India-IAEA pact close, but U.S. nuke deal clouded

NEW DELHI (Reuters) - India is close to finalising the text for an agreement with the International Atomic Energy Agency, but may fail to save a nuclear deal between New Delhi and Washington that remains clouded in political uncertainty.

The nod of the IAEA is among several mandatory clearances required for the contentious India-U.S. nuclear pact that will give India access to American nuclear fuel and technology.

Foreign Minister Pranab Mukherjee said talks had concluded with the IAEA and an agreement could be reached.

A source familiar with the India-IAEA talks in Vienna said a final text was close, but India still needed to confirm that there is an agreement on the text.

"Until then there is in fact no agreement," the source said on Sunday.

India's confirmation has been held up because the communist allies of the government oppose the nuclear deal, threatening to bring down the coalition government if it went ahead.

Mukherjee has so far stayed away from a showdown with the communists, saying the government would not move on the deal without the support of the leftists.

Caught up in India's domestic politics, time is running out for the deal. Still to come are clearances from the IAEA board of governors and the 45-nation Nuclear Suppliers Group.

Then, the deal goes to the U.S. Congress for final approval.