Iran drops India from Chabahar railway project, citing delay in funds

July 14, 2020: The Iranian government has decided to proceed the construction of rail line from Chabahar port to Zahedan along the border with Afghanistan on its own citing delays in funds from India.

DY365
DY365
Iran drops India from Chabahar railway project

July 14, 2020: The Iranian government has decided to proceed the construction of rail line from Chabahar port to Zahedan along the border with Afghanistan, on its own, citing delays from the Indian side in funding and starting the project.

The agreement was signed between India and Iran four years ago.

Last week, Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track-laying process for the 628 km Chabahar-Zahedan line, which will be extended to Zaranj across the border in Afghanistan.

Officials said that the entire project would be completed by March 2022, and that Iranian Railways will proceed without India’s assistance, using approximately $400 million from the Iranian National Development Fund.

The development comes as China finalises a massive 25-year, $400 billion strategic partnership deal with Iran, which could cloud India’s plans.

The railway project, which was being discussed between the Iranian Railways and the state-owned Indian Railways Construction Ltd (IRCON), was meant to be part of India’s commitment to the trilateral agreement between India, Iran and Afghanistan to build an alternate trade route to Afghanistan and Central Asia.

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