India vote debate adjourned over bribery charges

NEW DELHI (Reuters) - A vote of confidence debate inIndia's parliament on Tuesday was adjourned after oppositionlawmakers interrupted the session and waved wads of cash theysaid were offered as bribes to abstain.

The government is scheduled to face a confidence vote lateron Tuesday that will decide the fate of a civilian nuclear dealwith the United States and could trigger a snap election.

Television channels estimated the Congress-led coalitionthat negotiated the deal would sneak home by half a dozen ormore votes against its former communist allies and oppositionparties led by the Hindu-nationalist Bharatiya Janata Party(BJP).

But it was unclear when and if the vote would be held afteropposition MPs interrupted proceedings by brandishing wads ofcash, and demanding an inquiry.

"This is not a case of corruption for a small favour. Thisis an important event for the House," BJP leader Lal KrishnaAdvani told reporters outside parliament. "I have to say thatthe House has to seriously take it up."

Advani alleged the three opposition MPs were given a totalof 10 million rupees (116,000 pounds) by government supportersas an advance payment for abstaining, and were offered muchmore.

Congress said the allegations were baseless.

"This is all a drama, and it has been planted deliberatelyby the people who know they have lost the vote," said Congressspokesman Ashwini Kumar. "We are seriously looking into theallegations but the opposition knows we will win so they areresorting to such activities."

Accusations of horse-trading have swirled for days as bothsides try to attract the support of smaller, regional orcaste-based parties.

MARKETS RALLY

Investors are expecting a narrow win for the government,and bookmakers also favour the government.

That feeling has helped shares recover after a string oflosses, the main share index rising by more than 10 percent inthe last three sessions and a further 1.8 percent on Tuesday.

If the government falls there will probably be an electionthis year. It is also likely to lead to the scrapping of thecivilian nuclear agreement and throw economic policy into limbojust as inflation rises to a 13-year-high.

Prime Minister Manmohan Singh moved the confidence motionwith a brief address on Monday, and is scheduled to make a fulldefence of the nuclear deal and his government's record in aconcluding speech.

But that speech, expected around 5 p.m. (12:30 p.m. Britishtime), is now likely to be delayed.

Finance Minister Palaniappan Chidambaram, in a speechfrequently interrupted by shouting from the opposition benches,defended the government's record and said nuclear power wasvital if the country was to emulate the economic success ofChina.

"This government under Dr. Manmohan Singh's leadership ischarting out a new path which will end India's nuclearisolation, which will pave the way for India becoming aneconomic superpower," he said. "I ask this house to give aresounding vote of confidence."

The nuclear deal would grant India access to foreignnuclear fuel and technology, unlocking $40 billion (20 billionpounds) in investment over the next 15 years, according to anIndian business lobby group.

But the communists withdrew their support for thegovernment in protest over the deal, saying it made India apawn of Washington. The BJP says the nuclear deal limitsIndia's ability to test nuclear weapons.

The vote is so close several MPs who are ill were beingflown or wheeled in on hospital beds, and others, in jail forcrimes such as murder and extortion, have been grantedtemporary release and arrived at parliament on Tuesday inprison vans.

A government defeat would be a boost for the BJP, which haswon a string of state elections this year against a backdrop ofrising inflation and criticism that millions of poor Indianswere not benefiting from the booming economy.

It would also boost the standing of Mayawati, leader of anincreasingly influential party drawing much of its support fromDalits, formerly known as "untouchables".

Mayawati is trying to project herself as a third force andpossible prime minister and has tried to wean away votes fromthe government.

BJP leader Advani said his party did not oppose nuclearcooperation or a strategic relationship with the United States,but said the nuclear deal made India "a subservient partner".

(Editing by Alistair Scrutton)

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