NEW DELHI, Aug 18: India accused Pakistan on Wednesday of not doing its bit sincerely to check infiltration across the Line of Control but there were also moves afoot in New Delhi to endorse a proposal for an Iranian gas pipeline through Pakistan.

While Petroleum and Natural Gas Minister Mani Shankar Aiyar was reported to have backed the controversial pipeline in a letter to Prime Minister Manmohan Singh, the external affairs ministry shared its concerns over the alleged infiltration with the parliament.

Both the approaches may eventually become part of the talks between Dr Singh and President Pervez Musharraf when they meet in New York next month, informed sources said.

Mr Aiyar was reported to be "keen for the project to take off soon in the new atmosphere of peace prevailing between the two countries and with both nations talking of enhancing economic ties." He apparently argued that further delays would only push up costs.

A new argument that has emerged, but which is not necessarily accepted at the political levels, partly because of its hawkish slant, is that fears of Pakistan controlling a key area of India's economy were inherently neutralized by the fact that India controls Pakistan's water supply.

Informed sources told Dawn that these "worst case scenarios" were mainly voiced by non-governmental think tanks. The 2,500-kilometre pipeline from Iran to northwest India is estimated to cost about Rs3 billion while an undersea pipeline could cost almost 10 times as much.

According to one think tank the present atmosphere prevailing between India and Pakistan and where the next thrust is to be on economic ties, a gas pipeline could help bring about such a trust. Pakistan can earn about $500 million as transit fees.

Alongside the widely welcome hints, India's stance on the key issue of Kashmir was taking shape without any matching dramatic shifts. Minister of State for External Affairs E. Ahamed told the Lok Sabha that the Pakistani government has not taken any credible steps so far to dismantle the "terrorist infrastructure".

Recent reports have indicated efforts to revive some training camps and launching pads there, he said. Moreover, cross-border infiltration from Pakistan has also increased during June and July, the parliament was told.

There had been some decline in infiltration levels till May this year after the Nov 23, 2003 cease fire, but these had increased in June and July. Pakistan had "so far not taken any credible steps to dismantle the infrastructure of support to terrorism".

"Recent reports suggested efforts in the context of reviving some training camps and launching pads" in Pakistan, Mr Ahamed said. The United States has from time to time spoken about the need to end infiltration and dismantle "terrorist infrastructure" in Pakistan, he said.

"However, infiltration across the border and the Line of Control has not stopped and no significant steps have been taken to dismantle the infrastructure."