Iran drops India from Chabahar rail project, cites funding delay, reports say
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New Delhi: Iran has dropped India from its rail line project from Chabahar port to Zahedan, along the border with Afghanistan, citing delays from the Indian side in funding and starting the project.
The decision comes four years after India and Iran signed an agreement to construct a rail line
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 Hindu reported.
Meanwhile, China finalized a 25-year, $400 billion strategic partnership deal with Iran
The railway project was meant to be an alternate trade route to Afghanistan and Central Asia.
Indian Railways Construction Ltd (IRCON) signed an MoU with Iranian Rail Ministry following Prime Minister Narendra Modi’s visit to Tehran to sign the Chabahar agreement with Iranian President Rouhani and Afghanistan President Ghani In May 2016.