India to skip Tehran meeting on IPI pipeline, as transit fee unsettled

India to skip Tehran meeting on IPI pipeline, as transit fee unsettled

Dawn, February 06, 2008 Wednesday Muharram 27, 1429
By Jawed Naqvi

NEW DELHI-

India is unlikely to attend a meeting called by Iran next week to finalise the Iran-Pakistan-India gas pipeline as it would first like to settle a transit fee issue with Islamabad, reports said here on Tuesday.

Press Trust of India said Petroleum Minister Murli Deora was unlikely to visit Tehran on Feb 12-13 for the tri-lateral meeting. Mr Deora would instead make a visit to Islamabad sometime after Feb 18 general elections to settle the transit issue. Pakistani officials in Delhi said on Tuesday a final word on Mr Deora’s visit to Islamabadwas expected on Wednesday.

New Delhi has since July 2007 not attended the trilateral meeting on the pipeline project pending resolution of the transit issue with Pakistan. India is also under considerable pressure from the United States to abandon the project.

While India and Pakistan are in agreement with the charge for transporting the gas through a 1,035-km pipeline length in Pakistan, differences continue on the issue of payment of a separate transit fee to Islamabad for use of its territory for passage of the fuel.

Press Trust of India said while the price of gas has been agreed upon by the three nations, Iran’s demand for revision every five years has to be settled for signing of any $7 billion-plus deal.

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