VIENNA, Aug 1: Governors of the International Atomic Energy Agency (IAEA) approved an inspections plan for India by consensus on Friday, a key step towards finalising a US-Indian nuclear cooperation deal, diplomats said.

The accord would open up to India the world market in atomic materials and technology for civilian use, but is controversial since New Delhi has conducted nuclear test explosions and never joined the Non-Proliferation Treaty (NPT).

With the go-ahead from the IAEA, Washington must persuade the 45-nation Nuclear Suppliers’ Group (NSG) to grant a waiver allowing trade with a non-NPT state and then get US Congress ratification to sew up the deal.

The initial NSG meeting on India was expected on Aug 21-22, diplomats said.

IAEA’s director told the governors that the inspections scheme met non-proliferation safeguards standards and talks had begun on a system of more intrusive, short-notice checks.

The “umbrella safeguards agreement” applies to India’s 14 declared civilian nuclear reactors, among the total of 22.

IAEA Director General Mohamed ElBaradei touched on diplomatic concern that parts of the draft blurred divisions between civil and military atomic sectors, with a possible loophole allowing India to transfer bomb-grade fuel separated from civilian stocks to its military programme.

“These are not comprehensive or full-scope safeguards (unlike with NPT member states)...,” he said.

“(But) it satisfies India’s needs while maintaining all the agency’s legal requirements,” he told the closed meeting.

“As with other safeguards agreements between the agency and member states, the agreement is of an indefinite duration. There are no conditions for discontinuation... other than those provided by the safeguards agreement itself,” he said.

Some diplomats were concerned such language might allow India to halt inspections unilaterally if nuclear fuel imports were cut off, for example in response to another nuclear test, although India is observing a voluntary moratorium.

“There were many statements of support for the plan but also many statements with concern and questions, but no one openly opposed it,” said a diplomat.

India faces a tougher sell at the NSG, a cartel formed in response to its 1974 nuclear test to limit trade in “trigger list” nuclear items to NPT member states with good non-proliferation records.

Diplomats said India’s pursuit of an unconditional NSG exemption could face likely demands by some members for a binding pledge of no more nuclear tests and significant progress towards implementing an additional protocol.

“The US put undue pressure on many countries not to raise concerns, but they were raised today,” said a European diplomat.—Reuters