India will not attend the crucial official level talks on the much talked about Iran-Pakistan- India (IPI) gas pipeline project scheduled to be held on September 27 in Tehran.

India is understood to have conveyed to Iran that it would like to resolve critical issues relating to transportation and transit fees with Pakistan before attending the tri-lateral meeting, Petroleum Ministry sources said here.
Iran has convened a three-day meeting of technical experts and lawyers from the three nations beginning from September 24, to exchange views on the gas-supply contract that India and Pakistan, as consumers, would have to sign with fuel supplier Iran.

The expert level meeting is scheduled to be followed by the Secretary level talks on September 27 to fine-tune the draft contract agreement.

India’s technical team from the Gas Authority of India Limited (GAIL), which was scheduled to attend the three-day expert level meeting, is not attending the meet, and this has been conveyed to the Iranian side, sources said.

At the tri-lateral Secretary level talks held in Delhi in July this year, both India and Pakistan opposed Iran’s last minute changes in the agreement on pricing of gas. Iran had agreed in principle to resolve the issues relating to transportation and transit fees.

At the July meeting, Iran had insisted on the insertion of a clause for revision in the agreed pricing formula every three years. But this was opposed by both India and Pakistan.

India and Pakistan had earlier agreed on the price formula proposed by Iran. Subsequently, Iran demanded revision in pricing formula every three years, based on international fuel prices and energy mix.

But at the New Delhi meeting at the bilateral level, India and Pakistan  reached an in-principle agreement on transportation charges on gas passing through Pakistan territory to India.