India to go ahead with Iran pipeline project

India has said it will go ahead with the $7 billion Iran-Pakistan-India gas pipeline project despite objections raised by the US.

"Talks are going on. When I was in Iran, I had mentioned categorically that we are interested in the pipeline and negotiations on the pricing are going on," External Affairs Minister Pranab Mukherjee told a TV channel.

Last week, US Energy Secretary Samuel Bodman had said Washington was opposed to India having the pipeline project with Iran as it was laying sanctions against Iran's nuclear policy.

India, on its part, has said commercial and economic viability would decide on the pipeline coming through.

Officials in the petroleum ministry say that the US pressure on India to pull out of the pipeline project would not affect them as "getting the gas from Iran is of the utmost importance after the failure to secure gas from Myanmar."

However, at almost $8 per million British thermal unit, the cost of the gas is worrying the government and industry officials alike.

The government has asked Pakistan to waive the transportation tariff and the transit fee that India will have to pay for the gas when the pipeline passes through Pakistan.

"Negotiations regarding this are still on. The $8 per million British thermal unit needs to be taken care of," the petroleum ministry official said.