When Bush was in India he wanted the deal very badly. So they agreed on fast breeder to be kept out of review.
However, some power centers in US (read feinstein and boxer & co) were not happy or felt that USA was giving away too much, so they introduced 2 poison pills:
1) Barack Obama -- If India tests nuclear weapon, the deal is off. (This is not what Bush had negotiated but he allowed this to come in by back door entry)
2) Reprocessing.
Out of these, US can not compromise on any one because 1) they want to control Indias nuclear technology using this deal.
What Indians are trying to do, is to bargain hard. Both sides will have to make compromises, (probably more so by India). Remember we are a much smaller than the 600 pound gorilla (America).
What Kakodkar is trying it to get to agree America on reprocessing. By doing, the poison pill 1 becomes moot. If tomorrow, India tests a bomb, and america calls the deal off, we have the reprocessing technology and the fuel, we tell them get lost. So I believe point 2 must be more important for India and thats why they are bargaining so hard. Bravo Kakodkar and in your face America! America is realising that they have to give India some room.
Manmohan is pissed that America is playing the hard ball smart ass game that they are so good at. So he is not giving it any more attention.
Remember US businesses like GE are looking to make billions out of this deal. They are friendly with India and of course they are putting pressure on their own govt. However, I think giving reprocessing tech to India works against the interests of their businesses as well. Patience, we will win!!!
