Saturday, September 3 2005 16:59 Hrs (IST) - World Time -

Tehran: Ignoring pressure from the US to scuttle it, India and Iran today (Sept 3, 2005) decided to go ahead with the proposed 7.4 billion dollar gas pipeline project to supply much-needed natural gas through Pakistan and sign a framework agreement by December this year for the purpose.

"If all goes well there can be a tripartite meeting of the concerned ministers of (India, Iran and Pakistan) to finalize a framework agreement by December 31," External Affairs Minister K Natwar Singh said after holding wide-ranging talks with his Iranian counterpart Manouchehr Mottaki in Tehran.

In another major deal, Singh said Tehran has agreed to supply five million metric tonnes of liquid natural gas to India annually. India had asked for 7.5 million tonnes of natural gas supply.

Singh, who is here on a three-day visit, said a preliminary framework accord for the pipeline to supply natural gas to India could be made ready by November this year. This is being considered here as a key step to make the project functional.

On the US opposition to the pipeline project, which was mooted during the visit of then Prime Minister Atal Bihari Vajpayee to Iran in April 2000, India had made it clear that it was a purely bilateral one based on commercial considerations and it would not bow to any international pressure.

Washington, which is opposing the sale of oil by Iran, has said that the money coming from sale of gas to India could be used for other purposes by Tehran, including on its nuclear programme.

Keen to carry forward the ambitious project, Petroleum Minister Mani Shankar Aiyar had visited Tehran in June this year during which the two sides decided to set up a joint working group to study all aspects of the project.