Key Indian party still has doubts over nuclear deal

NEW DELHI-A regional party that could hold the balance of power in India said on Thursday it had to clear up doubts before supporting a nuclear deal with the United States, but hinted it may give crucial backing to the embattled government.The ruling coalition is wooing the Samajwadi Party (SP) amid signs the communist parties that back the government in parliament will withdraw their support over the civilian nuclear deal. Many Indian politicians worry the deal will compromise India's sovereignty. The left says it makes India a U.S. pawn."We need to clear all doubts on the nuclear deal," Amar Singh, Samajwadi Party general secretary, told reporters.If Prime Minister Manmohan Singh fails to secure Samajwadi support and the left ends its support, his government will likely face a snap election this year.The ruling coalition already faces other challenges, including an indefinite strike by truckers to protest against rising fuel prices. The strike threatens to push record inflation higher and choke off supplies of some basic goods in the sputtering trillion-dollar economy.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.It is also seen as a landmark accord moving India's trade and diplomatic relations closer to the West. Hours after the SP's Singh's statement, party leaders met former President A.P.J. Abdul Kalam, seen as the father of India's missile program and a highly respected proponent of the deal. SP leaders hinted Kalam's support could sway them.

http://www.reuters.com/article/worldNews/idUSISL24412720080703

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