While the Indian government showed interest in the Iran-Pakistan natural gas pipeline project, it remains to be seen how it arrives at a consensus with Pakistan on the transit fees for using the pipeline.
During his recent visit to Iran, Indian External Affairs Minister Salman Khurshid showed interest in the project. Reports from New Delhi also indicate that the Iranian Oil Minister Rostam Qassemi is scheduled to visit New Delhi sometime to hold a meeting with the Indian Petroleum and Natural Gas Minister Veerappa Moily. Both the ministers may discuss on the pricing formula of the gas pipeline.
It may be recalled that in 2009, India decided not to participate in the project as it realised that the price set by Iran would make it economically unviable for the Indian government to invest in venture.
The revival of India’s interest in the project is beneficial for Pakistan as it earn foreign exchange through the transit fee payable by India. This would enable Pakistan meet a significant portion of the cost of gas that would be used in its country.
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