A day before bilateral talks with external affairs minister Pranab Mukherjee, Australian foreign minister Stephen Smith ruled out any

change in his government’s policy of not selling uranium to India.

Mr Smith, who met Prime Minister Manmohan Singh on Thursday night, said that India-Australia ties could not be adversely affected by denial of one commodity and that the uranium decision was a "long standing political stand" of his government.

Speaking at the Indian Council for World Affairs, the Australian foreign minister also took great pains to emphasise that the uranium policy was not targeted specifically at India. "The Australian government’s policy is not to supply uranium to non-Nuclear Non-Proliferation Treaty countries. That position continues irrespective of decision in the Nuclear Suppliers Group," he said.

He further said that on dual use items, the government would consider it on a case by case basis. "We have a longstanding commitment to NPT...we don’t want to do anything that undermines the NPT," Mr Smith added.

But India is keen to source low-cost uranium from Australia. And though New Delhi is aware of the Rudd government’s position on the matter, Mr Mukherjee is expected to take up the matter at the political level.

The Australian government has been under domestic criticism, especially from the Opposition, for supporting the NSG India waiver while continuing the policy of not selling uranium to India. Further Prime Minister Kevin Rudd has been facing criticism for his China centric policies.

Mr Smith, however, sought to dispel that notion and said that Australia recognised India as a growing power in the region. "Australia is committed to bringing our relationship with India to the front rank of our international partnerships," he said.

Interestingly, Mr Smith also praised India’s non-proliferation record and highlighted Australia’s "positive and constructive" role in the discussions in the NSG meetings.

Even though the Rudd government has ruled out sale of uranium to India, Mr Smith said that his government is mindful of India’s need for energy. "Australia is mindful of India’s profound need for energy and resources. As one of the world’s largest suppliers of energy and resources, Australia is working closely with India to promote trade in this sector. India is Australia’s fastest growing export market, and energy and resources are the main drivers behind this growth," he said.

He further supported India’s bid for a permanent UN seat. "It is Australia’s firm view that India, also a committed champion of multilateralism, be given a permanent seat on a reformed United Nations Security Council, so that the world body reflects the modern international geo-political reality," he said, adding that Australia would help India in this endeavour.