India no longer part of Iran’s Chabahar rail project

Two countries signed agreement four years ago
Jul 14, 2020
A partial view of the Kalantari port in city of Chabahar on May 12, 2015. Photo: AFP
A partial view of the Kalantari port in city of Chabahar on May 12, 2015. Photo: AFP

India has been dropped from Iran’s Chabahar rail project over funding delays, according to The Hindu.

The two countries had signed an agreement four years ago to construct the 628-kilometre railway line along the Iran-Afghanistan border. It was signed between the Indian Railways Construction Ltd, and the Iranian Railways as part of a trilateral project between India, Iran and Afghanistan. It aimed to set up a new trade route to Afghanistan and Central Asia.

Related: Iran and India agree to speed up Chabahar port project

India had agreed to provide $1.6 billion for "all services, superstructure work and financing," according to the Hindu.

The line, which will run from Chabahar to Zaranj in Afghanistan, was expected to be completed by March 2022. The investment, however, slowed down over concerns following US sanctions on Iran.

Iran has now decided to fund the project itself at a cost of $400 million.

Last week, Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track-laying process railway line.

Abhishek Manu Singhvi, the spokesperson of India’s Congress party, said on Twitter that the development was a “big loss” for India.

Chabahar port lies on the Indian Ocean about 100 kilometres (62 miles) west of the Pakistan border.

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