NEW DELHI, Sept 6: Indian and Pakistani Oil Ministers are to meet to discuss the gas pipeline project that has been hanging fire for some years, Indian Foreign Minister Kunwar Natwar Singh said on Monday.

Speaking at a news conference after talks with his Pakistani counterpart, Mr Khurshid Mehmood Kasuri, Mr Singh said: "In our discussions we recognized the importance of availability and access to energy resources in the region around South Asia. We have agreed that the Ministers of Petroleum and Gas could meet to discuss the issue in it multifarious dimensions."

It was evident from Mr Singh's remarks that India was not going to go public whether it favoured the Central Asian pipeline through Afghanistan and Pakistan or an overland connection from Iran through Pakistan.

But the United States would be interested to know since only last week the United States Trade Development Agency signed a $690,000 grant to the Gas Authority of India Limited (GAIL), for the partial funding of a study to explore the feasibility of a national gas grid in India.

GAIL, a public sector enterprise under India's Ministry of Petroleum and Natural Gas, is undertaking this major energy infrastructure programme to build a natural gas transmission pipeline network that will eventually reach all major energy consuming areas in India.

The Ministry has identified this project as a major component of its long-term energy policy. India also wants to export diesel fuel to Pakistan but Pakistani officials said it was a bit early to air any optimism on that front.

The issue of export of diesel to Pakistan from India came up for discussions today during the talks on co-operation in the energy sector between the two countries. "(Diesel imports) have been discussed and we will take it up in detail when Petroleum Ministers of both countries meet," Foreign Minister Khurshid Mehmood Kasuri told reporters.