labels: Economy - general
India seeks more assurances from Iran on gas pipeline project news
30 April 2008

Mumbai: India is believed to have sought assurances from Iran over the safe passage of natural gas through Pakistan before an agreement on the $7.4 billion tri-nation pipeline can be signed.

Sources said New Delhi wanted Iran to handover custody of gas at the India-Pakistan border and not at Iran-Pakistan border as had been suggested by Tehran, to cut transit risk through Pakistan. It also opposed price revision clause that Iran is seeking to insert in the gas sales agreement.

Iranian President Mahmoud Ahmadinejad's six-hour visit, however, seems to have  broken the deadlock in IPI talks and things are likely to move fast, sources said.

"We had a very good meeting. Prime minister Manmohan Singh conveyed India's keenness to join the project," petroleum minister Murli Deora said, adding, "It may happen within the 45-day timeframe suggested by Ahmadinejad."

He, however, declined to divulge details and merely said oil ministers of the three nations may meet soon to resolve all outstanding issues.

New Delhi has sought dedicate supplies for the Iran-Pakistan-India pipeline as also alternate supply sources in the event of depletion of reserves. India also sought third party certification of Iran's reserves.

The Iranian president made no commitments on the issues raised by New Delhi and left it on his oil minister to resolve the issues, sources said.

Pakistan and India also seem to have made some breakthrough on the transit fee and transportation charges, the two issues that have already delayed the pipeline project and raised the cost from $3.3 billion in 2004 to $7.5 billion today.


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India seeks more assurances from Iran on gas pipeline project