NEW DELHI, Dec. 3 (Xinhuanet) -- Indian Minister Natwar Singh, who was involved in an Iraq oil deal, met Indian Prime Minister Manmohan Singh Saturday but did not resign despite mounting demands for his exit, according to Indo-Asian News Service.

    Natwar Singh, now a minister without portfolio, did not quit the Indian cabinet when he met Manmohan Singh at the latter's residence, the report said.

    Natwar Singh and the Congress were named as "non-contractual beneficiaries" in Iraq's 64 billion US dollar oil-for-food program in UN official Paul Volcker's report. The Indian government immediately ordered a probe and eased him out of the external affairs ministry.

    The issue had begun to die down when it took a dramatic turn Friday, with India's ambassador to Croatia, Aneil Matherani, a former aide to Natwar Singh, alleging that the minister had misused the Congress name to get oil vouchers from the Saddam Hussein regime, the report said.

    Although Matherani later denied making the tape-recorded allegations, the opposition demanded Natwar Singh's arrest.

    By Saturday morning, Congress sources indicated that the sentiment in the party was ranged against Natwar Singh and that pressure was mounting on Natwar Singh to quit the government in order to avoid further embarrassment for the government.

    While some Congress leaders feel that Natwar Singh should quit, others do not want the government to succumb to the opposition. Some Congress MPs have urged the Indian prime minister to sack Natwar Singh.

    Aides to Natwar Singh have blamed his unidentified "enemies" behind the latest move to embarrass him and to plot his exit from the cabinet. Enditem