New Delhi: India has decided to drop out of the proposed $7 billion gas pipeline project from Iran via Pakistan.
Instead, New Delhi may prefer buying gas at its border.
Sources in the petroleum ministry said it is likely to suggest the government to enter into an agreement to buy gas from Iran at its border.
This could, however, mean that India will have to pay more for the gas.
The petroleum ministry is expected to approach the Cabinet shortly for a final decision in this regard.
In a note being prepared for the Cabinet, the petroleum ministry has suggested that New Delhi enter into an agreement only with Iran for purchase of gas at its border.
The ministry feels that setting up of an international consortium — comprising of state-owned firms of the three countries and global energy majors — could be a non-starter due to political and legal opposition from the US.
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