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As I understand
by Chanakya on Jul 10, 2008 04:05 PM

what I understand from news articles and specifically from message boards is that the Deal per se is a necessity for India as well as America - however, certain clauses, terms and safeguards inserted in the deal makes it disadvantageous to India since we have neighbors like Pakistan and China who are allowed to test nuclear any time they want. Not only that there are two types of safeguards agreement - one for no weapon states (i.e. states do not have nuclear boms) and the other nuclear weapon states. This article talks about putting the same terms as for non-weapon states. Not only that, the agreement allows US to inspect all nuclear reactors and plants at any time they wish to, which will expose our secret and safeguarded nuclear and other weapon establishments like research centres, manufacturing hubs, scientific institutes etc. which is against the nation's interest.
Though BJP initiated the Nuclear power arrangement with the US, they were in the negotiating stage - by that time the government changed and the present Government, according to BJP and commies have not had tough negotiations with the US in removing certain conditions, warranties from the safeguard agreement which would hamper India's independence and right to test as well as proliferate.
This is the reason, they were against the deal and wanted the government to place the entire details and agreement for a debate before taking a final decision.
It seems congress succumped to the US pressure and initiate

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Scientists wary of safeguards agreement