India's ruling Congress party and its communist allies are at loggerheads over the issue, with neither side willing to back down.

Early elections could be on the cards if the Marxists refuse to give way, as they provide crucial support to the government in parliament.

The four leftist parties have bluntly warned of "serious consequences" if the deal goes ahead.

It is the worst political crisis Prime Minister Manmohan Singh has faced in four years in office. But he too has refused to back down.

"It's a gridlock as neither the communists nor the Congress wants to blink as of now," said political analyst Pran Chopra.

The communists say the deal, the details of which were disclosed on August 3, sells out India's sovereignty -- including the right to carry out nuclear tests -- to the United States.

The main opposition Hindu nationalists are demanding a full, all-party parliamentary committee inquiry into the accord, which offers long-denied Western nuclear technology to power-starved India.

Officials have flailed around for a compromise to cool angry voices, but Congress on Monday came up with nothing better than a committee of diplomats and experts to investigate the so-called 123 agreement.

Opponents have noted that while the US Congress will vote on the accord, India's parliament will have just a debate.

Before that, the left wants to block New Delhi from opening talks with the International Atomic Energy Agency, the next step towards implementing the deal.

"The situation is where it is and it is now up to them (Congress)," Communist Party of India (CPM) politburo member Sitaram Yechuri told reporters Monday.

"We have told the government to keep the whole thing on hold until our objections are properly evaluated," he said.

Some analysts warned the rift between the coalition allies was too wide to bridge.

"It is now difficult for either party to back down and in one sense they are victims of the positions they have publicly taken," warned Bharat Karnad, an analyst with the Centre for Policy Research, an independent think-tank.

"And as nobody is ready for mid-term elections and so as an interim placatory measure this government may think of throwing the prime minister to the lions," Karnad warned.

Political analyst Chopra demurred, saying the left cannot afford to topple Singh's government.

"The communists have the best deal in this arrangement where they enjoy power but share no responsibility," he said.

He predicted both sides could yet find "an honourable, face-saving solution."

The accord was trumpeted as a post-Cold war re-alignment during a 2005 visit by US President George W. Bush to New Delhi, but India's media is now divided over the issue too.

The Times of India warned of global isolation if New Delhi walks away from the deal, which the Indian Express has strongly supported.

The Hindu ran an editorial called "Put the deal on hold" and Asian Age editor-in-chief M.J. Akbar has demanded early elections.

"The Congress government must now accept the majority view in parliament as the final word ... and back off from a deal that is not acceptable to the nation," the Age said Monday.

However, a top US official last week said the pact could not be renegotiated and Singh has agreed.

"The agreement is done. Neither government wishes it to be renegotiated because it is now complete," under secretary of State Nicholas Burns said.

Singh warned Monday that India cannot sustain its blistering nine-percent economic growth without more nuclear energy.

India has plans to jack up nuclear power generation from the current three percent of total energy output to 20 percent by 2050 with the help of the deal.

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