Date:21/06/2007 URL: http://www.thehindu.com/2007/06/21/stories/2007062150081300.htm

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Pact on pipeline likely by mid-July

Sujay Mehdudia

NEW DELHI: An agreement on construction of the $7 billion India-Pakistan-Iran gas pipeline is likely by mid-July, according to Petroleum Minister Murli Deora.

India and Pakistan are scheduled to hold Secretary-level bilateral talks on June 27 and the next two days will see trilateral talks.

The talks between India and Pakistan Joint Working Groups would focus on the transit and transportation fees, which had hampered further progress on the issue. It is understood that by and large, both countries have zeroed down on the costs and the Secretary-level talks will culminate positively.

“We plan to come out with a Secretary-level declaration after the two-day trilateral talks. This could be followed by a ministerial round of meeting next month that could possibly seal the whole issue,” Petroleum Secretary M.S. Srinivasan said here.

On June 18, Mr. Deora said discussions were on with Iran and Pakistan on prices and how the pipeline would be brought to India.

Sorted out

He said major issues were sorted out and issues such as transportation fee and alignment would be worked out soon.Mr. Deora ruled out hike in prices of petrol, diesel and LPG.

He said talks would be held with the Finance Minister next month on the issue of bonds and to review the entire situation.

“We are following the instruction of the United Progressive Alliance chairperson, Sonia Gandhi, not to hike prices. We stand by that commitment and promise that there will be no price hike,” he asserted.