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Lost opportunity: On India losing Chabahar project

Lost opportunity: On India losing Chabahar project

Lost opportunity: On India losing Chabahar project
Jul 14, 2020 1 min, 45 secs

Right from the beginning of its tenure, the government has underlined the geostrategic importance it attaches to the Chabahar port project.

Given that Pakistan had blocked Indian aid to Afghanistan and all trade over land, Chabahar provided India an alternative to permanently bypass its troublesome neighbour.

As a result, the government fast-tracked plans for the project, and in 2016, Prime Minister Narendra Modi was in Tehran to sign a trilateral trade and transit agreement with Iranian President Hassan Rouhani and Afghanistan President Ashraf Ghani.

According to the MoUs, India would be granted a 10-year lease to develop and operate two terminals and five berths, access to the Chabahar free trade zone, and the opportunity to build the 628 km rail line from Chabahar to Zahedan, just across the border from Afghanistan.

The government acted quickly to develop Chabahar port facilities, sent exports to Afghanistan in 2018, and has moved over half-a-million tonnes of cargo, including grains and food supplies, for Afghanistan again, through the port.

However, the rail line has never taken off for a number of reasons despite a commitment from state-owned IRCON, to undertake its construction at an estimated $1.6 billion.

Even though India was able to negotiate a sanctions waiver for the Chabahar port and rail line from the U.S., few international construction and equipment partners were willing to sign on to the project; New Delhi has also dragged its feet on the matter.

After appeals to India, including one issued by its Foreign Minister Javad Zarif when he visited Delhi in January this year, Iran decided to go on its own, by beginning to lay tracks for the line connecting Chabahar to Afghanistan and Turkmenistan, last week.

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