The Hindu Business Line : Iran-Pak-India gas pipeline issue to be resolved by year-end

PLEDGING CONNECTIVITY: The External Affairs Minister, Mr Pranab Mukherjee, flanked by the President, SAARC Chambers of Commerce and Industry, Mr Dasho Ugen Tsechup Dorji, the Secretary General, SAARC, Mr Lyonpo Chenkyab Dorji, and the President, FICCI, Mr Habil Khorakiwala, at the second SAARC Business Leaders Conclave held in Mumbai on Saturday. — Paul Noronha

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Mumbai Feb.17 Issues relating to the Iran-Pakistan-India natural gas pipeline would be resolved by the end of this year, said Mr Pranab Mukherjee, Union Minister for External Affairs. He was speaking to the media on Saturday at the second SAARC Business Leaders Conclave.

Mr Mukherjee said the gas price for the Iran-Pakistan leg of the pipeline had been finalised and deliberations with Pakistani counterparts would soon take place for pricing and transportation of gas for the Pakistan-India leg.

A ten-member Indian delegation headed by Petroleum Secretary is due to hold talks with its Pakistan counterpart on laying of pipes, transit fee and issues relating to security of the pipeline from the Iranian border to the India border. Iran will attend the meeting as an observer.

The proposed pipeline will be 2,100 km long and is estimated to cost over $7 billion. It will carry up to 60 million metric standard cubic metre per day (mmscmd) of gas through the pipeline in the first phase.

The Union Minister for Petroleum and Natural Gas, Mr Murli Deora, said on February 6 that India was agreeable to a formula on gas pricing suggested by the international consultant Gaffney, Cline and Associates (GCA).

The formula was discussed at a trilateral meeting held in January in Tehran.

The formula envisages linking the price of natural gas from Iran to Japanese crude cocktail price (JCC) or Japan's average custom-cleared crude oil imports price, which is about $1-1.5 a barrel higher than the Indian crude basket.

Indications are that at Rajasthan Border, the gas could cost India $5-6 million metric British thermal unit (mmBtu).

`Remove curbs on FDI'

Later addressing the conclave, the Union Minister of State for Commerce, Mr Jairam Ramesh, said restrictions on FDI from neighbouring countries such as Pakistan and Bangladesh should be removed. India-Pakistan and India-Bangladesh trade should not be confined to only goods. The key to balanced cooperation in South Asia is not just trade but investments as well, he said.

Mr Ramesh said in order to upgrade trade infrastructure and connectivity, India was implementing a $200-million project for establishing 13 land customs stations on the Pakistan, Bangladesh, Nepal and Myanmar border for facilitating border trade.

Earlier, Mr Pranab Mukherjee, said India has pledged to upgrade connectivity amongst SAARC nations and to open up the channels of communications and transport, provide transit facilities, access to roads, railways and waterways and air links, as it prepares to takeover the chairmanship of SAARC in April at the SAARC Summit meeting in New Delhi.

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