'LNG deal depends on the will of Government of India'

Sayed Mahdi Nabizadeh
Ambassador of the Islamic Republic of Iran

* Iranian envoy says talk of deep-sea pipeline will delay the overland IPI gas pipeline
project for no reason


New Delhi
20 May 2008

The President of the Islamic Republic of Iran, Mr Mahmoud Ahmadinejad,
visited India on April 29. During a six-hour stay in New Delhi on his way home from
Colombo, Mr Ahmadinejad discussed bilateral, regional and global issues with the
President of India, Mrs Pratibha Devisingh Patil, and the Prime Minister, Dr Manmohan
Singh. He set a 45-day time table for India, Pakistan and Iran to come to a trilateral
agreement on the trination gas pipeline project. "India and Iran have decided to expedite
it," Mr Sayed Mahdi Nabizadeh, Ambassador of the Islamic Republic of Iran to India, said
in an exclusive interview to this newspaper. He said New Delhi's renewed interest in an
underwater gas pipeline may delay the India-Pakistan-Iran gas pipeline project for no
reason. The Iranian envoy tied the progress on the LNG (liquefied natural gas) deal to
the "will" of the Government of India. Mr Nabizadeh has been ambassador of Iran to
India since July 2007. He is no stranger to India; he studied civil engineering from
Bangalore University and worked as a representative of the Iranian National Steel
Company in India between 1982 and 1984. Excerpts:

Q: The President of Iran, Mr Mahmoud Ahmadinejad, visited India in the month of April.
He held talks with President Pratibha Devisingh Patil and Prime Minister Manmohan
Singh here. How did the talks go and how would you characterise the outcome of his
visit?
A: I am happy and pleased by the visit of President Mahmoud Ahmadinejad to India. It
was not an official visit. Mr Ahmadinejad was in New Delhi for six hours but there was a
very high, enthusiastic response to his visit. It materialised six years after the last visit
to India by an Iranian president. Mr Ahmadinejad met with the President and Prime
Minister of India. He also addressed a news conference towards the end of his visit.
General topics like trade and other matters of mutual interest came up for discussion in
his talks with President Pratibha Patil. She proposed strengthening of ties between the
youths of India and Iran. She referred the energy needs of India to suggest India and Iran
can cooperate constructively in the energy and other sectors of their economies. Mr
Ahmadinejad welcomed her proposal, and suggested the bilateral trade should be
increased three-fold, to 10 billion dollars. He said there was no limit to cooperation
between the two countries. He pointed out there is a lot of scope for developing the Indo-
Iranian bilateral ties but the two countries have not been able to realise the full potential
so far. Mr Ahmadinejad said Iran is ready for cooperation with India. In his talks with
Prime Minister Manmohan Singh, Mr Ahmadinejad discussed bilateral matters including
the trination gas pipeline project. Mr Ahmadinejad said India and Iran can play a big role
in the development of the region. Energy cooperation played a crucial role in the
development of the region, he added. Both sides decided to expedite the India-Pakistan-
Iran gas pipeline project. The oil ministers from India and Iran will continue talks and will
work in seriousness to sign the trilateral agreement. Both sides also discussed the
scope and extent of Indo-Iranian collaboration in the international arena. They
appreciated the role of India and Iran at the regional and international levels, and urged
increasing cooperation between them. Besides, it was agreed that the Joint Commission
will meet in July.

Q: When was the visit planned and how? The Iran President was expected to make a
refuelling halt but he ended up calling on the President and meeting with the Prime
Minister. It was an official visit, for all purposes.
A: A week or 10 days before the Iranian President was to arrive in India, the Embassy of
Iran in New Delhi suggested the Government of Iran to extend his stay here in New
Delhi. The Government of Iran then got in touch with the Government of India and the
Indian side welcomed it. That is how Mr Ahmadinejad came to spend six hours here and
conclude fruitful talks with the Indian leaders.

Q: Would the visit by the Iranian President suggest the Prime Minister of India will make
a reciprocal visit to Tehran soon?
A: The interior minister of Iran delivered an invitation to Prime Minister Manmohan Singh
when he visited New Delhi late last year. The Indian Prime Minister accepted the
invitation. I hope Dr Manmohan Singh can visit Iran in 2008. Iran looks forward to his
visit soon.

Q: What is the status of the talks on the trination gas pipeline?
A: India and Pakistan took a long time coming to any sort of decision, so the Iranian
President suggested a time table. That is why he proposed 45 days for the oil ministers
from India, Pakistan and Iran to arrive at a framework agreement. The ministers will
prepare their reports and present them to the leaders of the three countries for an
appropriate decision.

Q: So what are the prospects of a trilateral meeting of the heads of state and/or
government from India, Iran and Pakistan meeting to sign the gas pipeline project? Will
an agreement be signed if and when Tehran hosts the Indian Prime Minister?
A: It will depend on the three countries, where they want to sign the trilateral agreement,
how they want to sign it, and when. Iran will be happy to host the Pakistan President.

Q: India and Pakistan are still to come to any sort of understanding on certain issues of
the pipeline project. How hopeful are you of a resolution?
A: The technical issues have been discussed by the experts. I hope we can come to an
agreement soon. Some of the issues have been raised before, so raising them again will
be a waste of time.

