Iran to India: speed up pipeline project

Visiting Iran Minister of Economic Affairs and Finance Danesh Jafair said India and Pakistan should sort out the difference on the “transit issues”, so that the India-Pakistan-Iran pipeline project, which is “for the peace of the region”, is implemented.

Petroleum Minister Murali Deora is expected to visit Tehran in a week’s time. And to expedite the pipeline project, the minister said he is expecting to host the Pakistan Petroleum Minister in Tehran soon.

“We have arrived at a pact with Pakistan. Now India and Pakistan have to reach an understanding and sort out the transit issue,”Jafari said at an interaction. Jafari, however, admitted that the pricing of gas remains an issue.

“Had the MoU been ratified earlier, the price could not have been an issue. Now, the international price has gone up considerably. We can give concessions to India, but it will not be at much of a variation from the international price”, he said.

He said India can make use of the “buy-back” option — first investing in the country for the production and then getting back the gas in return.

“For meeting greater demands, this is an option too,” he said. Without being specific, the minister said there is pressure on Iran to sell gas to Europe and not to India. When asked who is exerting pressure, he said, “I cannot tell you that. But there is pressure on us to sell the gas to Europe,” he said.

When asked about India’s reaction to the Iran-Pakistan-India pipeline, the minister said “there is eagerness on Indian side” for the completion of the project.

External Affairs Minister Pranab Mukherjee, too, is expected to visit Iran soon though details of the visit are not known yet.