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  Oil minister, Leftist allies disagree with Singh: Tri-nation gas project


prime minister manmohan singhISLAMABAD, July 22: The Indian move to play up risks pertaining to Iran-Pakistan-India pipeline plan is meant to dictate terms for the implementation of the project and seek subsidized prices of gas. A petroleum ministry official told Dawn on Friday that India wanted a three-nation ownership of the 2,670km pipeline and the price at which Iran was providing gas to its citizens.

The official said this in a reaction to a statement of Prime Minister Manmohan Singh in Washington in which the Indian leader expressed scepticism about the pipeline saying that the project was fraught with risks and that he did not know if any international consortium of bankers would underwrite it.

He said the Indian government gave similar impressions through media when a high-level Pakistani delegation was in New Delhi early this month as part of the joint working group on the pipeline.

He said the Indian attitude also raised apprehensions in Iran, raising questions whether New Delhi was really interested in the project or wanted to get favourable gas prices before its execution.

He said India believed that gas prices offered by Iran were on the higher side and had asked Iran to sell gas at the rate which was being paid by the Iranian nationals. Obviously, he added, Iran was not willing to offer subsidized domestic rates to India.

Secondly, the official said, India had proposed that since international consortium might not be available for the project, the gas authorities of the three countries should develop the pipeline through a joint venture which should also have ownership rights of the pipeline.

He said the proposal was not practicable, adding that it was not only the pipeline but also the land and other things in each country whose proprietary rights could not be given to a third country.

NEW DELHI, July 22: Indian Prime Minister Manmohan Singh’s woes over a controversial gas pipeline project with Iran increased on Friday after a cabinet colleague and key allies distanced themselves from his critique of the multi-billion dollar idea. Petroleum Minister Mani Shankar Aiyar said negotiations with Pakistan were on to make the Iran-Pakistan-India gas pipeline safe from all risks. Dr Singh had described the project in Washington as being fraught with risks.

“The whole of this exercise for a safe and secure world class project is taking required measures to mitigate the risks involved,” Mr Aiyar told reporters here.

Dr Singh had also expressed doubts if any international consortium of bankers would underwrite the project.

Mr Aiyar said the technical, financial, commercial and legal agreements of the pipeline would have safety and security dimensions worked into the project structure.

“Negotiations are on schedule that we had laid. We are working towards that,” he said.

Earlier this month, India and Pakistan decided to appoint separate financial consultants to work out a project structure for the much-delayed project to take off by early next year.

The prime minister’s Left Front allies, who shore up his United Progressive Alliance government, voiced apprehensions on Friday over the Indo-US agreement on nuclear energy.

“It is very unfortunate that the prime minister has made such remarks in Washington when it is well-known that the United States is opposed to the project,” said Mr Prakash Karat, general secretary of the Communist Party of India (Marxist).

“The prime minister should immediately clarify whether the commitment to the pipeline project has been diluted as a result of his visit to the United States,” Mr Karat said after an hour-long meeting of the four Left parties ahead of the monsoon session of parliament beginning Monday.

The Left parties have decided to have floor coordination with the government “as we are supporting the government from outside,” Mr Karat said.

Pakistani diplomats said privately they were surprised by Dr Singh’s apparent lack of enthusiasm for the project for which Islamabad has been resisting American pressure to abort it.



 

 

 

 
 

 

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