Vijay,
Your proposal may not work, because you may find that you are unable to boot from the partition containing the 'image' of your original HDD. First check that you have an identical copy - clone of the original - not some encoded image, though you may (should) be able to reconstitute the original onto the hard disk partition with Image XML if this is the case.
Second, you may still not be able to boot from that partition (this where my knowledge runs out) as I thought that the boot sector of a HDD was always sector 0. This sector would occupied by the W7 installation, so you would not have a sector 0 to boot from in your partition. However, it might be that each partition, or logical drive (if they're the same, I'm not sure), anyway each logical drive has its own sector numbering, starting at 0, so you would be OK if your BIOS enables you to choose which logical disk to boot from.
On my XP system, the BIOS will not boot from an XP USB connected HDD (but might from a USB connected HDD with Linux or W7) and does not offer the ability to boot from logical disks, only discrete physical HDDs (of which my m/b supports only 2) or an optical drive (CD) [I could, it seems, boot from a 'card', I assume a PCI mounted HDD is meant, but as I don't have one that's irrelevant and I've never tried].
A further anecdote is that I have just finished cloning (for back-up purposes) a HDD (to another HDD) which had many read errors, using EaseUS Disk Copy 2.3 and it succeeded. The unreadable sectors, which I associate with bad sectors though it isn't necessarily so - again I don't know - appear as 'blank' sectors on the clone - in the same place (sector) as those on the original, so will have not lost anything you did not have when you started.. Now I have a clone of the original disk on the first part of the new disk and also a vast amount of unallocated space (80GB -> 500GB). I could swap this disk in place of the original, keeping the original in safe place as a back-up, and, using disk manager in Windows, or some other partition tool, extend the original partition of about 60GB into the unallocated space as far as I wanted, say up to 120GB and partition the remaining space as I liked.
Bear in mind to clone the new disk without potential data loss, you will need another disk the same size or bigger. If you back-up by making disk images (as opposed to clones, though in my usage a clone is a special type of disk image), you will need less space, and they may be stored on the same disk, but I would keep them separate. If the images are small enough you can store them on an optical disk. Remember to retain the original image-maker as you will need it if you ever need to reconstitute the images.
Doh!
9.March.2017