Concerned about the slow progress of trilateral discussions between the participating countries in the $8-billion Iran-Pakistan-India (IPI) gas pipeline, Prime Minister Manmohan Singh has stepped in to try and bring the project back on track. A recent communiqu? (dated October 3) from the Prime Minister?s Office to the petroleum ministry states, ?The Prime Minister has desired a brief on the slowdown in the IPI gas pipeline project.?

Sources said the crucial issues relating to India?s participation in the project were now likely to be discussed at the highest political level with Iran. They said a similar dialogue would be held with Islamabad after the restoration of political stability in Pakistan.

Although a recent statement by Iran?s foreign minister that ?India was very much on board the IPI gas pipeline project, and much should not be read into the non-participation of India? in the recent meeting in Islamabad. However, government sources said New Delhi had decided not to participate after much deliberation and was quiet clear that it would not hold any further discussions on the trilateral platform until it resolved bilateral issues with Islamabad over the transit fee for passage of the pipeline through that country.

Besides the issue of a transit fee, India and Pakistan also need to resolve between them the response to Iran?s request for a price revision clause.

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