New Delhi: Raising hopes on the finalisation of the much-delayed Iran-Pakistan-India gas pipeline, Iranian President Mahmoud Ahmadinejad tonight said the three countries will conclude discussions within 45 days for the implementation of the 7.4 billion-dollar project.

The decision to conclude all agreements within the specified time was taken at a meeting between Prime Minister Manmohan Singh and the Iranian leader on Tuesday night.

"We have come to an agreement that (Oil) ministers of the three countries will meet and finalise the cases and give conclusion to the leadership of their governments within 45 days... Afterwards, we will decide," he told a crowded news conference just before winding up his brief visit.

Describing it as a peace pipeline among the three countries, Ahmadinejad said the project had social, political and economic implications for Iran, Pakistan and India. We hope to finalise the gas pipeline (agreement) soon."

The 2,600-km project that is to supply natural gas from the Persian Gulf to energy-hungry nations has been pending finalisation for more than four years because of differences over cost issues. New Delhi had been boycotting trilateral talks on the project since mid-2007 saying it wanted to settle transit fee issues with Islamabad first.

India and Pakistan narrowed differences over the transit fee during the Oil ministers' parleys in Islamabad last week.

On the proposal to extend the pipeline to China, Ahmadinejad said "we have recieved one proposal. We will evaluate it and consider its merit and evaluate all aspects of the proposal (before taking a decision)." The Iranian President, who was here for just about six hours, brushed aside US reservations on the project saying the pipeline project would not be affected by the "bullying" by Washington which "does not want development anywhere." Describing Iran's relationship with India as "deep and historic", the President said the "two sides are too close to each other and hope in the future we will finalise the gas pipeline project." He, however, did not give such assuring words on the 22 billion dollar Liquefied Natural Gas (LNG) bilateral import deal New Delhi had signed with Tehran in 2005.

After the new government headed by Ahmadinejad came to power later that year, Tehran sought an upward revision of the LNG price, which was not acceptable to India.

To a specific question on implementation of the LNG deal by Iran, Ahmadenijad evaded a direct reply saying there were legal interpretations of the text of the agreement.

He did not elaborate but made it clear that it was not linked to India's vote against Iran at the IAEA on its nuclear programme.