The Hindu : Front Page : No bowing to pressure on IPI pipeline project: Deora

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Tuesday, Jul 21, 2009
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No bowing to pressure on IPI pipeline project: Deora

Special Correspondent

“Project delayed as we haven’t been able to decide on gas price”

Murli Deora

NEW DELHI: The government on Monday asserted that India would not bow to external pressure, including from the United States, in deciding on its participation in the $7.4-billion Iran-Pakistan-India (IPI) gas pipeline project. However, several issues hampered progress.

The problems included finalisation of tariff, transportation cost and security concerns, Petroleum and Natural Gas Minister Murli Deora said in the Rajya Sabha, but expressed hope that these would be overcome.

“Energy needs of the country are paramount. There is no question of [our] succumbing to any external pressure as far as energy security is concerned. We are very sure that the pipeline project is good for India, Iran and Pakistan. The project has been considerably delayed as we have not been able to decide on the price of gas with Iran,” he said replying to questions and supplementaries.

Besides, transportation tariff for wheeling gas through the section of the pipeline passing through Pakistan had not been finalised yet. The transit fee payable to it for allowing the passage was not finalised, nor had the project structure been decided.

India wanted guaranteed supply of gas and to take delivery at its border with Pakistan, but Tehran and Islamabad had agreed on handing over custody of gas at the Iran-Pakistan border, the Minister said. Custody transfer at the Pakistan-India border would make Iran liable for safe passage of gas through Pakistan’s territory.

Internal matter

Mr. Deora recalled that U.S. Energy Secretary Samuel W. Bodman had last year asked about India’s participation in the pipeline project. “We clearly told him it is an internal matter.”The Minister did not give any time frame for the implementation of the project as outstanding issues would have to be resolved first.

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