Q: According to a report in the Indian media, New Delhi is showing a renewed interest in
a deep-sea gas pipeline from West Asia to India. How do you view this development?
A: This talk of an underwater gas pipeline bypassing Pakistan may delay the India-
Pakistan-Iran gas pipeline project for no reason. It is not a new issue anyway; it was
raised five or six years ago by the advisers on the Indian and the Iranian sides. They
realised that it will not only cost more to build it, because of the technology required to
lay a gas pipe at the sea bottom, but it will also cost more to maintain it. It might be more
secure than an overland pipeline but the experts then were of the opinion that an
overland pipeline was better than an underwater one. In the event of an accident, an
overland pipeline is easier to repair than an underwater one. Moreover, an overland
pipeline project will create job opportunities for the peoples of all the three countries -
India, Iran and Pakistan. Also, it will serve the cause of peace among the three countries
and in the region, too.

Q: What about the LNG (liquefied natural gas) deal between India and Iran? Why is it
taking so long to materialise?
A: The LNG deal is completely independent of the trination gas pipeline project. Media
tends to link the two together but it is actually not so. The National Iranian Oil Company
has to approve the deal. A memorandum of understanding was reached but certain legal
aspects needed to be looked into, for which discussions are continuing. In the meantime,
the price of LNG has risen and the LNG deal between Iran and India has to accommodate
the price differential. I hope matters are quickly resolved ... (pause) it all depends on the
will of the Government of India.

Q: How are the Indo-Iranian bilateral ties shaping up in the other areas, like connectivity,
economy and culture?
A: The Prime Minister of India raised the issue of Chabahar port in his talks with
President Ahmadinejad. India and Iran have agreed to push forward the development of
the port. The other infrastructure projects like the north-south corridor, railway and road
were also discussed. The India-Iran Joint Commission will meet soon. It will review the
political, economic and cultural ties. The Joint Commission has specific working groups
that deal with issues like energy, transport, information technology, telecommunication,
trade, culture and consular matters. Mr Ahmadinejad's visit has helped to conduct the
Joint Commission meeting in a better way. India and Iran have since concluded
preliminary discussions on the Joint Commission and we hope we will have a good
meeting when the Indian delegation visits Tehran.

Q: How would you describe the India-Iran economic ties?
A: Iran is liberalising its economy and privatisation is a serious issue in Iran since it
started about four of five years ago. Therefore a ground for foreign investment in Iran
has been laid and it is ready. Indian companies have shown an interest in making
investments in Bandar Abbas and Chabahar in Iran. Tata is interested in setting up a
steel plant. Essar is keen on a steel plant and oil refinery. The Government of Iran has
provided suitable pieces of land to Tata and Essar. In fact, Essar has already erected a
boundary on its land and is ready to begin construction on it. There were certain
problems like insurance and banking but we hope it will be resolved. The sanctions and
restrictions on Iranian banks are completely illegal. The United Nations resolution only
mentions that banking transactions related to nuclear programme need to be checked but
certain forces that deal in dollar transactions have created problems for us. We hope we
will quickly overcome those obstacles.

Q: On the Iranian nuclear issue, are you happy with India's attitude? Minister of External
Affairs Pranab Mukherjee has said that India supports Iran's right to peaceful use of
nuclear energy and India will not support any threats of violence against Iran over its
nuclear programme. He iterated India's position a few days ago while delivering a
speech on "India's Foreign Policy and India-Gulf Relations: Meeting the Challenges of
21st Century" at Abu Dhabi in the United Arab Emirates. He said the most effective
platform to address this matter is the International Atomic Energy Agency.
A: Yes, I am pleased that he iterated India's position during his recent visit to the United
Arab Emirates. He said the International Atomic Energy Agency is the only competent
and capable body which can address the Iranian nuclear issue. I welcome his remarks
that Iran is a stabilising force in the region.

Q: How do you see the situation in Iraq and Afghanistan? Is there scope for cooperation
between India and Iran in Afghanistan?
A: Iraq and Afghanistan are neighbours of Iran. Unrest and instability there will not only
affect Iran but the region, too. We have done our utmost and cooperated with the
international community for bringing peace and stability in our neighbourhood. Iran and
India offered help for the reconstruction of Afghanistan. We, Iran and India, worked
independently in Afghanistan but there was good support from each other. Iran tried its
best to ensure stability in Iraq, too. Fortunately Iraqi leaders are good friends of Iran and
the peoples of Iraq and Iran enjoy good relations. This people-to-people exchange is
good for the cause of stability and this is also what the peoples and the governments of
Iraq and Iran wish for. But unfortunately the United States is not doing anything for
stability in Iraq. The Americans keep blaming us. We hope the elected government of
Iraq remains independent and pursues the path of development. Iraq does not need help
from foreign forces. No doubt every country needs to maintain relations with other
countries of the world and no doubt Iraq will want to have economic ties with all
countries, so we as its neighbor will do what we can for them.

Q: How do you view the situation in West Asia? Recently Israel celebrated its 60th
anniversary. United States President George Bush was in Israel as part of a three-nation
tour of the region.
A: We do not accept the 60th anniversary of Israel. We regard it as the 60th anniversary
of the occupation of the Palestinain land by Israel. The history of the last 60 years is one
of oppression and repression of the Palestinian people and it is increasing with every
passing day. Palestinian civilians are being killed; it is innocent women and children,
not combatants, that are being killed. We hope the international community will realise
the rights of the people of Palestine. I hope the world will not let a few people impose
their will for their personal benefit. Unfortunately, the US presence in Iraq and
Afghanistan has given rise to more terrorism. We believe terrorism is an obstacle on the
path of development. Terrorism is one issue both India and Iran are unhappy with. Iran
has condemned the Jaipur serial blasts. Iran regards it as a terrorist act and we condole
the deaths of innocent people in the blasts.

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