FACTBOX: India's draft nuclear inspections pact with IAEA

(Reuters) - India has submitted a draft nuclear inspections plan to U.N. atomic watchdog governors for approval, a crucial step towards finalizing a 2005 deal giving it access to U.S. nuclear fuel and reactor technology.

If governors pass the draft, 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 the total of 22 -- subject to regular IAEA non-proliferation inspections is a precondition for nuclear trade with the United States and others in the NSG.

India has been barred from such commerce for having never joined the NPT and test-detonating a nuclear device in 1974, an act that led to the creation of the NSG to stem the spread of proliferation-sensitive technology.

* KEY PASSAGES IN PREAMBLE OF AGREEMENT

"India will place its civilian nuclear facilities under Agency safeguards so as to facilitate full nuclear cooperation between India and member states of the agency and provide assurance against withdrawal of safeguarded nuclear material from civilian use at any time.

"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 adjusted for a non-NPT state where IAEA access is more limited. The other non-NPT nations are Pakistan and Israel, which also have military nuclear sectors off limits to U.N. monitoring.

* CRITICISM

Some disarmament advocates see loopholes. They cite the "corrective measures" clause which they say suggests India could cancel safeguards if foreign fuel supplies were cut off in response to an act like another nuclear bomb test. That would cripple the IAEA's mandate to keep civilian reactors from being diverted to augment India's stockpile of nuclear bomb fuel.

Critics also are concerned by the lack of reference in the agreement's annexe to reactors subject to inspections.

* 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.