Report to determine pipeline dynamics: India

And once its possibility is established, New Delhi would consider whether it would be limited to state-run oil firms with the backing of the government of the three countries or it would be handed over to an international consortium that would fund and operate the pipeline to deliver gas at the doorsteps.

The report from the consultant has been targeted for November with a firm decision of India and Pakistan by December, said the official.

The two sides today approved the milestones to be adhered to in pursuing the project. They agreed that both countries would study the BHP Billiton pre-feasibility report and suggest modifications by August 31, finalise drafts for the pipeline project by September 30, and firm up commonality of approach for implementing the project by October 31, 2005.

This should be viewed in the context of Iran seeking an MoU, similar to the one it signed with Pakistan last month, setting a clear timeframe. However, India is not keen to sign an MoU until feasability talks are completed.

Today’s meeting was also an exercise in information-sharing among the two.

On Thursday, discussions would centre around the pipeline route, gas specification, pricing mechanism, transportation charges and transit fee, said sources.