Prime Minister Atal Behari Vajpayee told a campaign rally in the Taj Mahal town of Agra that Musharraf was simply employing the "old tactics of Pakistan to mislead the world community."

An Indian foreign ministry spokesman scoffed at Musharraf's statement, describing it as propaganda.

"We have rejected the allegation as absolutely false, totally baseless and this is obviously the season for kite-flying in Pakistan," spokeswoman Nirupama Rao said.

India shocked the world in May 1998 when it conducted a series of nuclear weapons tests. Despite intense foreign pressure, Pakistan followed suit, raising the terrifying prospect of a nuclear war between the arch-rivals.

While refusing to sign up to the Comprehensive Test Ban Treaty, India has declared a voluntary moratorium on further nuclear testing.

"That continues to be our policy," Rao said.

"We have seen a number of such false allegations made (by Pakistan) in recent days and we reject them in their entirety and they can be best be described as timed-release capsules of diversionary propaganda."

Musharraf had said in Washington on Tuesday that he had seen "indications" of a possible new nuclear test by India, which had flight-tested its nuclear-capable Agni missile on the eve of its January 26 Republic Day military celebrations.

"The missile test carried out by India and some information, some news even, of maybe a possibility of a nuclear test is most untimely and may I also say provocative," Musharraf said.

"I can't give conclusive evidence of it, but I thought if at all there was a possibility, it should be checked," he said.

Musharraf did not elaborate, nor did he provide proposed dates or locations of the alleged test or if it was merely planned or had taken place.

"Whatever way, the allegations are false," Rao told AFP.

Indian and Pakistani nuclear capability has been thrown into sharp relief by the current military tensions between the neighbours, who have massed hundreds of thousands of troops on their border in the wake of a December attack on the Indian parliament.

Indian blamed the attack on two Pakistan-based militant groups.

Despite a landmark speech by Musharraf last month in which he banned five militant groups and instigated a crackdown that led to the arrest of around 2,000 alleged religious extremists, India has insisted that Pakistan has not done enough to warrant a de-escalation at the border.

Both sides claim to have no desire for war and have all but ruled out the possibility of any kind of nuclear exchange.

However, border tensions remain high with frequent exchanges of fire that carry the threat of escalating into full-scale conflict.

India and Pakistan have fought three wars since independence from British rule in 1947.

Musharraf was due to hold talks with President George W. Bush later Wednesday and was expected to push for some sort of US mediation in the bitter Indo-Pakistan dispute over Kashmir.

"I personally feel the United States is the only country which can play a role in this," Musharraf told CNN late Tuesday.

India, however, remains firmly opposed to any outside intervention in what it deems to be a purely bilateral matter.

"There is no room, no space, and no need for a third-party mediation or the need of another country to resolve outstanding bilateral issues," Rao said.

Musharraf Does DC
President George W. Bush on Wednesday delivered a warm personal endorsement of visiting Pakistani President Pervez Musharraf, praising the "courage" and "vision" of a man he was proud to call friend.

Musharraf, paying a highly symbolic visit to the White House, less than five months after signing up for the US anti-terror campaign under fierce pressure, condemned Indian "aggression" and said he hoped a US journalist held hostage in Karachi was still alive.

Flanked by Musharraf, before a backdrop of US and Pakistani flags, Bush recalled he had forced Pakistan to choose between its ties with Afghanistan's former Taliban rulers and its relations with Washington after September 11 terror attacks.

"The president made a tough decision and a strong decision. It's not only a decision about fighting terror; it's a decision for the direction of his country, and we support that strongly," said Bush.

Related Links SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express NUKEWARS "Sunshine" cannot cultivate North Korea's dry field: US  Washington (AFP) Feb 14, 2002 A senior US official on Thursday warned that South Korean President Kim Dae-Jung's policy of engaging North Korea was doomed without reciprocal measures from Pyonyang, lamenting: "Sunshine cannot cultivate a dry field."