The Islamic Republic of Iran, on Tuesday, decided to proceed with the construction of the railway line from Chabahar port to Zahedan, without India’s support. Iran has claimed that there has been a delay in funding from India for this project.
The project is spanned across four years and is proposed to be completed by March 2022. The Hindu reported that the country will continue without financial aid from India and will be using $400 million from the Iranian National Development Fund instead.
The unanticipated move by Iran comes four years after both the countries signed an agreement to construct the 628 km long railway line along the Iran-Afghanistan border.
With this announcement, Iran has already inaugurated the laying down process of the line, as reported by The Hindu.
It is imperative to note that this decision of dropping the deal comes right after Iran signed another agreement with China. As per News18, the $400 million worth partnership between both the countries is to strengthen the economic and security ties. This deal would affirm the mainland’s presence in banking, telecommunications, ports, railways and various other projects.
The mutually beneficial deal enables China to receive a heavy and highly subsidized supply of Iranian Oil for the next 25 years.
This agreement between both the countries promises mainland’s expansion in the economy and security of Iran. At the same time, it also threatens India’s diplomatic position in that region. This agreement was a part of the larger trilateral agreement between India, Iran and Afghanistan. This agreement was supposed to increase accessibility for trade and build an alternative route to Afghanistan and Central Asia.
Tehran has historically been New Delhi’s strategic ally and with the expansion of Chinese presence in the region, this relationship faces a threat. No statement has been received from New Delhi on this issue yet.
