US curbs on firms with Iran links unjust, says govt

India today said the US decision to impose sanctions on two Indian firms for supplying chemicals to Iran was unjustified. The government said the transfer violated no Indian regulation or India's international obligations.

This brings India and the US to the nub of a tricky problem: Will India have to give up its friendly relations with Iran if it wants to advance its political and economic ties with the US?

This was the manner in which Democrat leader from California Tom Lantos posed the issue when a Congressional committee was debating India's nuclear energy deal with the US.

He said given India's close relations with Iran "" which was named as one of the states in the 'axis of evil' by President George Bush "" there was nothing to prevent India from taking nuclear energy technology from the US and passing it on to Iran.

It is in the background of this larger debate that the sanctions under the US Iran Proliferation Act, 2000, must be viewed. They relate to transfer of chemicals, foreign ministry spokesman Navtej Sarna told reporters here. The two Indian firms are Sabero Organics Gujarat Limited and Sandhya Organics Limited.

"Our preliminary assessment is that the transfer of such chemicals is not in violation of our regulations or our international obligations," he said.

He emphasised that India's commitment to prevent onward proliferation of nuclear technology was second to none. "We have instituted a rigorous system of export controls and our track record in this regard is well known," he said, adding India was working with the international community, including the US, as a partner against proliferation.

A US media report yesterday said the two Indian chemical companies along with six Chinese government-run firms and an Austrian firm would soon be sanctioned by the Bush administration, for allegedly selling missile goods and chemical arms' materials to Iran.

India also welcomed the US decision to lift sanctions on retired scientist of Nuclear Power Corporation (NPC) C Surender, saying it vindicated its stand that the restrictions had "no justification". India had urged the US government to review the issue and withdraw the sanctions, Sarna noted.

The MEA spokesman said India also wanted sanctions against YSR Prasad, also a scientist with NPC, to be lifted. The US had imposed sanctions against Surender and Prasad in September last year on charges of helping Iran. Both scientists had denied the allegations.