External Affairs Minister Pranab Mukherjee said New Delhi was still trying to find ways out of the face-off with the Left parties, who have threatened to end support if the deal is pursued, but did not indicate how a solution could be found.

"No, I have not given up," he said in an interview. "We are working on how we can proceed."

"Of course time is running out," said Mukherjee, who heads a joint panel formed to resolve the dispute between the Government and the Leftists.

"But one cannot help it. Either you lose majority and if a government loses majority nobody is going to have an arrangement with a minority government."

The India-US civil nuclear cooperation agreement aims to allow New Delhi to access American nuclear fuel and reactors by overturning a three-decade ban imposed after India conducted a nuclear test while staying out of the Non-Proliferation Treaty.

It is seen as the centerpiece of a new, strategic relationship between Washington and New Delhi. The government hopes it will help India meet its soaring energy needs.

But its Left allies have rejected the pact, saying it compromises India's sovereignty and draws it into the geostrategic influence of the United States.

The stand-off almost brought down the coalition government in October, prompting the Cabinet to put the deal on hold.

In November, the Leftists softened their opposition amid hectic negotiations and allowed conditional talks with the International Atomic Energy Agency (IAEA) to conclude a safeguards agreement needed to clinch the deal.

But they made yet another turnaround last month and asked the government to stop negotiations with the IAEA or prepare for elections, which are otherwise due in early 2009.

Besides the IAEA pact, the nuclear deal must win the approval of the 45-nation Nuclear Suppliers Group and the US Congress, preferably before the US legislative calendar is cramped by presidential polls later this year.

Mukherjee dismissed suggestions that the deal would be on the backburner as the communists could step up pressure after the Congress' poll losses, saying, 'their position is not linked with electoral successes and reverses'.