NEW DELHI, 22 February 2005 — Iranian Foreign Minister Kamal Kharrazi yesterday welcomed India’s approval of a three-nation gas pipeline. “Fortunately the Indian government’s recent approval of the Iran-Pakistan-India gas pipeline has created an encouraging atmosphere for pushing ahead this highly important project which no doubt would have positive impact on the regional convergence.”
Kharrazi was addressing the India-Iran Joint Business Council meeting at the Federation of Indian Chambers of Commerce (FICCI).
“Iran-Pakistan-India pipeline would be the best and most desirable step toward enhancing the cooperation between Iran and India in the field of energy. Lower cost of the piped gas, creation of fresh job opportunities and speeding of the economic progress as well as foreign investments in the countries of the region are amongst the main motivations for implementing such a big project,” Kharrazi said.
Describing the pipeline project as “highly important,” Kharrazi said it would “have positive impact on the regional convergence.”
Kharrazi described an agreement between Russia, India and Iran on the construction of an international north-south transport corridor as a major example of close regional cooperation. East Corridor, connecting Uzbekistan, Iran and Afghanistan, is an indication of cooperation between New Delhi and Tehran, Kharrazi said.
Eager to take India-Iran ties and trade to new heights, the minister said: “We have decided to permit multiple entry visas for three years to Indian merchants and businessmen keen to invest in Iran.”
Describing this as a “gift” to boost bilateral trade in oil, gas, manufacturing, IT, biotechnology and tourism sectors, Kharrazi said: “We would also grant long stay permits to those who have invested or are interested in investing in Iran to come and do business.” Signing of preferential investment agreement between India and Iran would facilitate government guarantee to investment projects and allow for repatriation of income and project capital, said Iranian officials accompanying Kharrazi. “This is expected to not only allow Iranian investment in India but also let small and medium Indian companies invest in Iran,” said Indian Ambassador in Iran K.C. Singh.
Kharrazi observed that current “non-oil trade balance between India and Iran is significantly in favor of India.”
Drawing attention to steps taken by the two countries to take their business-related relations ahead, Kharrazi said: “Iran removed the ban on the import of Indian tea and created new opportunity for the Indian tea exporters to boost their business. On the other hand India too has relaxed its norms on import of merchandise from Iran.”
Direct flights between Hyderabad and Mashhad “is a must” to take the present relations to new heights, Kharrazi said.
New Delhi has reacted favorably to enhancing trade ties with Tehran as the Indian civil aviation authorities have given Iran the permission to operate more flights to India. “We have got permission from Indian authorities to operate 12 more flights to India per week, taking the total number to 17,” Iranian Ambassador to India Zargar Yaghoubi said yesterday on sidelines of India-Iran Joint Business Council meeting. At present, Iran has air links only with Delhi and Bombay. Yaghoubi said: “We hope to have additional flights operational in a couple of months.”
