Won't yield to external pressure in signing IPI deal: Govt

India today said it will not bow to external pressures in deciding on participation in $7.4 billion Iran-Pakistan-India gas pipeline project but listed several outstanding issues including finalisation of gas price with Iran as impediments to signing a contract.     

Replying to questions in Rajya Sabha, Petroleum Minister Murli Deora said there were some problems in implementation of the project but expressed hope that they would be overcome.     

"Energy needs of the country are paramount...There is no question of (succumbing to) any external pressure as far as energy security is concerned," he clarified.

"We are very sure that the pipeline project is good for India, Iran and Pakistan."     

The project has been considerably delayed as "we have not been able to decide on price of gas (with Iran)," Deora said.     

Besides, transportation tariff to be paid for wheeling of the gas through the section of pipeline passing through Pakistan has not been finalised. The transit fee to be paid to Pakistan for allowing passage has also not been finalised, he shared adding project structure has also not been decided.     

India wanted guaranteed supply of gas and wants to take delivery of the gas at its border with Pakistan but Tehran and Islamabad have agreed for handing over custody of the gas at Iran-Pakistan border, Deora said.     

Custody transfer of the gas at Pakistan-India border would make Iran liable for safe passage of gas through Pakistani territory.

Deora said US Energy Secretary Sam Bodman had last year asked about India's participation in the pipeline project. "We clearly told him that it is an internal matter. There is no question of (India deciding on the project under) US pressure."     

US may levy sanctions against companies investing more than $20 million in Iran under the Iran-Libya Sanction Act, he said but expressed confidence that no American firm would be involved with construction of the project.     

"Those sanctions will not apply to India," Deora explained.     

He, however, did not give any timeframe for implementation of the project as outstanding issues would have to be resolved first before timelines are set.     

"We are trying our best (to resolve issues). This project is very vital (for energy security of the country)," he said.     

Minister of State for Petroleum and Natural Gas Jitin Prasada added that timeframe can be committed when these bottlenecks are cleared.     

"Various important issues like pricing of gas, delivery point of gas, project structure, payment of transportation tariff and transit fee for passage of natural gas through Pakistan are under discussion," Deora detailed.     

He also noted that Iran and Pakistan have signed Inter-Governmental Framework Declaration to support the project and concluded a Gas Sale and Purchase Agreement (GSPA).