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The Government is discussing the details of the Iran-Pakistan-India gas pipeline project with the Governments of Iran and Pakistan. The discussions is progressing satisfactorily.
Two separate Secretary-level Joint Working Groups (JWGs) viz., the India-Iran special JWG and the India-Pakistan JWG, have been constituted to discuss the ‘financial, technical, commercial, legal and related issues to realize a safe and secure world-class project’ as stated in the Joint Press Statement issued by the Ministry of Petroleum of India and Pakistan at Islamabad on 7 June, 2005.
The first meeting of the India-Pakistan JWG was held in New Delhi on 12-13 July, 2005. Both sides stressed their “serious commitment’ to address various issues pertaining to the project and agreed that once basic issues pertaining to the project had been satisfactorily resolved between the three countries concerned, they would enter into a “Framework Agreement”. The two sides agreed on the crucial importance of urgently appointing their respective financial advisory consortia to advise on the project structure and related technical, financial, commercial and legal matters. They agreed that every effort would be made to appoint their respective financial advisory consortia at the earliest.
The meeting of the India-Iran Special JWG is likely to take place in New Delhi in early August 2005. Earlier, an Iranian technical-level delegation accompanied by the representatives from BHP-Billiton, their project consultants who had prepared a pre-feasibility report for the project, visited New Delhi on 24-25 June 2005, and made a presentation covering some technical and commercial aspects of the project.
The findings of the financial advisors supported by technical and legal consultants, will be discussed at future scheduled meetings of the Joint Working Groups (JWGs). These meetings will be reviewed by Minister-level interactions over the next few months. It is expected that by the end of the year, the three Governments will be in a position to decide on the project structure and related technical, financial and legal aspects of the project.
During her visit to India in March, 2005, U.S. Secretary of State Dr. Codoleezza Rice told the media that the US had conveyed its concerns on the proposed gas pipeline cooperation between India and Iran. Later, US Officials stated publicly that the US position on India’s energy requirements was “constructive”. The US legal position on this issue flows from its Iran Libya Sanctions Act (ILSA) of 1996 that provides for the imposition of sanctions against any party that has made an investment of more than Dollars 40 million that directly and significantly contributes to the enhancement of Iran’s ability to develop petroleum resources of Iran.
The question of the Iran-Pakistan-India pipeline has not been officially raised by the US authorities. However, it is a matter of record that the Iran Libya Sanctions Act 1996 is on the US Statute book. No discussions have been held between the Indian Petroleum & Natural Gas Minister with the US Secretary of State in this regard.
Above information was given by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas in a written reply in the Rajya Sabha today.
RCJ/KC/ Indo-Iran-pipeline (PQ) 26.7.05
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