India Denies Change in Iran Ties

BBC News:

India says Iran has given no indication that it is reviewing ties after Delhi's support for Iran's nuclear programme to be referred to the United Nations.

The denial followed reports in India's leading Hindu newspaper that Iran had scrapped a $22bn gas deal with India.

Under the accord, energy-hungry India will import 5m tonnes of liquefied natural gas a year for 25 years.

On Tuesday Iran criticised India for supporting a vote to refer it to the Security Council for its nuclear plans.

Iran's ambassador in Delhi conveyed Tehran's disappointment face to face in a meeting with India's foreign secretary.

'Major blow'

The Hindu newspaper reported that Iran had "informed" India that the $21bn gas export deal had been scrapped after India voted at the International Atomic Energy Agency (IAEA) to refer Iran to the UN Security Council.

"With this, India's energy security has suffered a major blow. The agreement was considered a good deal for India," said the newspaper.

India's foreign ministry said it was aware of Iran's statement on Tuesday that it would reconsider its economic co-operation with those countries that voted against it. READ MORE

But the Indian foreign ministry spokesman said Delhi had not been told of this when the foreign secretary met the Iranian ambassador.

"We have been given no indication in these interactions of Iran's intentions to review its long-standing and extensive co-operation with India which is of benefit to and in the interest of both countries," the spokesman said.

He said India had explained the "background to our decision to vote in favour of the resolution at the IAEA".

"The importance which India attaches to maintaining traditionally close relations have also been reiterated."

Under attack

The Indian government has maintained since Saturday that it did not come under pressure to back the vote from the US, which has thanked Delhi for its support.

India says the IAEA resolution is consistent with Delhi's stated position on Iran and in no way linked to a recent landmark India-US nuclear accord.

The US accuses Iran of seeking nuclear arms, which Tehran denies. It says it wants nuclear technology purely for peaceful production of energy and has called the resolution illegal.

India's government is under attack both from the opposition and its left wing allies for its decision to side with the West and vote against Iran, a traditional ally.

The two countries enjoy good relations and have been focused on a possible project to pipe natural gas from Iran through Pakistan to India.

The two countries have also been stepping up their military co-operation and Delhi is keen to have a foothold in Afghanistan using Iran as an entry point.