WASHINGTON, March 24: Problems confounding the Indo-US nuclear deal also surfaced in the high-level talks between the two countries in Washington on Monday when Indian External Affairs Minister Pranab Mukherjee acknowledged that his government was facing “political problems” that prevent it from finalising the agreement.

US Secretary of State Condoleezza Rice assured him that the United States would continue to work on the project, indicating that Washington is keener on concluding the deal than New Delhi.

“We are interested in implementing the landmark agreement,” Mr Mukherjee told reporters after a 30-minute meeting with Ms Rice at the State Department. “But now we have some political problem. Currently we are engaged in the process of resolving them.”

Conveying Washington’s desire to take the deal forward, Ms Rice said it is a “landmark agreement which is good for both sides....we will continue to work on that agreement.”

On talks with the International Atomic Energy Agency on India-specific safeguards agreement, Mr Mukherjee said the discussions are over. “The agreement is yet to be initialled and approved by the board of governors of the IAEA.”

India needs to firm up the agreement with the IAEA and secure changes in the 45-member Nuclear Suppliers’ Group.

Although initiated more than two years ago and already endorsed by the US Congress, the deal ran into trouble when communist allies of the Indian government threatened to withdraw from the coalition if the agreement is implemented.

Both Washington and New Delhi want to finalise the deal before a new administration enters the White House early next year.

Mr Mukherjee is meeting US President George W. Bush and the National Security Adviser Stephan Hadley as part a major effort to reach a conclusion before the White House has new tenants.