The government will initiate action on building a pipeline from Iran via Pakistan by selecting financial consultants for the project next week. Five consultants are in the fray for the multi-billion dollar project after about two dozen bid documents were sold.
According to senior officials, IOC and GAIL (Ltd) had called for bids for appointment of consultants and the winning bid will be decided next week after the consultants make a presentation to senior petroleum ministry officials over two days. Once the selection is made, bid prices will be considered.
The consultants would be required to suggest project models for the execution of the project, based on which the petroleum ministry would seek Cabinet approval for participation in the project, which is estimated to cost around $7 billion, said officials. The time-frame for the consultants is likely to be two to two-and-a-half months.
"The consultants will also be asked to build into the project design conditions for addressing India's security concerns, incorporating international best practices," said the official. Officials said the consultants would be assisted by legal and technical experts.
The appointed financial consultants will also try to work out a formula for determining the delivered price of natural gas at India's border though a final settlement will be reached only after discussions among the state-owned companies.
Officials also said a joint working group, headed by Petroleum Secretary SC Tripathi, would hold a meeting with Pakistani counterparts next month after which the Indian delegation would go to Iran. India has also invited Pakistani and Iranian ministers to the country.