What is the issue?
- India should not lose the Chabahar port project in Iran, as it has a geostrategic importance.
- India’s loss in failing to develop the project might be China’s gain.
What is the concern?
- After many appeals to India, Iran decided to go on its own now.
- It began to lay tracks for the line connecting Chabahar to Afghanistan and Turkmenistan.
- Iran claims it will fund the railway using its own resources.
- But, it seems to have embarked on the Chabahar-Zahedan project with a confidence borne from an imminent deal with China.
- This deal with China is a 25-year, $400 billion strategic partnership on infrastructure, connectivity and energy projects.
What is the project about?
- The Chabahar port project was signed in 2003.
- It has been a symbol of traditionally important India-Iran ties.
- Connected by sea-lanes to ports on India’s west coast, Chabahar would form the fulcrum of India’s outreach to Russia and Central Asia.
- This enhances the connectivity, energy supplies and trade.
Why did India sign the 2016 agreement?
- Pakistan had blocked Indian aid to Afghanistan and all trade over land.
- But, Chabahar provided India an alternative to bypass Pakistan.
- As a result, the government had fast-tracked plans for the project.
- In 2016, India signed a trilateral trade and transit agreement with Iran and Afghanistan.
- According to the agreement,
- India was granted a 10-year lease to develop and operate two terminals and five berths, access to the Chabahar free trade zone.
- India got the opportunity to build the 628 km rail line from Chabahar to Zahedan, just across the border from Afghanistan.
How did India implement this 2016 agreement?
- The government acted quickly to develop Chabahar port facilities.
- Through this port, India sent exports to Afghanistan in 2018.
- It has also moved over half-a-million tonnes of cargo for Afghanistan.
- However, the rail line has never taken off despite a commitment from state-owned IRCON, to undertake its construction at $1.6 billion.
What were the hurdles?
- There were contract changes by the Iranian side.
- There were delayed responses from the Indian side.
- The main hurdle has been the fear of American penalties.
- However, India was able to negotiate a sanctions waiver for the Chabahar port and rail line from the U.S.
How Iran’s recent decision should be viewed?
- Regardless of the reasons for India’s inability to join the railway project, the decision can only be seen as an opportunity lost.
- The impression that India wavered due to U.S. pressure also questions New Delhi’s commitment to strategic autonomy.
What could be done?
- In a world where connectivity is seen as the new currency, India’s loss could well become China’s gain.
- New Delhi must watch this space, created by its exit, closely.
Source: The Hindu
