"We will certainly want to discuss the energy needs of India," Rice said in an interview with NDTV before meeting senior Indian officials.

"I understand that this is a growing, in fact burgeoning economy, and like the United States, we are all concerned about how we will meet our energy supply over the next decades and do that in a way that is clean for the environment."

The United States had been reluctant to sell civilian nuclear technology to India because of proliferation concerns, but Rice said under the Next Steps in Strategic Partnership, or NSSP, dialogue between the two countries, the United States was prepared to discuss all issues, including the sale of civilian reactors.

"We can certainly discuss anything in this new relationship, and I think we will want to discuss this issue," she said. "There have been ... proliferation concerns, but this is something that I think we can certainly discuss."

The move is likely to be appreciated in New Delhi, which is keen to move close to Washington. Relations between the two countries were tense for much of the Cold War when Washington allied itself with Pakistan and India to the Soviet Union.

President Clinton's visit to the country in his second term opened up ties and President Bush has strengthened that relationship to include defense and technology cooperation.

Washington has wanted to emphasize that its relationship with India is distinct from its ties with Pakistan, a traditional ally and a key partner in the "war on terror."

Rice's offer on nuclear cooperation with energy-hungry India is likely to gain significance given the U.S. opposition to New Delhi's deal for a gas pipeline from Iran. The $4.5 billion deal is expected to be signed in June.

The 1,700-mile pipeline would originate at Assaluyeh, Iran, and terminate at the Indian border, somewhere in the western state of Rajasthan, with a tap-off point at Multan in Pakistan. The project is expected to be completed by 2010-2011.

The gas pipeline is a testament to rapidly improving India-Pakistan ties, which have been strained by decades of mistrust and the occasional war. It also is a proof of close Indo-Iranian relations.

The United States has not had ties with Iran since 1979 and has most recently accused it of trying to illegally use its civilian nuclear program to make weapons. Tehran denies that charge.

Washington has now backed a European effort to persuade Iran to give up its uranium enrichment program, a process Tehran is allowed under its international commitments.

Bush said Wednesday if Iran did not accept an offer of incentives, including civilian airline parts and a possible World Trade Organization, it will be taken to the U.N. Security Council for further action.

In New Delhi, Rice and her Indian counterpart, Natwar Singh, did not shy away from expressing their respective countries' view of the pipeline deal.

"We have communicated our concerns about the gas pipeline cooperation between India and Iran," Rice said after meeting Singh. "Those concerns are well known to the Indian government."

Singh said Indian had "no problems" with Iran, but Indian officials acknowledge the deal will become difficult should Iran come under further U.S. and international sanctions. Even as Singh spoke, however, Indian Petroleum Minister Mani Shankar Aiyar was in Islamabad, Pakistan, to discuss the deal with Iranian and Pakistani officials.

The agreement with Iran is part of a major energy push by India, a country whose economy is growing by approximately 6 percent to 7 percent a year.

The energy-starved nation relies on imports for more than 70 percent of its energy requirements and is expected to need some 14 billion cubic feet of gas per day by 2025, up from 3.2 billion cubic feet now.

The pipeline deal with Iran should assuage some of that concern, but Rice's comments on civilian nuclear technology are likely to give Indian policymakers pause.

Overall, the Indians must view Rice's visit as a positive one for New Delhi. There was no mention of an expected announcement of a sale of F-16s to India and its rival Pakistan. Pakistan has wanted the planes for many years and has even paid for 70 of them, but U.S. law and Indian objections have resulted in an impasse. Indian military officials said they were "curious" about the deal.

The Economic Times, India's largest financial newspaper, reported, however, that Rice may have offered New Delhi co-production of defense equipment, including F-16s, a move that is likely to irk Islamabad.

New Delhi was Rice's first stop on a six-nation tour that also takes her to Pakistan, Afghanistan, China, Japan and South Korea.

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