UPDATE 5-US says nuclear nations nearing deal on India trade

(Adds US holding extra evening talks, more revisions expected)

By Mark Heinrich

VIENNA, Sept 4 (Reuters) - The United States said on Thursday 45 nations were making headway towards agreement on lifting a ban on nuclear trade with India after Washington reworked a draft for the move to ease proliferation fears.

But no breakthrough came after an all-day meeting of the Nuclear Suppliers Group and U.S. officials negotiated separately well into the night with NSG holdouts in search of consensus, with further revisions to the draft expected, diplomats said.

Washington, racing to finalise a U.S.-Indian atomic energy deal, was trying to clinch a one-time waiver of NSG rules against doing business with states outside the Non-Proliferation Treaty (NPT) before the two-day NSG plenary ends on Friday.

Barring NSG action in early September, the U.S. Congress may run out of time to ratify the deal before it adjourns at the end of the month for elections, leaving the matter to an uncertain fate under a new president.

Ahead of the Vienna meetings, some in the NSG said initial changes made to the draft were "cosmetic" and did not allay concerns the deal could subvert treaties meant to stop the production or testing of nuclear weapons.

In a sign of its desire to save a major Bush administration initiative, Washington sent its No. 3 diplomat, Undersecretary of State for Political Affairs William Burns, to Vienna to head the U.S. delegation at the nuclear cartel gathering.

"We are making steady progress in this process and will continue to make progress," he said outside the closed meeting.