New Delhi, Oct 2, IRNA -- The Japanese banking giant, Sumitomo Mitsui Banking Corporation, has evinced interest in financing the proposed Iran, Pakistan and India gas pipeline project provided there is equitable allocation of risks between the sponsors, contractors and project company, according to Corporation India's country head and head of its South Asia International Finance Department, Bharat Kaushal.

According to a press release of The Associated Chambers of Commerce and Industry of India (ASSOCHAM), a copy of which was received by IRNA on Saturday, Kaushal in his presentation on 'Financing of Energy Projects in South Asia' at the Energy Summit organized under the aegis of ASSOCHAM here, said that the project seems to be financially viable from the banking perspective provided talks among the highest level of polity of Iran, Pakistan and India on the proposed 1800-km gas pipeline proves to be conclusive and a final feasibility study on the project is favorably conducted.

Sumitomo Mitsui Banking Corporation is willing to finance such projects in South Asia region keeping in view the growing demand of energy in the region, said Kaushal on Wednesday.

He agreed with the view expressed by other experts present during the summit, saying that his corportation can also consider financing such mega pipeline projects under the regional cooperation head of the South-East Asia region.

Kaushal also indicated that on similar lines, his bank can also consider the gas pipeline project being talked about between Bangladesh and India.

According to him, gas consumption worldwide will increase by 2.8 percent per annum from 2004 to 2025 compared with 1.8 percent for oil and 1.5 percent for coal.

Natural gas consumption will also double from 90 tcf per annum at the present level to 176 tcf in 2025 and the natural gas share of total energy consumption will increase from 23 percent to 28 percent by 2025, he said.

Speaking on the occasion, Projects General Manager of the Indian Oil Corporation Ltd., K.G. Gupta, also supported the Iran, Pakistan and India gas pipeline project, regretting that 11 years have passed but the proposed project is still on paper.

He lent support to the idea of connecting the Iran, Pakistan and India proposed gas pipeline with the water treaty agreement between India and Pakistan in case of any eventuality arising out of any misunderstanding between the two countries.

Gupta hoped that the feasibility study on the project would be completed by October 2004 in view of the success of talks held recently betweem the Indian prime minister and Pakistani president on intensifying political and business ties between the two nations.