involved in orchestrating the killing. This sparked a major diplomatic crisis between Ottawa and New Delhi.

India strongly denied any involvement. New Delhi called the allegations “absurd” and “motivated,” saying they were part of a smear campaign and accusing Canada of harbouring extremist elements.

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However, a Canadian commission report released later concluded there was no definitive link between a foreign state (i.e., India) and Nijjar’s killing.