India, Iran pledge commitment to build gas pipeline

Both sides "reaffirmed their commitment to the Iran-Pakistan-India gas pipeline and an early ratification of the LNG (liquefied natural gas) deal" signed last June, the foreign ministry statement said.

The June agreement, worth 22 billion dollars, provides for the import of five million tonnes of Iranian gas annually over a 25-year period from 2009.

Negotiations on the proposed pipeline through Pakistan began in 1994 but has made little headway because of tensions between Pakistan and India, which have fought three wars since gaining independence in 1947 from Britain.

The pipeline would supply gas from the massive South Pars offshore fields in the Gulf.

However, since January 2004, the two rivals have been engaged in a peace process and relations are at their best for years.

India plans to initially draw 60 million cubic metres (78 million cubic yards) of gas from the pipeline and increase the quantity to 90 million cubic metres within two to three years.

Pakistan has estimated its initial demand at 30 million cubic metres which would double by 2013.

Aside from relations between the two neighbours, there are other obstacles.

The United States, an increasingly close ally of India and leading critic of Iran, has also made clear its objections to New Delhi buying gas from a country it accuses of supporting terrorism and attempting to make a nuclear bomb.

Iran has denied it is seeking to develop atomic weapons.

The talks also come at a time when India is seeking to cement a nuclear co-operation agreement with the United States that would see Washington assist India with a civilian nuclear energy programme.

New Delhi, which is seeking new sources of fuel to feed its booming economy, has been denied access to nuclear technology for over two decades since testing a nuclear weapon and refusing to sign the Nuclear Non-proliferation Treaty.

The foreign ministry statement said Safari discussed Iran's nuclear programme and the upcoming International Atomic Energy Agency (IAEA) meeting on March 6.

"On the Iran issue in the IAEA, the Indian side emphasised the need for all sides to eschew confrontation, exercise restraint and demonstrate flexibility in order to find a solution," it said.

Last week, Indian Prime Minister Manmohan Singh told parliament that New Delhi was worried by "escalating rhetoric" over Iran's nuclear program.

Singh said Iran had the "legal right" to develop peaceful uses for nuclear energy consistent with its international commitments and obligations.

But it was "incumbent upon Iran to exercise these rights in the context of safeguards that it has voluntarily accepted upon its nuclear program" under the IAEA, Singh said.

India had voted against Iran at two meetings of the IAEA -- on September 24 and on February 4.

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