Rediff

New Delhi, Jul 22: Finance Minister P Chidambaram on Tuesday said that the Hyde Act, passed by the US Congress to enable nuclear commerce with India, was a matter of domestic law in that country and had no binding on India.

Taking part in the discussion on the confidence motion moved by Prime Minister Manmohan Singh on Monday, Chidambaram emphasised on the need for nuclear power.

The provisions of the 123 Agreement will alone will prevail in regard to the Indo-US nuclear agreement, he said, adding that the government went to the International Atomic Energy Agency after an agreement with the Left parties and froze the text.

Government did nothing to violate this agreement, he asserted.

The finance minister said the text of the draft safeguards agreement was promised to be given to parties the day India went to the IAEA and that was done.

"We are only carrying forward the exercise done by the National Democratic Alliance government in engaging with the US on nuclear issue," Chidambaram said, adding, "The question is do we want to come out of nuclear isolation."

He also stated that Bharatiya Janata Party and NDA too wanted end of nuclear isolation of India but no one was clear about the Left parties' stand on it.

Highlighting the achievements of the UPA government, Chidambaram said rice production rose to a record 96.43 million tonnes in FY 2007-08, wheat at 78.4 mt, coarse cereals at 40.7 mt, pulses at 15.1 mt, oil seeds at 28.82 mt and cotton at 21.81 million bails.

The finance minister also claimed that economy will grow at 7-8 per cent during current fiscal.