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Round The World
India-Iran Ties
US WATCHES AHMADINEJAD VISIT
By Dr. Monika Chansoria
(School of International Studies, JNU)
New Delhi, May 05, 2008
Iranian President Mahmoud Ahmadinejad’s brief
‘working visit’ to New Delhi as part of his South Asia tour
last month, was expectedly aimed at intensifying ties between
the two countries. Deliberations in numerous key sectors
ranging from energy, the Iran-Pakistan-India gas pipeline
project, talks on two multi-billion dollar energy deals and
bilateral investments were on agenda.
However, the visit was shrouded with controversy even before
Ahmadinejad’s arrival in New Delhi. The United States, which
is keeping a close tab on the Iranian President’s movement in
South Asia, appeared to be at unease with India-Iran ties as
clearly reflected in the statement issued by the US State
Department deputy spokesman Tom Casey: “New Delhi should urge
Iran to curtail its nuclear programme and to cease enriching
uranium. India should also put pressure on Iran to become a
more responsible actor on the world stage and ask Iran to end
its rather unhelpful activities with respect to Iraq.” Casey
was obviously pointing towards Tehran’s support for promoting
terrorism in Iraq.
The American statement didn’t go down too well with the
Ministry of External Affairs. In its statement, New Delhi
sought to rebuke Washington by stressing, “India and Iran are
ancient civilizations whose relations span centuries. Both
nations are perfectly capable of managing all aspects of their
relationship with the appropriate degree of care and attention
and neither country needs any guidance on the future conduct
of bilateral relations.” Obviously, indicating that
Ahmadinejad’s trip had triggered diplomatic barbs between New
Delhi and Washington.
Further, Foreign Minister Pranab Mukherjee appeared to placate
Iran by suggesting to the US that New Delhi has always pursued
an independent foreign policy. At the same time, not wanting
the statement to be a subject of annoyance with the Americans,
Mukherjee said: “We are advising Iran that since it is a
signatory of NPT, it has some obligation to international
treaties. We tell the US, do not take on yourself the
responsibility whether Iran was manufacturing weapons or not.”
Ahmadinejad’s visit came at an opportune time for both
nations, since the past months were not exactly downy
vis-à-vis bilateral ties between Tehran and New Delhi. The
former was apparently incensed by India’s vote against it at
the International Atomic Energy Agency (IAEA). As a matter of
fact, India cast its vote in 2005 in favour of a resolution
finding Iran in ‘non-compliance’ with its safeguards’
obligations under the NPT and expressing ‘the absence of
confidence that Iran’s nuclear programme is entirely for
peaceful purposes.’ Such statements indeed make it amply clear
the American pressure on India to go against Iran was
critical.
Moreover, the findings are under Articles XII and III, of the
IAEA Statute, both of which mandate referral of the matter to
the Security Council and hold out a thinly veiled threat of
sanctions and other punitive measures. Reacting sharply to New
Delhi’s vote, Tehran had threatened to reconsider its economic
cooperation with India in September 2005. Ahmadinejad’s visit,
however, was viewed as an opportunity to iron out these
differences with Iran.
India has ever-mounting demands for energy. It imports over 70
per cent of its energy needs and desperately searches for
energy partners to secure new supplies of oil and gas from
abroad, other than revamping up domestic production to sustain
its blooming economic growth. New Delhi deems Tehran, which
has the world’s second largest known oil and gas reserves
after Russia, to be a long-term energy partner.
Furthermore, New Delhi intends to revive a 2005 agreement that
never got implemented thanks to the rising price of oil
dramatically soon after. This agreement aims at importing 5
million tonnes of liquefied natural gas (LNG) from Iran.
President Ahmadinejad’s visit might act as a catalyst in
enhancing ties between the two nations particularly in the
energy sector.
The Iranian President’s visit could well have boosted Indian
state-owned ONGC’s chances of buying an equity stake in phase
12 of South Pars block in Iran. Apparently, Tehran has set a
June 2008 deadline for Total Company of France and Royal Dutch
Shell to finalize a deal to develop phase 11 and 13 of the
South Pars or it would consider allocating the blocks to other
firms. In case of a failure of meeting the deadline by the
above-mentioned companies, India holds a chance to grab the
opportunity to develop phase 11 and 13 of the South Pars block
among other Asian companies that might be in consideration as
well.
Another prominent issue that came up at talks was the
Iran-Pakistan-India gas pipeline project. The $7.6 billion
project that would eventually supply gas to India via Pakistan
through a 1,615-mile pipeline was dubbed as the ‘Pipeline for
Peace and Progress.’ However, the project is unable to get
past the jinx since it began in 1994. The plan has been
stalled by disagreements over pricing and transit fees in
addition to the incessant political discord between India and
Pakistan.
New Delhi has been boycotting trilateral meetings on the Iran
pipeline since mid-2007, citing that it wanted to first
resolve the issues of transit fees and transportation tariffs
with Pakistan. The proposed pipeline would initially carry 60
million cubic meters of gas daily to Pakistan and India, half
for each country. The capacity would, at a later date be
raised to 150 million cubic meters.
It is, however, said that India and Pakistan are expected to
be just ‘days or weeks away’ from finalizing terms for the
cross-border pipeline to import gas from Iran following talks
in Islamabad on April 25. Following discussion on
transportation tariff and transit fees, both Petroleum
Minister Murli Deora and his Pakistani counterpart Khawaja
Muhammad Asif told a joint press conference that: “We have
agreed upon the fundamentals of the agreement. The whole
process should not take a long time, may be few days or few
weeks and the agreement will be concluded.” It appears that,
the meeting was well-timed as both nations realized that
pipeline diplomacy would likely be a core feature of the
Iranian President’s visit.
Even though India would ideally not want another nuclear
entity in the neighbourhood, it is likely to restate that Iran
has the right to peaceful use of civilian nuclear energy.
Clearly, in its dealings with Tehran, India is walking a tight
rope since it tackles the conflicting imperatives of domestic
politics with its strategic interests skillfully matching
them.
Understandably, India appears to be in a quandary over the
US-Iran conflict where spiraling Indo-US ties make it
imperative for New Delhi to balance its relations with
Washington and a galloping economy pushing it to forge
collaboration with Tehran. Notwithstanding the growing
American pressure, particularly after the signing of the
India-US civilian nuclear energy cooperation agreement, brawny
domestic constraints still loom large and prevent India from
completely abandoning its ties with Iran.---INFA
(Copyright India News & Feature Alliance)
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