WASHINGTON, Jan 14: Construction of the Iran-Pakistan-India (IPI) gas pipeline may begin this year despite a strong US opposition, says a report prepared for the United States Congress.

The Congressional Research Service notes in the report on India’s relations with Iran that top Indian officials “insist the project is in India’s national interest and they remain ‘fully committed’ to the … venture, which may begin construction in 2007.”

The US objection, the report says, is based on the concern that India’s effort to seek energy resources from Iran will financially benefit the country Washington is trying to isolate.

The Iran-Libya Sanctions Act of 1996 requires the US president to impose sanctions on foreign companies that make an investment of more than $20 million in one year in Iran’s energy sector.

Indian firms have in recent years taken long-term contracts for purchase of Iranian gas and oil worth billions of dollars, but thus far differences over pricing have precluded sales.

The CRS report notes that India’s relations with Iran traditionally have been positive and, in 2003, the two countries launched a bilateral strategic partnership.

“Some in Congress also have noted with alarm reports of contacts between the Indian and Iranian militaries, although such contacts may be insubstantial,” the report concludes.