Iran drops India from Chabahar rail project

Iran took this decision as no funds were given for the project even after 4 years

Despite Chabahar port being very important for checkmating the Gwadar port that was built by China in Pakistan, to lose this project was not expected of India.

Tehran (Iran) – Iran has decided to remove India from the Chabahar railway project. The reason for the cancellation of the project is that India was delaying the funding for the project for the last 4 years. Iran has now decided to go solely with this project. It has been said that Iran’s decision has given India a big setback.

It was proposed to construct the 628 km railway line from Chabahar port to Zahedan. Last week, Iran’s Transport and Urban Development Minister Mohammad Eslami had inaugurated the track-laying process. The entire project along the border with Afghanistan was supposed to completed by March 2022. Iran railway officials stated, ‘we will proceed without India’s assistance, using approximately $400 million from the Iranian National Development Fund. Earlier the project was being completed by the Indian Railways Construction Ltd (IRCON). The Chabahar project would have been an optional route to connect India with Afghanistan and other Asian countries. For this project, there was a trilateral agreement between India, Iran and Afghanistan.

(Courtesy: Economic Times)

The agreement was made in 2016

In 2016, Prime Minister Narendra Modi had visited Iran and signed the Chabahar agreement. As per the pact, $1.6 billion was the expected amount for the project. The Indian engineers also had visited the site in Iran, but with the US imposing sanctions on Iran, India never started the work on the railway line. Also, India has reduced oil imports from Iran.

Chabahar port is very important to India

‘Big loss, China gave better deal’: Congress hits out at govt as Iran drops India from Chabahar rail projecthttps://t.co/AVeuJAGoLa

— The Indian Express (@IndianExpress) July 14, 2020

As the Chinese-run Gwadar port in Pakistan is 100 km away from Chabahar port, the participation in this project was very important for India so that it could garner checks over Pakistan and China.

A $400 billion agreement to be signed between China and Iran

Meanwhile, a $400 billion agreement for 25 years is to be signed between China and Iran, said the sources. Under this agreement, Iran will be supplying oil and gas to China at cheaper rates and China will supply advanced weapons to Iran.