India and the United States on Friday announced the finalisation of the agreement for civil nuclear cooperation which offered ''enormous strategic and economic benefits'' to both the countries.

The announcement, described as a 'historic milestone' by the two countries, was made in a joint statement issued by External Affairs Minister Pranab Mukherjee and US Secretary of State Condoleezza Rice.

The finalisation of the text would now permit the two countries to move forwaqrd on the US-India civil nuclear cooperation initiative, first announced by Prime Minister Manmohan Singh [Images] and US President George Bush [Images] on July 18, 2005 and reaffirmed on March 2, 2006.

Addressing a press conference in New Delhi on Friday, National Security Advisor M K Narayanan said the Indo-US nuclear deal fulfilled the terms outlined by Prime Minister Manmohan Singh in Parliament on August 17.

Negotiators of both the countries understood the limit of possibilities and how far to go to get the best deal, Narayanan said.

"We have got a very good deal, which we believe should meet individual legal requirements of both the countries," he said.

Chairman of Atomic Energy Commission Anil Kakodkar, who had earlier had certain misgivings over certain aspects of the deal including reprocessing right, expressed happiness over the agreement.

Noting that he could have a 'huge wish-list,' Kakodkar said the objective was to meet the parameters of July 18,2005 understanding.

"If the question is whether it is consistent with that (understanding), the answer is yes," he said.

Asked whether there were any corrective measures in the 123 agreement in view of a clause in the Hyde Act that spoke about snapping of cooperation if India conducts nuclear test, Narayanan said, "This is an agreement between two governments. It needs the consent of two governments and those governments are bound their own laws, it is for them to understand whether this agreement meets their laws or not."

He said it was not for India to 'interpret their (US) laws or them (US) to interpret ours. This serves the interest of both sides.'

Kakodkar said the benefit of the agreement will start from the first reactor that will arrive in India and New Delhi will have the right to reprocess spent fuel and reuse it for other purposes.

Asked about denial of reprocessing technology by the US, Kakodkar said the agreement would allow India to 'derive full benefit out of reactor and the associated fuel cycle activities and a kind of uninterrupted chain.'

He said India has full capability in all areas.

"So, what is important is that we are able to derive full benefit out of whatever cooperation from outside and we do not have any issue left in terms of what will happen to spent fuel and things like that," he added.

On denial of reprocessing technology by the US, Narayanan said, "We would have liked some of the technologies, which are yet to come and they would require further discussions. There are issues, which we would have liked but we have settled for something which, we think, is more than adequate than what we wanted. We are hopeful that in course of time whatever is living would be available."

When referred to opposition to the deal by some US Senators, Narayanan said he could not speak on behalf of individual Congressmen 'because we dealt with the US administration and they know where they can go.'

Foreign Secretary Shiv Shankar Menon, who was also present at the press meet, hoped that India will get unconditional exemption from Nuclear Suppliers Group's guidelines on fuel supplies.

Menon clarified that there were no conditions attached with the deal. "This was an agreement on civil nuclear cooperation and we did not negotiate anything else," he said.

On criticism that India has mortgaged its right to conduct nuclear tests to the US, Narayanan said, "We have not mortgaged any right. If anything, we have only enhanced our right."

On apprehension in the West that India will use the civil nuclear cooperation to enhance its strategic programme, he shot back, "If we need additionality to our strategic stockpile, we know how to do it. We don't need to use this route for it."

"This agreement is intended primarily for civil nuclear cooperation. We are not using it as an excuse to enhance our strategic capabilities. The earlier these countries forget that, the better it is."

In a joint statement by External Affairs Minister Pranab Mukherjee and US Secretary of State Condoleezza Rice released simultaneously in New Delhi and Washington, the two sides described said the deal marks a 'historic milestone' in the bilateral strategic partnership.

This agreement will govern civil nuclear trade between our two countries and open the door for American and Indian firms to participate in each other's civil nuclear energy sector.

The conclusion of negotiations on this agreement marks a major step forward in fulfilling the promise of full civil nuclear cooperation as envisioned by President Bush and Prime Minister Manmohan Singh, the release stated.

The next steps include India's negotiation of a safeguards agreement with the International Atomic Energy Agency and support for nuclear trade with India in the forty-five member Nuclear Suppliers Group.

Once these additional actions have been completed, US President George Bush will submit the text of the agreement to US Congress for final approval.

Civil nuclear cooperation between the United States and India will offer enormous strategic and economic benefits to both countries, including enhanced energy security, a more environmentally-friendly energy source, greater economic opportunities, and more robust nonproliferation efforts, the release stated.

With UNI Inputs