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'Our Loss, China's Gain': Iran Drops India From Chabahar Rail Project, Cites Delay In Funding
Writer: Navya Singh
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India, 15 July 2020 7:18 AM GMT
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The development comes as China approves a massive $400 billion strategic partnership deal with Iran.
The Iranian government has dropped India from Chabahar rail project, citing delays from India in funding and beginning the project.
The decision comes four years after India and Iran signed an agreement to construct a rail line from Chabahar port to Zahedan, along the Afghanistan border. The Iranian government has now decided to go ahead with the construction on its own, using about $400 million from the Iranian National Development Fund.
The development comes as China approves a massive $400 billion strategic partnership deal with Iran.
Last week, Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track-laying process for the 628 km Chabahar-Zahedan line.
The entire project is expected to be completed by March 2022.
The railway project was considered a 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.
In May 2016, Prime Minister Narendra Modi visited Tehran to sign the Chabahar agreement with Iranian President Rouhani and Afghanistan President Ghani, IRCON had signed an MoU with the Iranian Rail Ministry. The MoU was to construct the Chabahar-Zahedan railway as "part of transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan".
However, India never started the work due to worries that these could attract U.S. sanctions, The Hindu reported.
After dropping India, Iran and China are now looking at finalising a 25-year Strategic Partnership with Chinese involvement in Chabahar's duty free zone and possibly a larger role in Chabahar port as well.
Hitting out at the Narendra Modi-led government, the Congress on July 14 called it a "big loss" for the country even as it questioned the diplomatic tactics of the Centre.
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