FACTBOX: India's draft nuclear inspections pact with IAEA

(Reuters) - Governors of the U.N. nuclear watchdog meet on Friday to consider India's draft plan for inspections of its civilian atomic reactors, a precondition for launching a deal to obtain U.S. nuclear fuel and technology.

If the plan passes, India must then obtain a waiver from the 45-nation Nuclear Suppliers Group, because it is not a member of the Non-Proliferation Treaty, and finally ratification of the nuclear cooperation deal by the U.S. Congress.

Following are main points about the 23-page "Agreement with the Government of India for the Application of Safeguards to Civilian Nuclear Facilities".

* WHY IT IS NECESSARY

Making India's declared civilian reactors -- 14 out of 22 -- subject to regular IAEA non-proliferation inspections is required for commerce with NSG members, including Washington.

India has been embargoed by the NSG for having never joined the NPT and test-detonating nuclear devices in 1974 and 1998.

* KEY PASSAGES IN PREAMBLE OF AGREEMENT

"An essential basis of India's concurrence to accept Agency safeguards ... is the conclusion of international cooperation arrangements creating the necessary conditions for India to obtain ... reliable, uninterrupted and continuous access to fuel supplies from companies in several nations, as well as support for an Indian effort to develop a strategic reserve of nuclear fuel to guard against any disruption of supply...

"India may take corrective measures to ensure uninterrupted operation of its civilian nuclear reactors in the event of disruption of foreign fuel supplies."

* MAIN OPERATIVE SECTION OF AGREEMENT

It resembles pacts the IAEA has with over 150 nations but tailored for a non-NPT state where IAEA rights are more limited. The other non-NPT nations are Pakistan and Israel, which also have military nuclear sectors off limits to outside monitoring.

* MISGIVINGS

Some Western nations fear the "corrective measures" clause could let India unilaterally cancel safeguards if foreign fuel supplies were cut off in response to another atomic bomb test.

IAEA inspections in any country are meant to apply "in perpetuity" unless ended by mutual agreement, which has never happened, but the plan appears to link them to constant fuel supply, which the IAEA cannot guarantee, critics say.

They say the draft blurs distinctions between civilian and military nuclear applications. A paragraph in the operative section says India may remove from IAEA purview "any special fissionable material" -- or bomb-grade -- separated from material produced in a safeguarded fuel reactor.

* RESPONSE

IAEA inspection and legal experts who negotiated safeguards coverage with India say it meets global standards and have recommended the 35-nation Board of Governors approve the plan.

The reference to corrective steps is "preambular language" reflecting India's special context and does not dilute the application of safeguards outlined in the operative section.

Board members generally see the extension of inspections to most Indian facilities as a net positive for non-proliferation, despite qualms about language tilted for India and, more broadly, opening the world nuclear market to a non-NPT state.

* WILL THE BOARD APPROVE THE AGREEMENT?

Yes, likely by consensus or overwhelming majority vote.

(Writing by Mark Heinrich in Vienna)