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Iran Foreign Minister Kharrazi in India to Discuss Cooperation

Iranian Foreign Minister Kamal Kharrazi

By IOL South Asia Correspondent

NEW DELHI, May 21 (IslamOnline) – The Iranian Foreign Minister, Kamal Kharrazi is in India to discuss ways and means to tackle the problem of terrorism and explore the possibilities of cooperation in energy, information technology and other key sectors including the ambitious North-South Corridor which will link East with West through Iran.

Kharrazi will participate in the two-day 12th Joint Commission Meeting (JCM) which will continue Tuesday, May 21. India is trying to enlist Iran's support in its current tussle with Islamabad. According to Indian media reports, the Iranian minister expressed his "understanding" of the Indian stand. Officially Iran has not commented on the issue and has advised both sides to "show restraint."

During wide-ranging talks on bilateral, regional and international issues of mutual interest, External Affairs Minister Jaswant Singh explained to the Iranian minister the current Indo-Pak tension besides discussing the latest developments in Afghanistan including reconstruction of the war-ravaged country.

The two sides agreed to expedite work on the North-South trade corridor which will link India with Russia through Iran to give trade with Europe a boost.

The two sides identified energy, information technology, automobiles, telecom, small-scale industry, petrochemicals, textiles, railways and certain other sectors for cooperation.

India is pushing for enhanced cooperation in the non-oil sector which has great potential for growth. In the non-oil sector, India exports to Iran goods worth US$ 340 million while Iran exports to India non-oil goods worth $214 million a year at present.

According to F. Entezari, president of the India-Iran Joint Business Council, who is visiting India at present, the thrust areas could cover products like carpets, handicrafts, dry fruits, iron and steel, aluminum, agro-based products, chemicals, optical equipment, fertilizers, and industry machinery from the Iranian side, and rice, sugar, pharmaceuticals, edible oil, engineering goods and textile machinery from the Indian side.

The two sides are studying ways to cooperate in the reconstruction of Afghanistan. India and Iran would sign a Memoranda of Understanding today at the conclusion of the JCW.

They also discussed the proposed pipeline from Iran to India for supply of natural gas. The issue whether the pipeline should come via Pakistan or should be under water is currently under consideration.

While Iran is pressing for the land route and has convinced Pakistan to take part in it, India is apprehensive of long-term dependence on an energy source which could possibly be throttled by its arch rival. Pakistan is said to be keen that the pipeline goes through its territory for it will ensure annual concession fees of around $600 million a year, a great boon for Islamabad's economy.

The land route pipeline will be 2600-kilometer-long and will cost around $3.5 billion while the sea route will cost around 10-12 billion dollars. Each state will bear the cost within its borders: Iran will spend $1.8 billion for 1100 kilometers within its territory, Pakistan will spend 1.2 billion dollars on 707 kilometers within its borders while India will spend 650 million dollars to extend the pipeline from its borders with Pakistan to Gujarat on the west coast. On the other hand, India will have to shell out 70 percent of the cost of the sea route since it will have to bear the expenses of laying the line in international waters.

During recent years India has cultivated good relations with Iran. The Indian Prime Minster AB Vajpayee paid a state visit to Iran in April 2001.

A 30-member Iranian trade delegation headed by ANS Khamoushi, president of the Iran Chamber of Commerce, is also touring India at present and meeting officials and business community leaders.

   

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