Iranian and Pakistani experts have started talks on the $7.4 billion Iran-Pakistan-India pipeline in Tehran without the participation of India, who says it will not attend the tri-nation meetings unless transit fee issue is resolved with Islamabad.

Iran had called a meeting of technical experts and lawyers from the three nations during September 24-26 to exchange views on the gas-supply contract that India and Pakistan, as consumers, would have to sign with fuel supplier Iran. Officials of the three countries were to then discuss the issue on September 27.

New Delhi and Islamabad have reached a broad understanding on the transportation tariff payable to Pakistan for wheeling natural gas through the 1,035-km pipeline segment in that country.

The new round of talks aims to finalise the text of contract on the pipeline in the presence of Pakistani experts, Tehran Times reported on Tuesday.

Iranian and Pakistani experts discussed the project on Monday and continued negotiations on Tuesday.

Ahmed Mokhtar, the energy adviser to Pakistani Prime Minister Shaukat Aziz, is attending the talks.

Iran plans to export 30 million cubic metres of gas to Pakistan per day if the two sides reach an agreement.

Pakistani Prime Minister Shaukat Aziz said the IPI project was at an advanced stage of negotiations.

The proposed 2,600 km long pipeline project is being built to deliver natural gas from hydrocarbon-rich from Iran to Pakistan and India.