NEW DELHI (Commodity Online) : India on Thursday said it is in touch with Iran to resolve issues regarding IPI gas pipeline deal.

India’s External Affairs minister S M Krishna said, ‘We are in consultation with the government of Iran. We have certain issues about pricing and security of the pipeline”.



He said India conveyed its concerns regarding security and pricing of the gas to Iran.

With India dragging its feet over joining the pipeline, Pakistan and Iran Wednesday decided to go ahead and inked two agreements in Turkey to seal the $7.5 billion pipeline deal.

Inter-State Gas Systems, a semi-autonomous Pakistani company, signed the pipeline deal with the National Iranian Oil Company.

The two countries signed the Operational Agreement (OA) and the Heads of Agreement (HOA). However, the agreement left the door open for India by providing for the transportation of gas ‘if and when India decides to join the project’.

Under the provisions of the pact, Pakistan will have the right to charge a transit fee for transporting the gas to India. The fee will be calculated in accordance with international practices.

India has been frosty towards the project as the pipeline will pass through the volatile region of Balochistan. The surge in militancy in Pakistan has only fuelled India’s security apprehensions about the pipeline

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