Indian and US diplomats are struggling to strike a compromise over the so called landmark nuclear deal.
The controversial deal is in limbo due to what Washington says is New Delhi's refusal to accept conditions essential to clinch the deal.
The US Congress approved the deal in December 2006 but the countries have since struggled to negotiate a bilateral agreement that lays down the terms of nuclear trade.
Two key terms have held up signing of the agreement:
FIRST: It relates to Washington ending nuclear cooperation if New Delhi conducts another nuclear test. India has declared a unilateral moratorium on further tests after conducting underground explosions in 1998 but has refused to join the Comprehensive Test Ban Treaty (CTBT). Some Indian scientists say they would like New Delhi to have the freedom to test again, while agreeing to the condition would make the moratorium binding.
This is also a political landmine for Prime Minister Manmohan Singh as he is under strong pressure from Left allies and the Opposition BJP who don't want him to succumb to US pressure.
Already weakened by losses in local elections and facing flak for rising prices, Singh's ruling Congress is not in a mood to face charges of a sell-out to Washington.
SECOND: It is very important. It relates what some Indian experts say is a more important hurdle, is Washington's refusal to allow India to reprocess US-origin spent fuel.
India has negligible uranium of its own and the country's nuclear programme is pursuing an ambitious plan to eventually switch to using thorium--another nuclear fuel of which India has nearly a third of global reserves.
However, the thorium cycle needs to use small quantities of plutonium, extracted from reprocessing spent fuel rods. Plutonium can also be used to make bombs and Washington ostensibly doesn't want to allow that.
But with the potential of India's nuclear market seen at $100 billion, some Indian experts said they suspect Washington is more keen to ensure India does not become independent of US uranium supplies and technology.
The biggest challenge to the consummation of the agreement is from the economics of nuclear policies that India is pursuing. The government official said while New Delhi could agree to the clause on future tests if Singh could do some political tightrope walking, it was unlikely to compromise on reprocessing.
'The whole thing has begun to smack of atomic colonialism,' said R R Subramanian, an independent Indian nuclear expert.
'America wants India to be dedicated to its enriched uranium. They don't want India to become independent and lose business.'
India can trust a CHINESE dog...Never trust an AMERICAN horse....
