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India, Iran to explore trade, transit facilities

NEW DELHI: External Affairs Minister Pranab Mukherjee will visit Iran from November 1 to attend a Joint Commission meeting during which the two countries are likely to sign three agreements and explore ways of improving trade and transit infrastructure.

Tehran hopes that the two sides will be able to discuss the Iran-Pakistan-India gas pipeline, whose trilateral future hangs in the balance because of New Delhi’s sensitivity over the transit route through Pakistan.

Iranian diplomats here feel that with the conclusion of the India-U.S. nuclear deal, New Delhi could be willing to make a forward movement on the project.

Indian sources said the focus would be more on improving the economic climate for Indian companies interested in operating in Iran. Which is why New Delhi would want a double tax avoidance agreement signed during Mr. Mukherjee’s visit. While Essar is setting up an aluminium unit and interested in operating a jetty at the Chabar port, Tata Steel recently signed an agreement to build a steel plant near the Strait of Hormuz.

This is in line with the perception that the American aversion to doing trade with Iran has ebbed after the U.S. intelligence absolved it of complicity in nuclear bomb making activity. Since then, Austria and Switzerland have signed agreements to build a gas pipeline running through Turkey with a terminal in Croatia and several corporates have opened talks with Tehran for investing in the country.

However, there is a difference of perception between India and Iran on the pipeline. Iranian diplomats hope that even though Tehran and Islamabad have decided to go ahead with the project, they will be able to discuss the prospects of convincing India to take the talks forward.

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