New Delhi: The proposed $4.16 billion Iran-India gas pipeline via Pakistan is likely to be discussed between the visiting Pakistan Foreign Minister Khurshid M Kasuri and the leaders in New Delhi.

Petroleum Minister Mani Shankar Aiyar has hosted a private lunch for Kasuri on Monday (Sep 6, 2004) during which the security issue of gas supplies to India through the 2775-km pipeline, 760-km of which will pass through Pakistan, may be discussed.

"If our security concerns are adequately addressed, this project could turn out to be the economic bedrock which could buttress many more economic cooperation proposals," sources in the Ministry of External Affairs said.

Iran has been pursuing the pipeline proposal, which will save it 300 million dollar per year in energy cost, with New Delhi and Islamabad since 1996, but tensions between the two countries has blocked the progress.

The previous NDA (National Democratic Alliance) Government even considered laying the pipeline under the sea to avoid Pakistani territory.

However, the UPA Government appears to have softened the country's position.

Aiyar, who has favoured the pipeline to bridge the growing energy gap in India, today (Sep 3, 2004) held an hour-long meeting with Foreign Secretary Shyam Saran presumably for a brief on discussions with Kasuri on Monday.

Sources said an international consortium of bankers and oil firms building and operating the project, with Tehran assuring supply of gas in form of LNG in case of sabotage may be harped at the meeting as guarantees for secured supplies to India.