India's petroleum minister has that the proposed $7.4 billion gas pipeline from Iran through Pakistan was a risky proposition and could face financial problems.
"The Iran-Pakistan-India gas pipeline is fraught with terrible risks. It will be extremely difficult to put together an international consortium to finance the project," Petroleum Minister Mani Shankar Aiyar told reporters. He didn't elaborate.
But he said India would continue talks with both Iran and Pakistan on the project.
"God willing, we'll succeed," Dow Jones Newswires quoted Aiyar as saying.
Earlier this month, India and Pakistan held talks on financing the 2,775-kilometre (1,735-mile) pipeline, pricing and sharing the gas, and security. Both sides are scheduled to meet again next month to discuss a framework agreement on the project.
He declined comment when asked whether the project was facing difficulties because of the United States voicing reservations and asking India and Pakistan to explore alternative energy sources.
Washington has no diplomatic relations with Iran, and wants to keep international pressure on Tehran over its nuclear programme.
Iran had proposed the project in 1996, but it was stalled for nearly eight years mainly due to India's reluctance to join because a large section of the pipeline would pass through India's archrival, Pakistan.
However, improvement in their relations since January 2004 have revived talks on the pipeline that would help India bridge its widening energy deficit and yield millions of dollars to Pakistan in transit fees.
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