To beat inflation blues the goverment has now turned to Pakistan. External affairs minister Pranab Mukherjee has requested Pakistan government to allow more cement exports to India. In a non paper submitted to President Musharraf, Mukherjee has said India favoured hiking availability of railway wagons on the Punjab border and more ship containers on the Mumbai Karachi route. The non-papers also suggest increasing tonnage of trucks crossing the border, which currently is restricted at 10 tonnes. It is understood to have recommended allowing cement trucks to travel upto Amritsar instead of unloading at the border to smoothen supplies. India imported 240,000 metric tonnes of cement from Pakistan last year and wants to raise it to 6,00,000 metric tonnes this year.
Acknowledging the move, government managers on Friday said the non paper on cement exports seeks to increase exports to India through both sea as well as land route. The issue was discussed in the delegation level talks between foreign secretary Menon and his Pakistani counterpart Salman Bashir. In more normal times this will also help India export more to its neighbour.
A staggering demand for cement as well as steel to cater to infrastructure projects in the country has resulted in inflationary trends. In its efforts to curb inflation, the government has already pressured domestic cement manufacturing companies to cut prices and hold the priceline for some time. The other non paper is on the Iran gas pipeline. These, according to experts is a clear indication of India?s intent to accelerate projects aimed at securing infrastructural resources and energy in the backdrop of rising prices. Non-papers in diplomatic parlance are unofficial proposals. They were handed over by Mukherjee to Pakistan president Pervez Musharraf during his visit earlier this week to Islamabad.
On the pipeline agreement, India has sought Pakistani assurances on uninterrupted fuel supply. It also seeks clarity on issues relating to transit and tranportation fee of Iranian gas that will be transported through Pakistani territory. ?We are seriously in need of natural gas. We discussed security issues related to the pipeline,? foreign secretary Shivshankar Menon had told reporters after delegation level talks on the composite peace process in Islamabad earlier this week. The stalled 2100 km pipeline project, can play a critical role in fuelling India?s energy needs, with projections asserting that 60 million standard cubic meters per day (mmscmd) of gas can be expected to be supplied in the first phase of implementation after signing of the agreement. In the second phase, the projection is for 90 mmscmd of gas to be supplied to both India and Pakistan.