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PM says India has right to arms tests despite U.S. nuclear deal -1

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(Recasts lead, adds para 2, details, background in paras 4-9)

NEW DELHI, August 13 (RIA Novosti) - India's prime minister said Monday a long-delayed nuclear cooperation deal with the United States approved by the Cabinet in July did not restrict New Delhi's "sovereign right" to conduct nuclear weapons tests.

The agreement, which allows India to buy nuclear equipment and fuel from the U.S., does not need parliamentary approval. But Singh moved to allay lawmakers' fears that the deal would undermine the country's "sovereign right" to pursue nuclear weapons.

"The agreement does not block or restrict our capabilities in the nuclear sphere," Manmokhan Singh said.

The accord, which was agreed in principle by the world's largest democracies in 2005, is expected to boost bilateral economic ties, but some of its aspects have yet to be approved by the U.S. Congress, the International Atomic Energy Agency (IAEA) and the 45-nation Nuclear Suppliers Group.

The bodies might question plans to supply nuclear technology and fuel to a country that is not a signatory to the Nuclear Non-Proliferation Treaty and has conducted nuclear bomb tests.

The deal has been stalled for two years mainly over India's insistence on the right to reprocess spent nuclear fuel and on the possibility of conducting tests in the future. India is currently under a self-imposed moratorium on nuclear bomb tests.

Under the new deal, Washington may reportedly cut off supplies in the event of a test. The agreement was also reported to allow India to reprocess U.S. nuclear material in UN-monitored facilities to ensure it is used for civilian purposes.

Singh has been under pressure from the opposition and the military over the deal, which they fear could limit the country's defense capabilities.

As the premier spoke, several dozen opposition lawmakers stood in front of the rostrum shouting slogans against the nuclear accord.

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