March, 15 2005	Tuesday	04 Safar 1426

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NEW DELHI, March 14: India, seeking a gas pipeline from Iran through Pakistan, appeared on Monday to be considering ways to limit the damage should the ongoing verbal duel between the United States and Iran turn into an ugly standoff, thereby disrupting $4.5 billion project.

Amid clear indications that US Secretary of State Condoleeza Rice would take up the issue with her interlocutors during a day-long visit to New Delhi this week, American diplomats have been busy suggesting to New Delhi that the deal would be unwise.

Indian Petroleum Minister Mani Shankar Aiyar responded to the US signals by saying cryptically that American concerns had been noted by New Delhi.

India’s Ministry of Oil and Natural gas has added a new point to ensure that no harm was done to India’s interests regardless of the American prophecies or action in the Gulf.

“India’s investment interest will not be affected,” the ministry said in remarks quoted on Monday. Informed sources said Mr Aiyar was locked in detailed discussions on Monday with the foreign ministry’s point person on Iran and Pakistan ahead of Ms Rice visit.

Business Line newspaper said India was seriously considering the consequences of heightening US-Iran standoff on its proposed agreement with Tehran due to be signed in June.

“This agreement will not result in any financial loss for us, if such an intervention happens,” the newspaper quoted oil ministry sources as saying.

“The agreement with Tehran will be for the delivery of natural gas on the Indian border. The approach for the agreement will be supply and pay or take and pay. This would ensure that Indian interest is not adversely affected.”

The Indian government is also working out alternate mechanisms in case gas supplies from Iran are disrupted for any reason, the report said.

These include creation of gas storage facilities and sourcing of more LNG from other producers so that Indian companies dependent on the gas supply from Iran are not affected, the source told Business Line.