India, U.S. reach breakthrough on civil nuclear deal

Indian Prime Minister Narendra Modi and visiting U.S. President Barack Obama said on Sunday that the two countries have reached an agreement to break a six-year impasse on the landmark civil nuclear deal.

"The civil nuclear deal was the centerpiece of Indo-U.S. understanding. Six years after we signed a bilateral agreement we are moving towards commercial viability," Modi said at a joint press conference with Obama.

"In the past four months, we have got a sense of purpose to move it forward. The success of this partnership is crucial to advancing peace and prosperity," he added.

The Indo-U.S. civil nuclear deal was drafted in 2008, but had been stalled over tough provisions in this country's liability act.

Though Modi did not clearly say whether the nuclear deal has been finally inked, President Obama was more categorical after differences were ironed out. "We have achieved a breakthrough understanding on the civil nuclear deal," he said.

Sources said Washington wants to track the whereabouts of nuclear material it supplies to New Delhi. But India insists the demand is intrusive, given the International Atomic Energy Agency safeguards.

Moreover, some U.S. companies also have concerns about having to pay huge compensations in case of a nuclear accident. But India says it's obliged according to the provisions of its Civil Nuclear Liability Act.

During his visit to the United States in September, Modi and President Obama had decided to set up a high-level contact group on civil nuclear cooperation.

The group has held three rounds of detailed discussions on a range of implementation issues -- administrative, liability, technical and licensing -- to facilitate the establishment of U.S.- designed nuclear power plants in India.

Obama arrived in the Indian capital earlier in the day for a three-day tour, during which he will attend the Republic Day celebrations on Monday.

He is not only the first U.S. president to visit India twice in his tenure, but the first American leader to be a chief guest at the Republic Day celebrations.