Five firms in race for Iran pipeline

Ernst & Young, KPMG and Standard Chartered are among the five consultants asked to submit bids for the proposed India-Pakistan-Iran pipeline.

India would appoint financial advisors for the proposed pipeline by next month, a senior Indian Oil Corporation executive said yesterday. Indian Oil and GAIL (India) were finalising the consultants for the gas pipeline.

KPMG, Ernst & Young and Standard Chartered have been asked to make presentations and submit their proposals, an executive said.

The consultants will be required to suggest project models for the execution of the work, based on which the petroleum ministry will seek the Cabinet's approval for participation in the project, wich could cost about $7 billion.

The report will be submitted by November, along with which, the petroleum ministry plans to take the Cabinet's approval.

"The consultants will also be asked to build into the project design conditions for addressing India's security concerns with international best practices," said the official. Officials added that the consultants would be assisted by legal and technical consultants.

The appointed financial consultants will also try to work out a formula for determining the delivered price of natural gas at India's border.