NEW DELHI, 29 November 2005 — Describing the much talked about Iran-Pakistan-India gas pipeline as indispensable for the country’s needs, Petroleum Minister Mani Shankar Aiyar said yesterday that the ongoing bilateral negotiations would turn trilateral soon. “An Iran-Pakistan-India pipeline is indispensable for India’s energy security and its economic growth. It is indispensable as it is essential for eradication of poverty in the country,” Aiyar said at the India Economic Summit here. The three sets of bilateral dialogue between India and Pakistan, India and Iran and Iran and Pakistan would culminate into a trilateral dialogue early next year, he said.
Considering that the only diplomatic obstacle to the pipeline project has been the objections raised by the United States owing to its concern for Iran’s nuclear program, India has every reason to feel relaxed as Washington is apparently changing its approach toward Tehran. Recent reports from Washington suggest that the United States wants Iran to help it in controlling unrest in Iraq, as it aims to withdraw its troops from Iraq. The US ambassador to Iraq, Zalmay Khalilzad has been given an “explicit” permission by President George W. Bush to start a diplomatic dialogue with Iran on the issue.
Not surprisingly, exuding confidence on the progress of the pipeline project, Aiyar said: “We have made extraordinary progress toward realizing a world-class safe and secure project.”
Meanwhile, a senior official told the summit that the government hoped to open the economy more to foreign competition despite opposition from powerful leftist allies.
The government plans to ease foreign investment rules and open new sectors to overseas capital, despite political opposition which forced the Cabinet earlier this month to delay a decision.
A panel of ministers has since been set up to hammer out a consensus on the proposals, which include simplifying procedures, raising caps on foreign equity participation in some sectors and opening electricity trading and mining activities to foreign investment.
“We do think, very shortly, we will make major announcements,” Ajay Dua, secretary in the industrial policy department, told the summit.
— Additional input from agencies
