Question: Consider the following statements:
(a) Iran had decided to proceed with the Chabahar port rail project by itself which involves construction of 628 km rail line from Chabahar port to Zahedan.
(b) Developing Chabahar port provides an alternate trade route to Afghanistan and Central Asia bypassing Pakistan.
Of the above correct statement/s is/are:
(a) Only 1
(b) Only 2
(c) Both 1&2
(d) None of the above
Answer: (c)
Related facts:
- Iran had decided to proceed with the Chabahar port rail project by itself citing funding delays from India.
- The construction of 628 km rail line is proposed from Chabahar port to Zahedan in Iran,along the border with Afghanistan.
- The rail line will be extended to Zaranj across the border in Afghanistan.
- The entire project will be completed by March 22 with $400 million sanctioned by the Iranian National Development Fund.
Background:
- In May 2016, India, Iran and Afghanistan have signed pact for Trilateral Transport & Transit Corridor through Afghanistan that could help halve the time and cost of doing business with Central Asia and Europe.
- This entails the development of strategic port of Chabahar in Iran as one of the regional hubs for sea transportation.
- The railway project was meant to be part of India’s vow to the trilateral deal between India, Iran and Afghanistan to develop an alternate trade route to Afghanistan and Central Asia bypassing a hostile Pakistan.
- Earlier for the so purpose, IRCON had signed an MoU with the Iranian Rail Ministry.
- Indian Railways Construction Ltd (IRCON) had promised to provide all services, superstructure work, and financing for the project (around $1.6 billion).
- The port is being considered crucial for trade among the three countries in the wake of Pakistan denying transit access to India.
Reasons for the expulsion:
- India never began the work, fearing of sanctions by the USA.
- Although the U.S. had provided a sanctions waiver for the Chabahar port and the rail line to Zahedan, but it has been difficult to find equipment suppliers and partners due to worries that they could be targeted by the U.S.
- India has already “zeroed out” its oil imports from Iran due to U.S. sanctions.
- Another reason of the expulsion being the Iranian move to finalise a sweeping 25-year economic and security partnership with China worth $400 billion.
- The partnership would vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects.
- In exchange, China would receive a regular — and, according to an Iranian official and an oil trader, heavily discounted — supply of Iranian oil over the next 25 years.
- Also,Iran proposed a tie-up between the Chinese-run Pakistani port at Gwadar and Chabahar in 2019 and offered interests to China in the Bandar-e-Jask port 350 km away from Chabahar, as well as in the Chabahar duty-free zone.
Chabahar Port:
- Chabahar Port is a seaport in Chabahar located in southeastern Iran, on the Gulf of Oman.
- It serves as Iran’s only oceanic port, and consists of two separate ports named Shahid Kalantari and Shahid Beheshti.
Importance of Chabahar Port to India:
- The foremost significance of the Chabahar port is the fact that India can bypass Pakistan in transporting goods to Afghanistan. Chabahar port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.
- Chabahar port will be beneficial to India in countering Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port. Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
- With Chabahar port becoming functional, there will be a significant boost in the import of iron ore, sugar and rice to India. The import cost of oil to India will also see a considerable decline. India has already increased its crude purchase from Iran since the West imposed ban on Iran was lifted.
- Chabahar port will ensure in the establishment of a politically sustainable connectivity between India and Afghanistan. This is will, in turn, lead to better economic ties between the two countries.
- From a diplomatic perspective, Chabahar port could be used as a point from where humanitarian operations could be coordinated.
- The Zaranj-Delaram road constructed by India in 2009 can give access to Afghanistan’s Garland Highway, setting up road access to four major cities in Afghanistan – Herat, Kandahar, Kabul and Mazar-e-Sharif.
By-Amar Mani Upadhyay
Links:
https://www.thehindu.com/news/national/iran-drops-india-from-chabahar-rail-project-cites-funding-delay/article32072428.ece
https://indianexpress.com/article/india/india-iran-chabahar-port-rail-project-china-6505191/
https://www.indiatoday.in/fyi/story/chabahar-port-iran-importance-to-india-pakistan-afghanistan-1028342-2017-08-07
https://en.wikipedia.org/wiki/Chabahar_Port#:~:text=Chabahar%20Port%20also%20provides%20direct,from%20India%20to%20Central%20Asia.