New Delhi, Nov. 16: The Left today allowed the Centre to hold talks with atomic watchdog IAEA for an India-specific safeguards agreement but not to finalise the pact.

The CPM and the CPI dismissed suggestions of a “climbdown” by saying they wanted the talks for nuclear co-operation with Russia and not the US, but the argument had few takers.

However, the Left retained its veto power. The UPA agreed at a meeting of the nuclear panel that the government would get back to the Left with the “outcome” of the IAEA talks before taking any further step.

Foreign minister Pranab Mukherjee, the meeting’s convener, said the panel’s findings would be taken into account before the text of the treaty was signed.

“We agreed to the IAEA talks in the context of Russia. We asked the government why it couldn’t sign a nuclear agreement with Russia and were informed that the safeguards agreement was a pre-requisite,” CPI secretary and panel member D. Raja said.

“Therefore, if the agreement opens the doors to do business with countries other than the US, it is worth pursuing.”

Delhi and Moscow recently put off an agreement on the sale of four nuclear reactors for Kudankulam until the Nuclear Suppliers Group cleared the Indo-US nuclear deal.

The RSP and the Forward Bloc were sceptical of the Russia argument.

When the four parties met before the panel sat, the smaller Left Front allies asked the CPM why it had changed its mind on the IAEA talks and whether its only concern was Russia. They also voiced annoyance at not being consulted. “There was no proper answer,” an RSP leader said.

The CPM and the CPI, however, assured the smaller parties in “no uncertain terms” that the Indo-US deal would not “materialise, come what may”, the RSP member said.

“As far as we are concerned, the net result matters — and that is that the deal will not be operationalised.”

At the Left Front meeting, however, leaders expressed concern over what might happen if and when the communists vetoed the deal.

“Suppose we say ‘no’ to the IAEA outcome. The government will suffer a further loss of face. The Congress could then seriously consider an election,” a Left source said.

The Congress was not rejoicing over today’s decision. “It’s a step forward,” a panel member said, but rejected Raja’s argument de-linking the IAEA talks from the 123 Agreement. Clause 6(b) of the agreement, he said, required India to negotiate with the atomic agency.

PTI quoted national security adviser M.K. Narayanan as saying: “The Prime Minister called me up and I should think his mood is upbeat.”