TRANSPORTATION

Iran drops India from Chabahar rail project, cites funding delay

Four years after India and Iran signed an agreement to construct a rail line from Chabahar port to Zahedan, along the border with Afghanistan, the Iranian government has decided to proceed with the construction on its own, citing delays from the Indian side in funding and starting the project.

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 told The Hindu 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.

Trilateral agreement
The railway project, which was being discussed between the Iranian Railways and the state-owned Indian Railways Construction Ltd (IRCON)

Source
The Hindu
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