Send a Tweet
Most Popular Choices
Share on Facebook 16 Share on Twitter Printer Friendly Page More Sharing
Exclusive to OpEdNews:
OpEdNews Op Eds    H4'ed 7/15/20

Iran expels India from strategic Chahbahar railway project as China-Iran finalize $400 billion deal

Author 65550
Message Abdus-Sattar Ghazali
Become a Fan
  (11 fans)

India was kicked out of key Iran railway project as China finalizes a $400 billion deal with Iran. Iran said that India was delaying funding.

The unexpected development comes four years after the two sides had reached an agreement to construct the 628 km rail line along the Iran-Afghanistan border.

Iran's decision to cancel India's participation in the project is coming in the backdrop of a fast-moving strategic deal with China. China and Iran are giving final shape to a colossal partnership package worth $400-billion, to be spread over the next 25 years.

Iran's 1350-Kilometer eastern railway is strategically important Iran that will connect Chabahar, Iran's only major port on the Indian Ocean, to Afghanistan and Central Asia with a potential to carry seven million tons of goods per year.

The $1.6 billion contract for the railways was signed during the 2016 visit of Indian Prime Minister Narendra Modi to Tehran.

India would have circumvented Pakistan and export its goods to Afghanistan and Central Asia via Chabahar.

According to the Hindu, "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 Hindu added that "the development comes as China finalizes a massive 25-year, $400 billion strategic partnership deal with Iran, which could cloud India's plans."

US SANCTIONS

The Hindu also pointed out that U.S. sanctions may have also contributed to pushing India out of the project.

The report added that despite surveys made by Indian engineers, the Indian Tracks Company did not take measures to start the project fearing the consequences of U.S. sanctions.

The daily quoted an Indian official as saying the United States has granted sanction waiver for this project, but under the sanctions, the Indian company found it difficult to supply equipment for the project. Nevertheless, the company says it might join the project again later.

CHINA FACTOR

The Economic Times opined that "Iran's decision to cancel India's participation in the project, coming at the backdrop of a fast-moving strategic deal with China, could soon whip up a storm in diplomatic circles.

The New York Times has reported that China and Iran have prepared a far-reaching commercial agreement that would offer Iran $400-billion in investment over 25 years in return for selling China a large proportion of the oil it produces over the same period.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

 

Rate It | View Ratings

Abdus-Sattar Ghazali Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Author and journalist. Author of Islamic Pakistan: Illusions & Reality; Islam in the Post-Cold War Era; Islam & Modernism; Islam & Muslims in the Post-9/11 America. Currently working as free lance journalist. Executive Editor of American (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Pakistan's first Prime Minister Liaquat Ali Khan was assassinated by America

U.S. Muslims condemn killings of American diplomats in Libya

Are we living in Orwell's 1984 Oceania surveillance state?

Saudi Air Force trainee opens fire at Naval Air Station in Florida killing 3 people

2001-2011: A decade of civil liberties' erosion in America -- Part One

2001-2011: A decade of civil liberties' erosion in America -- Part Two

To View Comments or Join the Conversation: