Iran-Pakistan-India gas pipeline project has been found technically possible but its economic viability will depend on the price at which Tehran sells the fuel, said Minister of State for Petroleum and Natural Gas Dinsha Patel.

India had appointed Ernst and Young as the financial consultant and ILF, UK as the technical consultant for preparation of the pre-feasibility report of Iran- Pakistan-India pipeline project.

"The project has been found to be feasible," said Patel in a written reply in Rajya Sabha.

The three nations are aiming at signing a framework agreement on the project by the end of next month.

"The price of gas against the alternate fuel prices will determine the economic viability of the pipeline project," he said.
Tehran has made a formula for determining gas price at the Iran- Pakistan border.

New Delhi is also formulating transporting tariff and transit fee to be paid to Pakistan for passage of the pipeline from its border.

However, he said the purchase of gas through Iran-Pakistan-India pipeline project would be decided only after the determination of gas price at Pakistan-India border.

According to officials, Tehran wants to sell natural gas to India and Pakistan at $4.93 per million British thermal unit ($60 per barrel crude oil price) including transportation tariff and transit fee.