WASHINGTON, March 23: US companies believe that India will be in the market for more than $100 billion in nuclear supplies while New Delhi has already announced a plan to spend $15 billion on upgrading conventional weapons. US Secretary of State Condoleezza Rice said last week that India plans to import eight nuclear reactors by 2012, at an estimated cost of $14.4 billion.

Reports from New Delhi indicate that the Indian government is likely to allow foreign direct investment of up to 49 per cent in the nuclear-power sector.

When Richard Lugar, chairman of the US Senate Foreign Relations Committee, was asked in a recent interview why the US Chamber of Commerce was so keen on mobilizing support for the India-US nuclear deal, he said the chamber believed that it was an ‘enormous source of jobs and new wealth’ for the American industry.

Besides enlisting the support of the US Chamber of Commerce, India has also hired two lobbying firms in Washington to win the endorsement of the US Congress for the deal.

The lobbying drive, launched by US and Indian businessmen, is estimated at more than $100 million and is considered one of the most expensive lobbying efforts in Washington.

Washington is also eyeing India’s immediate $15 billion agenda of upgrading its armed forces and has already offered to sell F-16 and F-18 aircraft along with long-term manufacturing rights.

Media reports say that Washington has invited India to appoint military officers to liaison posts in the US Strategic Command (Stratcom), its largest and most critical defence setup authorized to control strategic nuclear assets, space and missile defence and global deterrence against weapons of mass destruction.