India government looks set to avoid early elections

By Bappa Majumdar

NEW DELHI (Reuters) - Facing the likely withdrawal of left allies, India's government moved closer on Friday to clinching political support it needs to avoid early elections and to force through a nuclear energy deal with the United States.

Prime Minister Manmohan Singh and his senior officials spent the day meeting with leaders of a key regional party, who gave their strongest hint yet they will back the Congress party-led ruling coalition in parliament if the communists walk away.

The Samajwadi Party (SP), a key regional party from Uttar Pradesh state, has a history of pragmatic alliances with national parties and would be burying years of bitter relations with Congress if it comes to the rescue.

"The prime minister's clarifications on the nuclear deal are quite satisfactory," SP General Secretary Amar Singh told reporters after meeting the prime minister.

Soon after, the four communist parties that give the coalition a majority in parliament said the government must tell them by Monday if it plans to press ahead with the next step in finalizing the civilian energy deal, which they strongly oppose.

With time fast running out, the government needs to seek approval for the deal from the International Atomic Energy Agency (IAEA), the next international move needed to make the agreement operational.

"We wish to know definitely whether the government is proceeding to seek the approval of the safeguards agreement by the board of governors of the IAEA," said Prakash Karat, head of the Communist Party of India (Marxist), reading out a letter addressed to the government.

"Please let us know the position by July 7, 2008."

The left says the pact will make India a pawn of Washington, while critics argue their strident opposition is more due to an ideological dislike for the United States.

The pact, which would give India access to U.S. nuclear fuel and technology, is potentially worth billions of dollars to U.S. and European nuclear supplier companies and would give India more energy alternatives to drive its development.

Analysts say it would shift trade and diplomatic ties towards the West.

The communist party said it would launch a national campaign from July 14 to explain its opposition to the nuclear agreement and to policies it holds responsible for what it called "runaway" inflation.

The ruling Congress party replied sternly to the deadline.

"The entire track record of the UPA government has been an utmost transparency," said Congress spokesman Abhishek Singhvi, referring to the United Progressive Alliance (UPA) coalition.

"But that does not mean sovereign governments or political parties can be subjected to deadlines of short time limits."