The proposed Iran-India gas pipeline through Pakistan will become a reality by 2010, Petroleum Secretary S.C. Tripathi said Friday.

The three countries are serious and committed to ensure that the project takes off, Tripathi said at the managing committee meeting of the Associated Chambers of Commerce and Industry of India (Assocham) here.

"Our internal estimates are that it will take another three years to visualise the project by involving the representatives of Iran, Pakistan and India," Tripathi said.

"One year will be spent on hard negotiations and another year will be required to obtain financial closures for the project. The gas should touch the Indian borders by 2010," he said.

The official said the petroleum ministry is working closely with the ministry of external affairs to follow the development with the partner countries.

"A four-member delegation returned from Iran today and I am yet to take a briefing from the delegation," Tripathi informed.

He ridiculed the cynicism about the project on security grounds, arguing that Iran will get a higher price for its gas while Pakistan will be able to source gas at an economical price.

India, he said, will get "gas at cheaper rates".

On the industry's demand for a regulatory body for the petroleum sector, Tripathi said: "The new look Petroleum and Natural Gas Regulatory Bill is expected to be tabled in the next session of parliament after it is approved by the cabinet."

The redrafted legislation would have a separate regulatory mechanism for petroleum products and the gas sector, which is still a developing market in the country.

"The new bill includes a specific clause that the regulations for the two (oil and natural gas) sectors will be different," he said.

On the proposal to set up strategic crude storage, Tripathi said: "Currently, refineries keep reserves to meet 45 days' demand. With the completion of strategic crude oil reserves, we will have the total reserve capacity of 90 days."