Tuesday, June 14 2005 08:02 Hrs (IST) - World Time -

Tehran: India and Iran yesterday (Jun 13, 2005) decided to set up a special joint working group to sort out legal, financial and technical wrangles in the proposed $4.16-billion Iran-Pakistan-India gas pipeline.

"We have agreed to form a Special Joint Working Group to sort our technical, financial, commercial and contractual/legal issues with the view of ensuring each of them contribute to the security of the pipeline and safe delivery of gas," Petroleum Minister Mani Shankar Aiyar said after witnessing signing of Heads of Agreement (HoA) beween Iran's National Iranian Gas Export Co and GAIL (India) Ltd and Indian Oil Corp for export of gas to Pakistan and India through the 2600-km pipeline.

Iran agreed to supply 60 million standard cubic meter per day of gas to India beginning 2010 and ramp it up to 100 mmscmd by 2013-14 from Phase 17, 18 and beyond of the gigantic South Pars gas field in the Persian Gulf. Tehran will also supply 30-40 mmscmd of gas to Pakistan through the same pipeline.

India and Pakistan had last week formed a similar joint working group to thrash out modalities of the pipeline so that the pipeline takes off early 2006.

"Discussions on the pipeline project will be intensified," Aiyar said indicating the bilateral talks with India and Pakistan, India and Iran and Iran and Pakistan will at a later stage converge into a tripartite agreement.

Iranian Oil Minister Bejan Namdar Zengeneh said he would visit Pakistan next week to hold talks with his counterpart on the pipeline issue.

"I believe that it is not only a dream or an ideal... We are close to deciding on timing of the project implementation and execution. I am very hopeful that this project will take-off soon," he said.

Brushing aside US opposition to the pipeline project, he asked, "If Iran can export oil and petrochemicals, why can't it export gas through a pipeline to India and Pakistan?"

The project, he said, will not only supply gas for meeting huge energy requirements of India and Pakistan but will also help in creating mutual dependence and peace in the region.

Aiyar said a delegation of Iranian officials will visit India between June 23 and 25 to attend a workshop on technical and legal issues of the pipeline. Similar technical level exchanges will happen between India and Pakistan and Pakistan and Iran with ministerial level interaction planned in the second half of the year.

"We are working very fast and I am confident that the project will see the light of the day," Aiyar said.