In a major peace initiative, India on Wednesday proposed to build pipelines to Pakistan if it provides long-term guarantees on buying petroleum products. India now has excess refining capacity and is exporting petrol and diesel, among other petroleum products, to various parts of the world, including Europe.
“We proposed exporting petroleum products and petrol to Pakistan. They have shown interest. We will work out the details in the next few weeks,” petroleum minister S. Jaipal Reddy said after meeting Pakistan’s oil minister Asim Hussain.
He said India was exporting petroleum products to distant countries, while Pakistan was importing them. Mr Reddy said the Pakistani minister “has kindly agreed to have this proposal considered within the ministry and the government there before responding”.
Dr Hussain said groups from both countries will meet soon to sort out the issue.
India has offered to export petrol, diesel, aviation turbine fuel (ATF), polyethylene and polypro-pylene, which Pakistan currently imports.
It was pointed out to Pakistan that it would save a lot in transport costs as several Indian refineries are close to the Pakistan border.
A India-Pakistan joint working group on petroleum and petrochemical products has been constituted recently to go into the specific details of facilitating trade in this sector. Both ministers agreed to advise their respective officials to hold the first meeting of the JWG at the earliest.
India currently has the refining capacity to process 193 million tonnes of crude oil annually, which is expected to rise to 232 million tonnes by 2012. India exports 59 million tonnes of petroleum products worth $43 billion annually.
Pakistan bans the import of petrol from India.
Pakistan had allowed diesel imports from India in 2009, but no Indian supplies were sent in the face of preferential prices offered by Pakistan’s Gulf allies.
On transit fees for the Turkmenistan, Pakistan, Afghanistan and India (Tapi) gas pipeline, both sides agreed that negotiations would be held in a transparent manner, keeping in mind the overall economics of the project and in accordance with international practices.
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| Federal Minister of Petroleum and Natural Gas of Pakistan Asim Hussain being welcomed by Minister for Petroleum and Natural Gas Jaipal Reddy during a meeting on the TAPI pipeline project in New Delhi |
He said India was exporting petroleum products to distant countries, while Pakistan was importing them. Mr Reddy said the Pakistani minister “has kindly agreed to have this proposal considered within the ministry and the government there before responding”.
Dr Hussain said groups from both countries will meet soon to sort out the issue.
India has offered to export petrol, diesel, aviation turbine fuel (ATF), polyethylene and polypro-pylene, which Pakistan currently imports.
It was pointed out to Pakistan that it would save a lot in transport costs as several Indian refineries are close to the Pakistan border.
A India-Pakistan joint working group on petroleum and petrochemical products has been constituted recently to go into the specific details of facilitating trade in this sector. Both ministers agreed to advise their respective officials to hold the first meeting of the JWG at the earliest.
India currently has the refining capacity to process 193 million tonnes of crude oil annually, which is expected to rise to 232 million tonnes by 2012. India exports 59 million tonnes of petroleum products worth $43 billion annually.
Pakistan bans the import of petrol from India.
Pakistan had allowed diesel imports from India in 2009, but no Indian supplies were sent in the face of preferential prices offered by Pakistan’s Gulf allies.
On transit fees for the Turkmenistan, Pakistan, Afghanistan and India (Tapi) gas pipeline, both sides agreed that negotiations would be held in a transparent manner, keeping in mind the overall economics of the project and in accordance with international practices.
India, Sri Lanka take steps to end fishermen's travails
India is for a formal pact, but Sri Lanka wants informal solutions to start with
India and Sri Lanka have intensified efforts to resolve the issue of fishermen from both countries plying their trade in a “limited pool of water,” according to officials briefing journalists on External Affairs Minister S.M. Krishna's recent visit to the island nation.
After a meeting of the Joint Working Group on Fisheries, when all problems were discussed, the two sides are looking at an interaction between fishermen, wherein some solutions are likely to be aired.
India was keen on a formal document with legal implications. Sri Lanka did not express its reluctance in as many words, but favoured informal solutions to start with.
Sustainable aquaculture
India presented a non-paper and proposed a variety of options for joint management of resources, setting up of bio-parks and promotion of sustainable aquaculture. “Our endeavour is to reach an agreement that addresses livelihood issues on both sides, and fishing takes place in a safe and secure manner,” informed sources said.
Asymmetry
India recognises that there is asymmetry on its side in terms of the number of boats and their size. “We felt that is natural because of the country's size. But this issue has been compounded by the Sri Lankan government's very stringent measures on fishing till the end of the conflict in July/August 2009. They are now getting back into the waters, and there is bound to be some situation in which there are competing claims for very limited resources,” the sources said.
Besides the Centre, the Tamil Nadu government has some measures in mind. These include creating harbours in the northern part of the State for mechanised boats to go straight to the Indian Ocean, bypassing areas that have limited resources. Tamil Nadu is also trying to phase out bottom trawlers by denying refinance or not renewing the licences.
The sources said the Sri Lankan government was very helpful when a cyclone hit the region late last month, leaving more than 40 Indian fishermen stranded in eight or nine Sri Lankan ports. Colombo hosted them, got their boats repaired and escorted them to the maritime boundary, where the Coast Guard took them under its wings.
The Sri Lankan government contrasts this with the treatment of their fishermen detained in the Indian States that do not have a joint interrogation team. On Andaman & Nicobar Islands, for instance, six Sri Lankan fishermen have been detained for two years with no end in sight to their travails, the sources said.
