Pakistan and Iran have signed the ambitious pipeline agreement without India. Under the agreement, a  pipeline will be build to take Iranian gas to Pakistan. The preliminary agreement was signed in Tehran by Iran’s President Mahmoud Ahmadinejad and his Pakistani counterpart, Asif Ali Zardari. After signing the agreement, officials of both the countries said that India or any other country can join the pipeline project later.

 

By mentioning the inclusion of any other country in the pipeline projects, both the countries have tried to put pressure on India. It is believed that Pakistan has been trying to include China in the project. New Delhi has been abstaining from the trilateral talks since mid-2007 following problems in transit fee and tariff issues with Pakistan. The government of India said that it cannot join the project unless the issues get sorted out.

 

Another factor that discouraged India to take part in the gas pipeline is the compulsions of geopolitics and the security situation in Pakistan. Apart from it, the Indian government does not want to upset United States by getting into the project that will provide a source of revenue to Iran. The gas pipeline project will also benefit Pakistan through transit fees and tariff, which India wants to avoid. Pakistan is demanding 49 cents per mBtu (million British thermal unit) as transit fee, while New Delhi has offered 15 cents ($60 million a year) for providing security and right of way to the pipeline.