The United Nations nuclear watchdog is contemplating to set up a reserve nuclear fuel bank for supplying fuel to countries, which have renewed interest in expanding their atomic energy programme.

This fuel bank will operate on the basis of "apolitical and non-discriminatory non-proliferation criteria," International Atomic Energy Agency Director General Mohammed ElBaradei said at the agency's 51st general conference in Vienna.

Some of the member countries are even proposing to convert a national facility into an international enrichment centre while others are proposing the construction of a new multinational enrichment facility under IAEA control, he said while addressing the conference which is being attended by over 144 countries.

Several Asian nations besides countries in Europe and Africa have shown interest in the construction of nuclear power plants.

IAEA will encourage countries interested in having N-power assured supply of fuel under its activity on multilateral approach to the fuel cycle.

The agency's initiative has a dual purpose of fuel supply assurance and assurance of proliferation resistance, he said.

Controlling of nuclear material is a complex process, yet if we fail to act, it could be the Achilles heel of the nuclear non-proliferation regime, he said.

ElBaradei said in his view, an incremental approach was the way to move forward, beginning with the establishment of an equitable system for assurance of fuel supply.

The next step would seek to bring any new operations for uranium enrichment and plutonium separation under multinational control.

IAEA expects that over a period of time, these multinational controls will also be extended to facilities that already exist to ensure that all countries are treated equally in terms of their nuclear capabilities.

Another area that will remain a major challenge would be the management of spent fuel and disposal of high level radioactive waste.

Speaking of the international project on Innovative Nuclear Reactors and Fuel Cycles, he said key considerations for these innovative designs are improvements in safety, security, proliferation resistance and economics, as well as meeting the requirements of potential nuclear power users.

The methodology is currently being used in assessment studies jointly undertaken by India, Canada [Images], China, Japan [Images], Republic of Korea, the Russian federation and Ukraine.

Roughly a dozen innovative designs for small and intermediate sized reactors are currently under development in various countries, including some at stages that would suggest possible deployment in the next decade, the director general said.

Russia [Images] has begun construction of a 70 MW floating reactor in April 2007 using two water cooled reactors. It will be ready by 2010.

Another 165 MW Pebble Bed Modular Reactor, developed in South Africa with international participation, is scheduled for demonstration at full size by 2012 and a licensing application is to be applied by next year, he said.

Talking on nuclear verification, ElBaradei said nuclear non-proliferation and arms control continues to face a broad set of challenges inspite of the fact that a number of states with safeguards and additional protocols continue to increase with the agency.

The director general said more than 100 member states are yet to conclude additional protocols and 31 countries who are party to the nuclear-non-proliferation treaty have not even brought into force their required comprehensive safeguards agreements with the agency.

"Without safeguards agreements, the agency cannot provide any assurance about a member country's nuclear activities and without additional protocol, the agency cannot provide credible assurance regarding the absence of undeclared nuclear material or activity," he said.

He announced that membership in the joint convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Management has increased upto 54 per cent, which together cover more than 95 per cent of world's radioactive waste inventory.