Union minister for Petroleum & Natural Gas, Mani Shankar Aiyar, needs little introduction. Since he assumed office a little over a year ago, Aiyar has embarked on a global mission to ring fence India's energy security needs. The petroleum minister, who's famous for his wit and articulation, seemed just a little testy as he discussed a range of issues concerning his ministry with BT's Kumarkaushalam. Excerpts:

What are your views on a) disinvestment and privatisation; and b) merger of oil PSUs?

My views on disinvestment and privatisation are a matter of public record. Very, very unfortunately, an exchange of correspondence between what are called "Honourable Ministers" has been totally dishonourably purloined by a journalist and published in the papers. I am certain that your question arises from that newspaper story. I have nothing further to say.

What about your views on the merger of oil PSUs?

I have set up a committee called the Synergy In Energy Committee. It will submit its report very soon. I will then be able to apply my mind to what we need to do.

The US has expressed its reservations on the proposed Iran-Pakistan-India gas pipeline. Your comments.

No, there are none. And sorry; for you to say that today (June 18) is very unfair. (US Secretary of State) Condoleezza Rice made the US position completely clear. So, I don't think we need to muddy the waters by referring to the alleged us pressure. There is none.

Will the US stop international lenders from financing the project?

I am sorry to deprive you of a story. I am very, very sorry to make this interview extremely dull for you. But the fact is that there is no us pressure. And I am not going to indulge in hypothetical guessing games about the US mounting pressure on us later.

What assurances has Pakistan given (about the security and reliability of gas flows across its territory)?

The biggest assurance is that Pakistan has massive energy requirements for its own growth. Pakistan and India are not opposed to one another's interests here. With regard to other measures, the joint press statement issued by the Pakistani and Indian delegations in Islamabad on June 7, 2005 clearly specifies that we are working towards "a safe and secure world class project". Using that expression, we shall ensure that from our point of view-and from everyone's point of view-the project is (a) world class; (b) safe; and (c) secure.

But almost all past agreements-even the Shimla Agreement-have proved to be pieces of paper...

It's completely untrue. It's a scurrilous construction of India-Pakistan relations. One of the most important treaties signed between India and Pakistan was the 1960 Indus Waters Treaty. We've had some very serious conflicts and great periods of tension in the 45 years since then, but it has never been abrogated.

So this (Indus Waters Treaty) is what we bring to the table... in exchange for Pakistan allowing us to access gas from Iran? Are you looking at this kind of relationship (to make the project successful)?

I'm afraid, you obviously entertain the most serious doubts about Pakistani sincerity and intentions. I trust the Pakistanis when they say that they will address our security concerns. Therefore, in the course of the negotiations, I will test out whether the trust I have in their sincerity has been validated or not. I am not going to proceed on the assumption that these are dangerous people whom you must look at with suspicion.

We can't begin with the premise that these are dangerous people...?

If they are dangerous people, then why are you entertaining them at all? There has been significant improvements in India-Pakistan relations. I was the first Consul General of India in Karachi (during my time in the Indian Foreign Service). In the last 23 years, I've visited Pakistan 17 times. I think I know whom I am dealing with.

Will it be possible to arrive at a decision on the pipeline over the next six-seven months?

Well, I'm hoping that the preparatory work will have been done within six months so that we can proceed with the main negotiations.

How many (global oil equity) deals are available to us now? Can you mention some major ones?

We are about to start producing in Sakhalin-I. We are also producing (gas) in Vietnam. We are negotiating and are involved in exploration in Australia. Nearer home, we are participating in Myanmar's oil and gas sector. (See The Worldwide Search).

We are also talking about LNG (liquefied natural gas) deals; the one we signed in Tehran a few days ago has attracted worldwide attention: five million tonnes spread over 25 years. The deal is valued at..., I don't know..., maybe $22 billion (Rs 96,800 crore) or so.

At last count, we were actively involved in 14 countries. And we have established a presence in 47 countries. But that number keeps climbing. I think if I count again, I'll cross 50.

What role do you envisage for private oil companies like Reliance and Essar?

We are very very happy that Reliance and Essar are already present in several foreign countries. We look upon this as a national endeavour. If Reliance, Essar or any other private Indian player need our assistance in any manner, my ministry will be more than willing to extend a hand.

"Yes, there is competition with China, but no hostility in our relationship"

The Hindujas have recently aligned with various oil PSUs. Please comment.

Whether they have commercial agreements with these people (Hindujas) or not is a matter that you should address to the Navratnas and not to me. I am not involved at all.

What about facilitating an environment where healthy participation (between the private players and PSUs) is encouraged?

That's a different matter. Next (what's your next question?).

We have five different departments (power, nuclear, hydro-power, coal and petroleum) addressing our energy security concerns. Do you feel the need for a more unified approach?

Well, for a representative of a coalition government to suggest that we should reduce the number of ministries is to invite suicide. So I don't think the answer lies in reducing or increasing the number of ministries, but in much more effective co-ordination.

How do you see China: as a competitor, or as an ally in the sphere of oil diplomacy?

We signed the Panchsheela agreement with China exactly 50 years ago. It should be possible to establish a co-operative relationship with China within that framework. Yes, there's competition, but there's no hostility in our relationship.

What would you describe as the major achievement of your first year in office?

That I have succeeded in focussing attention within the ministry on the need to reach kerosene to the poorest in the land-in the quantities which they require and at a price which they can afford. And to his end, the (Union) Cabinet has cleared a pilot project for me to work out the new ideas that I have in 10 per cent of the blocks of the country. We have identified 623 such blocks. If, in the course of the next few months, I am able to demonstrate in these blocks that we do indeed have the means of reaching kerosene to the poor, this model can then be replicated across all the 6,000 blocks of the country, I think that will be the shiniest feather on my cap. That I think is the single most important initiative that I have taken. I hope that at the end of this financial year (2005-06) there will be a general acknowledgement that there has been a breakthrough on that front.