India and Iran discussed the nuclear issue and cooperation in energy sector at the meeting between visiting Iranian deputy foreign minister and Indian counterpart Tuesday, the Ministry of External Affairs said.

Iranian Deputy Foreign Minister for Asia, Oceania and Commonwealth Mehdi Safari arrived here Tuesday and met with Rajiv Sikri, Secretary (East) with Indian Ministry of External Affairs, the ministry said in a press release.

On the nuclear issue, Safari said Iran is open to negotiations and willing to cooperate fully with International Atomic Energy Agency (IAEA) but insist on its rights under the Non-Proliferation Treaty (NPT) and the issue being reverted to the IAEA.

India does not want confrontation and destabilization in the region, Sikri said. "India wants all issues to be resolved through dialogue and discussion rather than coercion."

India believes that as a signatory to the NPT Iran must enjoy all its rights and honor all its obligations, he said.

The two sides reaffirmed the commitment to the Iran-Pakistan-India gas pipeline project while India emphasized the importance of Iran to honor the liquefied natural gas (LNG) deal signed in June 2005, the press release said.

The gas pipeline project talks have moved little as the three sides disagreed on the price of gas. Iran would like to raise the price in line with the oil price hike while India and Pakistan want it to be based on the cost.

And Iran also wants to raise the price of LNG in the deal of supplying 5 million tons of LNG to India.

(Xinhua News Agency August 30, 2006)