Indian MPs slam government over U.S. nuclear deal

NEW DELHI (Reuters) - Indian lawmakers opposed to a landmark nuclear energy deal with the United States slammed the government in parliament on Wednesday, saying it was misleading the country and compromising national interest.

The criticism came during a long-awaited debate in parliament on the controversial deal, which brought Prime Minister Manmohan Singh's three-and-a-half year coalition to the brink of collapse last month.

The debate was not intended to end in a vote on the deal. Nor did it resolve the controversy one way or the other, amid fears time is running out for the agreement as President George W. Bush's term in office nears its end.

But with Singh refusing to speak during the debate, and defend the deal as expected, some analysts said it signaled his ruling Congress party's desire not to further alienate its communist allies.

The latter have rejected the deal, threatened to end support to the coalition and raised the prospect of early elections.

"Please take the sense of the house, don't proceed further, because a majority of this sovereign house is against this," said Rupchand Pal, an MP of the Communist Party of India (Marxist), the largest of four left parties in parliament.

"The prime minister's assurances with regard to all the reservations we have made ... most have been trampled ... our apprehensions have been proved true repeatedly," he said.

The nuclear pact aims to end more than three decades of sanctions against nuclear commerce between New Delhi and Washington even though India has stayed out of the Non-Proliferation Treaty (NPT) and tested nuclear weapons.

"SHADOW-BOXING"

Proponents of the pact say it will help meet India's soaring energy needs and is a sign of a growing strategic friendship between New Delhi and Washington.

"This agreement will provide us a passport to enter into agreements on nuclear trade with a host of other countries," Foreign Minister Pranab Mukherjee said.

Communist allies of prime minister Singh, known for their traditional anti-Americanism, have rejected the deal saying it compromises sovereignty and imposes U.S. influence.

The Hindu nationalist opposition, which supports close ties with Washington, also says it compromises India's nuclear weapons program as it indirectly prevents New Delhi from conducting nuclear tests.

"We are being pushed into this non-proliferation regime because we need nuclear energy," said L.K. Advani, leader of the Hindu nationalist Bharatiya Janata Party (BJP). "They are taking advantage of this."

After India secures an IAEA safeguards agreement, the deal needs the backing of the Nuclear Suppliers Group of nations and has also to be approved by the U.S. Congress.

Indian political analysts said they did not expect much movement until elections next month in the western state of Gujarat, where the Congress party is hoping to pull off an upset win over BJP, which holds the state.

"All this is shadow-boxing," said Mahesh Rangarajan, an independent analyst.

"The Congress cannot afford to step back right now from the deal. And the left is not going to come out in support."

(Editing by Alistair Scrutton and Sanjeev Miglani)