Iran will help India and Pakistan end a deadlock on the issue of transit fees for natural gas to be imported by India from Iran through Pakistan.

Iranian President Mahmoud Ahmadinejad has constituted a four-member committee to hold talks with Pakistan and India on the transit fee to be paid by India to Pakistan for natural gas transported through the proposed $7.5-billion pipeline.

He has given the panel 45 days to settle the issue between the two countries and submit a report to him, the Daily Times quoted sources in Pakistan's petroleum ministry as saying.

Pakistan and Iran were expected to sign a bilateral gas sale-purchase agreement (GSPA) by 31 May for setting up the gas pipeline from Iran. It has now been deferred till the Iranian committee resolves the transit fee issue between Pakistan and India, the sources said.

Pakistan and India too could sign a gas transit fee agreement when the GSPA is signed by Iran and Pakistan, the sources said.

Iran hopes to sign a trilateral agreement for setting up the Iran-Pakistan-India gas pipeline by the middle of this summer.

The issue received added urgency after the Iranian president's talks with Prime Minister Dr Manmohan Singh during his brief stopover at Delhi on his way to Colombo.

Ahmadinejad, who informed Dr Singh about Pakistan's proposal on China joining the project, stressed that Iran wanted the pipeline to reach India first, adding, "All aspects of China joining the pipeline will be studied."

The petroleum ministers of India and Pakistan had, after talks on 25 April,  announced that the issue of gas transit fee would be addressed shortly, although no progress has been made as yet in the matter.

India had offered a gas transit fee of 15 cents per million British thermal units (MMBTU) whereas Pakistan had demanded 60 cents per MMBTU. They added that India had subsequently agreed to pay 30 cents per MMBTU as transit fee.

President Ahmadinejad has declared that Iran, India and Pakistan would resolve all issues concerning the pipeline within 45 days. If the project comes through, it will be the biggest energy project in the Asian region.