US Congress approves India nuclear bill

WASHINGTON, Dec 9 (Reuters) The US Congress early today took a major step toward permitting the sale of American-made nuclear reactors and fuel to India by giving final approval to a White House-backed bill.

The Senate approved the measure unanimously following its passage late yesterday by the House of Representatives, 330-59.

It now goes to President George W Bush for his signature.

The Bush administration and its allies contend that civil nuclear commerce to expand electricity generation in India will foster a broad range of ties with the world's largest democracy -- a rising South Asian power -- and open up billions of dollars in trade for US companies.

Critics decried the bill as a historic mistake that would undermine US efforts to curb the spread of nuclear weapons.

Other critical approvals -- by Congress a second time, the International Atomic Energy Agency and the 45-nation Nuclear Suppliers Group -- are needed before the agreement can take effect. That will not happen before some time next year.

Republican Rep Henry of Illinois, chairman of the House International Relations Committee, voiced hope the measure will mark ''the beginning of a new and ever-closer relationship between the world's two largest democracies, the United States and India.'' The deal reverses 30 years of US policy that, until July 2005, opposed nuclear cooperation with India because the country developed nuclear weapons in contravention of international standards and never signed the Non-proliferation Treaty, or NPT.

MORE REUTERS PB BST1400