India for Asian version of IEA

India today said it would support, a Chinese suggestion for creating an Asian counterpart to the International Energy Agency (IEA) to help major oil importers in the region formulate long-term energy import policies.

"India stands ready to participate in such an alliance - but only in the cooperative spirit of the five principles of peaceful co-existence. We believe China will be of the same view," Minister of Petroleum and Natural Gas Mani Shankar Aiyar said here today.

In his address to a select gathering of Chinese oil company executives and experts, Aiyar, now on a three-day official visit to China, noted that the Development Research Centre (DRC) of the State Council, China's Cabinet, in a background paper, had suggested creating an Asian counterpart to the IEA through cooperation among China, India, Japan, South Korea and other nations.

Aiyar also said "aggressive" bidding between the two Asian giants in acquiring foreign assets have cost Beijing billions of dollars extra.

"But the fact is that aggressive bidding by either party only pushes up the price of the asset to the advantage of the seller and the disadvantage of both bidders," he said, emphasising that India did not view China as a strategic competitor, but as a strategic partner.

During a question-answer session after delivering a speech on "India and China in Asia's quest for energy security," Aiyar said, "In these circumstances, it just makes good commercial sense for us to exchange information well in advance about overseas assets so that we can take decisions well on time."

"Of course, the market will sometimes dictate that our companies submit competing bids. But if there is sufficient exchange of information, India and China could work together to the mutual advantage," he said.