{"id":8991,"date":"2020-07-15T14:21:40","date_gmt":"2020-07-15T08:51:40","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=8991"},"modified":"2023-04-07T17:08:45","modified_gmt":"2023-04-07T11:38:45","slug":"iran-drops-india-from-chabahar-rail-project","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/iran-drops-india-from-chabahar-rail-project\/","title":{"rendered":"Iran drops India from Chabahar rail project"},"content":{"rendered":"
\n

Iran drops India from Chabahar rail project<\/h1>\n
Relevance: Prelims\/Mains: International<\/strong><\/span>\"Iran<\/p>\n

Why in news?<\/strong><\/p>\n<\/header>\n<\/section>\n

\n

\u2022 Recently, the Iranian government has taken decision to proceed with the construction on its own, citing delays from the Indian side in funding and starting the project.<\/p>\n

\u2022 This decision comes after four years of signing an agreement between India and Iran to construct a rail line from Chabahar port to Zahedan City.<\/p>\n

\u2022 The decision by Iran came after it finalized a massive 25-year, $400 billion strategic partnership deal with China. This move of Iran can cloud India\u2019s plan.<\/p>\n

Background:<\/b><\/p>\n

\"Chabahar<\/p>\n

\u2022 In May 2016, India, Iran and Afghanistan signed the trilateral agreement which envisaged the establishment of Transit and Transport Corridor connecting the three countries and Chabahar port in Iran to be used as cardinal hub transportation.<\/p>\n

\u2022 The agreement had the provision for the construction of a rail line from Chabahar port to Zahedan, along the border with Afghanistan which would serve as an alternate trade route to Afghanistan and Central Asia bypassing Pakistan.<\/strong><\/span><\/p>\n

\u2022 The state-owned Indian Railways Construction Ltd. (IRCON) had signed a Memorandum of Understanding (MoU) with the Iranian Rail Ministry for the development of the proposed railway line.<\/p>\n

Reasons behind dropping of India:<\/b><\/span><\/p>\n

\u2022 Despite several site visits by engineers, and preparations by Iranian railways, India never began the work, ostensibly due to worries that these could attract U.S. sanctions.<\/p>\n

\u2022 Though the U.S. government had provided a sanctions waiver for the Chabahar port and the rail line to Zahedan, it has been difficult to find equipment suppliers and partners due to worries of getting targeted by the U.S.<\/p>\n

\u2022 India has already \u201czeroed out\u201d its oil imports from Iran due to U.S. sanctions.<\/p>\n

\u2022 Iran and China are close to finalising a 25-year Strategic Partnership which will include Chinese involvement in Chabahar\u2019s duty-free zone, an oil refinery nearby, and possibly a larger role in Chabahar port as well. This may be a probable reason for India\u2019 dropping.<\/strong><\/span><\/p>\n

\u2022 There is a rumor that the Chabahar port will be leased to China surpassing India.<\/p>\n

Concerns for India:<\/b><\/span><\/p>\n

\u2022 The closeness of Iran and China further worry India due to the vast expansion of Chinese presence in various sectors of Iran including banking, telecommunications, ports, railways and numerous other projects.<\/p>\n

\u2022 The Iran-China deal is against India\u2019s \u201cstrategic ties\u201d<\/strong> with Iran and the use of Chabahar port.<\/p>\n

\u2022 The Bandar-e-Jask port lies to the west of Chabahar & right before the Straits of Hormuz and China would thus extend its control along the Pakistan-Iran coast.<\/p>\n<\/div>\n

 <\/p>\n

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