India, Pakistan ease differences over transit fee

New Delhi, May 1 (UNI) Moving a step closer to signing a tripartite agreement for the India-Pakistan-Iran gas pipeline on time, India and Pakistan have narrowed down their differences over the transit fee.

''The differences with Pakistan over the transit fee have narrowed down. Now it looks achievable to sign the tripartite agreement by June-end,'' a source said.

For transporting gas from Iran, India is to pay the fee to Pakistan for the 1,035 km pipeline segment that will pass through Pakistan.

For this, Pakistan had demanded much higher fee to allow its territory to be used for the passage of the pipeline, thereby, threatening to derail the 7.4 billion dollar project.

Pakistan has climbed down from its earlier demand of 1.57 dollar per million British thermal unit to 0.70-0.75 dollar per mBtu as transportation tariff.

While, India is willing to pay not more than 0.55 dollar per mBtu that is 220 million dollar annually.

On transit fee, Islamabad is seeking 0.493 dollar per mBtu while New Delhi has offered 0.20 dollar per mBtu.

Iran wants to sell natural gas to India and Pakistan at 4.93 dollar per mBtu (at 60 dollar per barrel crude oil price).

Transportation tariff and transit fee are in addition to this price.

UNI