By IOL South Asia Correspondent

NEW DELHI, January 13 (IslamOnline) - Ahead of Iranian President Mohammad Khatami’s visit to India, Iran has offered India a pipeline deal that is difficult to reject, although India is worried that the pipe lines may be sabotaged by anti-India militants in Pakistan through which the pipes pass.

Under this package, Iran would sell gas to India at $1.8 per mmbtu (million metric British thermal unit).

The gas would be delivered at India’s border via an inland pipeline that would pass through Pakistan. The Iranian gas would be available at half the going rate for liquefied natural gas and naphtha, that is $3 to $4 per mmbtu.

India is skeptical because of the presence of too many anti-India militants on Pakistani soil who might sabotage gas supply to India. Pakistan, which Khatami visited last month, seems to be receptive of the idea.

Khatami will be the chief guest at Republic Day celebrations in New Delhi on January 26, and will meet the country’s top leaders. He will also go to Hyderabad in the south emerging as a hub of Information Technology and bio-tech.

Italy’s Snamprogetti and Australia’s BHP are reported to be studying the viability of both an inland and a costlier undersea pipeline project. The undersea pipeline would be less vulnerable to sabotage.

To allay India’s fears of sabotage, Iranian officials have earlier proposed to a visiting Indian delegation a global corporate ownership of the pipeline. An international consortium of bankers and energy majors would own and operate the pipeline. It will be the consortium’s responsibility to buy gas from the National Iranian Oil Company and sell it to India.

The Times of India daily reporting the developments commented that possibility of having the pipeline insured should also be examined. In case of sabotage on Pakistani territory, the adverse impact on India would be covered by the insurance, the newspaper said.

People acquainted with oil industry think such a pipeline should be able to provide substantially cheaper fuel. However, the cost of laying a pipeline would be rather as high as $4 billion. There may not be many financial institutions to finance such a project.

Pakistan may not have a great incentive for sabotaging a project that is sure to bring in a lot of investments and royalty. The pipeline would also help Iran and Pakistan realize their potential for cooperation with mutual benefit.

Trouble-free and friendly relationship with Afghanistan

Afghanistan had emerged as a bone of contention between Iran and Pakistan, which over the years have enjoyed an otherwise relatively trouble-free and friendly relationship. The new partnership would ensure that the two countries would stick to their pledge of neutrality in Afghanistan.

The pipeline should not only improve the Iran-Pakistan ties but provide a new impetus for Pakistan for building peace with India. Iran’s growing ties with India are also expected to have a restraining effect on India.

In November 2002, India’s science and technology minister Murli Manohar Joshi visited Tehran to explore possibilities of developing closer cooperation with Iran. Iranian first vice president Mohammad Reza Aref said his country attached great importance to relations with eastern countries, including India.

The two sides issued a joint statement signed by Joshi and Iranian minister for science, research and technology Dr. Mostafa Moin. Information technology, energy, industrial technology, food technology and environment were identified as areas of cooperation.