Assocham wants India to bypass Pakistan for gas pipeline with Iran.

India must fully exploit the economic opportunities from lifting of western sanctions on Iran and bypass Pakistan for import of natural gas from Iran, according to Assocham.

The industry body also suggested that it enhance its merchandise trade with the key West Asian strategic nation through signing of a preferential trade agreement (PTA).

'Lifting of western sanctions on Iran throws up a great opportunity for India to transport natural gas from Iran to Porbandar port in Gujarat, bypassing Pakistan -- the main sticking point for other multilateral projects of Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan-India (IPI),' it said.

Lifting of the sanctions holds the promise of starting an undersea pipeline project that could bring Iranian gas to India via the Arabian Sea, bypassing Pakistan.

'With the IPI pipeline still stuck and the TAPI pipeline yet to take off, the South Asia Gas Enterprises Pvt (SAGE) has proposed an under sea pipeline bypassing Pakistan's exclusive economic zone (EEZ) to transport up to 1.1 billion standard cubic feet per day of gas from Chabahar in Iran and Ra's al Jifan in Oman to Porbandar in Gujarat with a spur line to Mumbai later.

'The 1,200-1,300 km pipeline is set to cost around US$ 4.5 billion,' the chamber pointed out.

India is increasingly looking for opportunities overseas for natural gas. India, according to Assocham, needs to resurrect Iranian oil and gas projects stalled due to the international sanctions.

ET