India believes that the latest Iranian offer of resuming talks could be an opportunity to break the nuclear logjam, even as South Block, headquarters of ministry of external affairs feels caught between, two of its friends (Iran and Israel), who are openly trading charges, embarrassingly using India as the battleground.

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India feels also the Iranian letter to the EU foreign policy chief could relieve tensions, provided both sides engage in “serious and meaningful discussions”.

Official sources here said while investigating authorities were probing every angle including pursuing Israeli contentions, they assert only the national interest and not pressures from either the United States or Israeli would guide relations with Iran. The allegations and counter allegations would continue for next few days, as Israeli minister for energy and water resources Uzi Landau is arriving here early next week. He has already made his intentions clear, saying terror cells were active in India and both countries need to step up counter terrorism cooperation.

India is also conscious of the complications arising out of the Iranian nuclear issue. While believing that biggest causality in the current episode was India’s fine balancing act in West Asia, officials say, their position on the nuclear issue was clear.

“New Delhi does not favour a nuclear Iran, but prefers a diplomatic outlet rather coercion to resolve the issue,” they said. “We have been pressing Iran to abide by international obligations as it had been a member of the Non-proliferation Treaty,” say sources.

In the wake of an American pull out from Afghanistan, it is imperative for India to maintain cordial relations with Iran for the sake of stability in the immediate neighbourhood. “India and Iran were allies in Afghanistan, even prior to US turning its guns on Taliban,” say officials.

As Pakistan has been blocking every Indian access to Afghanistan and central Asia, Iran is perhaps the only route to connect to these regions. India is already negotiating to build a railway network form Iranian ports to central Asia. Tehran is also India’s gateway to reach to its strategic assets in Tajikistan. Further, besides Japan and Turkey, New Delhi is a key partner to bring a rapprochement between Iran and the West.

Reminding that India has been negatively affected by the Iranian nuclear imbroglio, with Indian companies and individuals at the receiving end, Samuel C Rajiv at the Institute of Defence Studies and Analysis documents that Reliance had to stop their imports in April 2010 on account of the US Comprehensive Iran Sanctions and Divestment Act. India is facing continuing problems in paying for the crude it buys from Iran since December 2010, when the Reserve Bank of India scrapped the Asian Clearing Union mechanism on account of US pressure.