NEW DELHI, Dec 21: India's prime minister said on Tuesday that a long-running proposal to build a natural gas pipeline from Iran across Pakistani territory would help both India and Pakistan.

The $4-billion overland pipeline that would bring gas from Iran via Pakistan to India has been stalled for years because of political tensions between the two countries.

But Manmohan Singh told parliament he had discussed the pipeline during a meeting with Pakistan President Pervez Musharraf in September as part of efforts to build economic cooperation between the two countries.

"We feel such a project would have considerable mutual benefits," he said in a foreign policy speech to the lower house of parliament. He gave no details. In the past New Delhi has had reservations about receiving gas via Pakistan, fearing such a pipeline could be held hostage to its tensions with Islamabad.

Pakistan, which would earn hefty transit fees, has been keen on the project for years. Last month, fresh differences cropped up over the pipeline during a rare visit by Pakistan Prime Minister Shaukat Aziz to New Delhi as part of a regional tour. -Reuters