NEW DELHI, Feb 15: Indian state-run energy firms may bid for stakes in Pakistan’s Sui Southern Gas Co. Ltd., which is being privatized, a top Indian official said on Wednesday.

Indian Oil Corp. (IOC), the country’s largest refiner, and gas transmission firm GAIL (India) Ltd. have sought the Indian government’s approval to bid for a share of the Pakistani company, India’s Petroleum Secretary M.S. Srinivasan, told reporters.

“The ministry is considering their proposal. I think we should encourage them,” he said.

Officials say Indian firms would require government approval before bidding because of security considerations.

India and Pakistan have fought three wars but a slow-moving peace process, launched three years ago, has raised hopes of better business links.

Last month, Pakistan said it would sell a 51 per cent stake in Sui Southern Gas (SSGC) along with management control and invited expressions of interest by March 4.

SSGC is Pakistan’s second-largest gas transmission and distribution company, with a franchise area comprising the provinces of Sindh and Balochistan.

In December, the government also put up for sale a 51 per cent stake in Sui Northern Gas Pipelines Ltd. (SNGPL), Pakistan’s largest gas company.

India is also in talks to pipe Iranian natural gas across Pakistan to meet its energy needs, and export up to 120,000 tons of diesel to Pakistan, Srinivasan said.

“We’ll discuss all these issues with the Pakistani delegation in the next few days,” Srinivasan said.—Reuters