New Delhi: The union cabinet has authorised the petroleum ministry to negotiate directly with Iran, Pakistan, Bangladesh and other countries for facilitating the laying of transnational pipelines for import of natural gas to India.

"It will significantly enhance oil security of the country," the union petroleum minister, Mani Shankar Aiyar, said after the cabinet meeting here on Wednesday.

The decision was taken due to the stand adopted by the ministry for external affairs claiming to be the nodal agency for dealing with other governments.

However, the petroleum ministry was of the view that it should be allowed to deal directly with other governments in the hydrocarbon sector since during negotiations the energy or petroleum ministers of these countries were involved.

As per the decision, the petroleum ministry will lead or participate in bilateral multilateral negotiations for facilitating the laying of pipelines for import of natural gas.

"To sustain higher economic growth of 7-8 per cent per annum, it is imperative to look for cost-effective and long-term arrangements to meet our energy requirements," Aiyar said.

Petroleum ministry officials say that the cabinet decision would go a long way in finalising a decision on a natural gas pipeline.

India has been holding discussions with Iran, Myanmar, Bangladesh and Turkmenistan for laying a pipeline to import natural gas.

Pakistan has been keen on the Iran-India pipeline project for years, but political tensions between the two neighbours had hampered progress.