NEW DELHI: Even as the Ministry of External Affairs (MEA), last week tried to limit the damage from the cancellation of the Irnian President’s visit, Teheran’s decision has thrown up question Marks over the future of economic links between India and Iran.
A five billion dollar pipeline to Supply Iranian natural gas to India, a 900 mw thermal power Project in Iran and a strategic transportation route for India to Central Asia via Iran are among several Indo-Iranian ventures which have been projected as the outcome of improved relations between Teheran and New Delhi in the last two years.
All these presuppose an excellent political rapport between the Leadership in New Delhi and Teheran in view of the strategic importance of these projects and the political nature of the Iranian state. Analysts here believe the cancellation of Ali Akbar Hashemi Rafsenjani’s visit to India will have a ripple effect on the progress of all these projects which involve roles for government agencies on both sides.
As it is powerful sections of the Indian government have been opposed to putting more eggs in the Iranian basket in view of Iran’s leadership role in the Islamic world and its historic and perceived proximity to Pakistan.
Recently, for Instance, India turned down an offer from Iran to enhance its supply of crude from three million tuns a year to have five million tuns, Such an increase would have made Iran the second biggest source of India’s oil imports next to Saudi Arabia. But India’s petroleum officials did not favor such heavy strategic dependence on Iran, especially since the oil market was no longer a seller’s market, The same caution is now certain to be doubly reflected in all the strategic projects involving Iran, especially the gas pipeline and the surface transport link with Central Asia.
Article extracted from this publication >> October 21, 1994
