NEW DELHI: Differences over gas pricing have surfaced between India and Iran, but the proposed pipeline project via Pakistan is progressing. A tripartite ministerial-level meeting will be held in March 2006 in Teheran, preceded by a meeting of the special joint working group of officials in February.

Under the road map laid down by the bilateral joint working group between India and Iran here, technical issues will be considered at a meeting next month in New Delhi.

As for the "variations" in views on gas pricing, Petroleum Secretary S. C. Tripathi said India's concerns were conveyed to the Iranian delegation. The issue would be taken up at later rounds of discussions keeping in view the gas price structure as well as the regional and international market situation.

At the conclusion of the two-day meeting of the special working group on Thursday, Iranian Deputy Oil Minister M. H. Nejad Hosseinian told newspersons that his country was keen on implementing the pipeline project as it would bring peace and prosperity to the region. He expressed the hope that India would extend the same support and political commitment.

Mr. Hosseinian was confident that the project would not face any problem because of the U.S. sanctions on Iran, as these had not been implemented over the last 12 years.

He pointed out that numerous American companies were still doing business in Teheran.

U.S. pressure

As for the U.S. pressure on Pakistan forcing it to slow down on the pipeline project, Mr. Tripathi said this was not the impression given during discussions with that country.

Indian financial consultants have suggested several options on the structure, which would ensure a safe and secure world-class project. Iran reiterated its commitment to the earlier scheme of sale and purchase of gas at the Indian border and also agreed to the suggestion to study other alternatives proposed by India.

On the framework agreement, both sides agreed on its early finalisation and also arrived early at a consensual view on the project structure.

Both sides agreed that comments on those provisions of the agreement, which did not refer to the project structure, would be exchanged in January 2006.

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