THE ban on Australian uranium sales to India is under renewed challenge after the federal government this week lifted an 18-month freeze on a deal for yellowcake exports to Russia.

Trade Minister Simon Crean yesterday defended the continued ban on uranium sales to India despite the estimated $1 billion deal with Russia and an existing agreement to sell Australian nuclear materials to China.

''China and Russia are both signatories to the nuclear non-proliferation treaty, [and] we've also entered strict safeguard arrangements with them. India is not a signatory,'' Mr Crean said. The decision to clear the Russian deal sent a signal, he said, that India must first agree to international nuclear controls to get access to Australian uranium.

But opposition resources and energy spokesman Nick Minchin labelled the decision ''a major slap in the face to India'' as the world's largest democracy.

Labor abandoned a Howard-era pledge to sell uranium to India, prompting anger in Delhi.

It also emerged in parliamentary estimates hearings last month that the government will spend $2.7 million to create a new position for an energy and resources officer at the Australian high commission in Delhi.

Senator Minchin questioned the need for an official position in Delhi while Australia's largest resources market - China - has no equivalent.

''We have a major and frankly embarrassing situation in the relationship with India where they are insulted that we will not sell uranium to them but we will sell it to China, so the sop is to provide this counsellor,'' he said.