India will take further steps on the proposed Iran-Pakistan-India (IPI) gas pipeline after considering the economic feasibility and security aspect of the project.
The economic aspect will be the key in taking a decision on going ahead with the IPI pipeline, negotiations on which have not seen much progress over the last few years.
Also, in the context of IPI, relations with Pakistan come to fore, they said, hinting at the uneasy relations that India
and Pakistan have.
"Energy security is an aspect. If we seek reliable energy sources. Various aspects are to be considered," the sources said suggesting that it was not sure about the guarantee of assured supplies if the project takes off.
The sources said India has not closed doors on IPI project but it will take time to decide on the matter given the complexities involved. "So, the dialogue is going on".
Even while there is little movement on the IPI project, there is looming threat of UN sanctions on Iran over its controversial nuclear programme.
With regard to impending sanctions, India wants that common people should not be affected. At the same time, it wants Iran to work with the IAEA on nuclear issue as it is a signatory to the NPT.
About Indian companies doing business with Iran, the sources said they would take commercial decisions.
The Indian government would abide by the norms and conventions that are laid down by the United Nations.
However, the sources emphasised the importance Iran has for India in terms of energy security as also Afghanistan.
They insisted that there was no pressure from the US on India to keep off Iran. The US only wants to know India's outlook on the issue.
The US is currently consulting other permanent members of the UN Security Council Russia and China on the Iran sanctions issue and India is watching the developments.
Russia is said to be in favour of sanctions on Iran's nuclear programme. The sources sought to downplay the cancellation of visit by external affairs minister SM Krishna to Iran recently, saying it was only because of scheduling problems and there was "no need to read anything more".
They underlined that the visit by Krishna was merely to attend Navroz (new year) celebrations (of parsis) in Iran and not a return trip to that of Iranian foreign minister Manouchehr Mottaki.
Krishna is expected to travel to Tehran next month when Iran hosts the G-15 meeting.
Iran is also hosting a meeting on nuclear issue later this month. India has been invited for it and its ambassador in Tehran will attend it.
India is also discussing with Iranian authorities the issue of development of its Chabahar port that would give it access to Afghanistan through Iran.
The discussions relate to aspects like whether the port would be a Special Economic Zone, sources said.
India had built Zaranj-Delaram highway in Afghanistan, which was to be linked to the Chabahar port.
Sources said the linking of Zaranj-Delaram highway with Chabahar port was not difficult but there was no forward movement because the discussions on port development were inconclusive.
