New Delhi May 2: Iran today said it wanted India to participate in the $7-billion pipeline project but insisted on the deal being wrapped up by August.

After a meeting with petroleum minister Murli Deora, Iran’s deputy oil minister Hadi Nejad Hosseinian said any delay beyond August would keep India out of the project, and the pipeline would stretch only till Pakistan.

The ministers also discussed the $22-billion LNG import deal but the deadlock persisted with Hosseinian indicating that unless India offers higher price for the LNG, Iran will not honour the June 2005 agreement.

Deora said after the meeting, “We are very serious on the pipeline issue and it's not me but the Prime Minister, who made the statement in Parliament that the pipeline is for peace and progress of the region.”

He denied any US pressure on India to withdraw from the project, that envisages distribution of natural gas from Iran to Pakistan and India through a pipeline.

“I don't think America is pressurising us on the issue. I think America cannot pressurise us to pull out of the project,” Deora said.

Hosseinian said “I want to clarify that contrary to reports, India has not been edged out of the Iran-Pakistan-India pipeline. We continue to engage in discussions leading to tri-nation ministerial meeting next month.”

Hosseinian said the pipeline would have a capacity of 110 million standard cubic metres per day (MMSCMD). Pakistan’s requirement is 30-60 units, while India needs 90 units.

“The demand will go up considerably over five years, and initially the capacities can be divided on a pro-rata basis,” Hosseinian said, adding that Iran was open to the idea of another pipeline to meet more demand.

On the LNG import logjam, Hosseinian said the price of $3.25 per million British thermal unit fixed by the previous government was inadequate. “As far as we are concerned, the deal cannot be implemented unless the Supreme Council ratifies it. The council has not done it till now because it wants certain changes,” he said.