The U.S. is not willing to concede India's rights to reprocess spent fuel and procure equipment for reprocessing, enrichment and heavy water production. This falls short of its earlier commitment to "full nuclear co-operation". By contrast, other countries with advanced nuclear technology like France and Russia do not have any qualms about this. The Bush administration's Global Nuclear Energy Partnership proposes that India be relegated to a humiliating "recipient country" status and not engage in reprocessing or enrichment activity. This is a slap in the face for India which has long mastered the technology. Reprocessing is a key aspect of India's fast breeder program.
The United States failed to remove the contentious portions of its Atomic Energy Act that would automatically terminate co-operation in case of India testing a nuclear device. While India now has a self-imposed and informal unilateral moratorium, it should never sign a more formal "no test" clause that translates such commitment into a principle of international law. It should always retain the option to test at a future date.
In the event of a test, U.S. proposes to take back its material and nuclear fuel stockpile. Since this would put American companies at a disadvantage vis-%uFFFD-vis the French or the Russians, the U.S. now attempts to introduce a similar clause in the NSG guidelines that would govern India's relations with other member states. This would cripple nuclear commerce with them as well! This is a complete reversion of the March 2006 agreement where the Americans agreed to work with other fuel suppliers to ensure that the imported reactors would have a life-time's supply in return for perpetual safeguards.
The U.S. has long sought to dismantle Indian nuclear weapons program. After India's nuclear test in 1974, they enforced a tough sanction regime and stopped fuel supplies to the American-made Tarapur nuclear reactor. Despite hardships, successive Indian governments refused to concede India's strategic program. The U.S. now attempts to do so under the garb of so-called strategic partnership. The Sonia Gandhi-led administration opts to concede on national defense under the illusion of civilian nuclear cooperation. It appears to want India disrobed into perpetual nuclear nudity.
Excerpts from http://www.bharat-rakshak.com/NEWS/newsrf.php?newsid=8599