Iran drops India from Chabahar port rail project over funding delay: Report

India has, however, refuted the report saying it remains committed to the rail project

The Iranian government had decided to drop India from the project to construct a rail line from Chabahar port to Zahaden along the border with Afghanistan, and proceed on its own, citing delays from the Indian side in funding and starting the project, The Hindu reported on Wednesday. "Iranian Railways will proceed without India’s assistance, using approximately $400 million from the Iranian National Development Fund," said the report. 

The Indian government has, however, denied the report. The Times of India on Wednesday reported quoting government officials that "New Delhi remained committed to financing and building the railway and was continuously engaged with Iranian authorities concerned to take this important project forward."

What is this project?

India had signed an agreement with Iran to construct a rail line from Chabahar port to Zahedan, along the border with Afghanistan, four years ago.

The Chabahar port -- being jointly developed by India, Iran and Afghanistan. The three countries consider the port, located on the Indian Ocean in the Sistan and Baluchistan province of Iran, a gateway to opportunities for trade with central Asian nations.
 

Easily accessible from India's western coast, the Chabahar port is increasingly seen as a counter to Pakistan's Gwadar Port, which is being developed with Chinese investment.
 

Opposition’s take
 

Congress leader Rahul Gandhi on Wednesday took to Twitter to take pot shots at the government on the issue, saying “India’s global strategy is in tatters. We are losing power and respect everywhere and GoI has no idea what to do.”
 

The Congress called Iran's move a “big loss” for the country even as it questioned the diplomatic tactics of the Centre.
 

“India dropped from Chahbar Port deal. This is the diplomacy of the Modi government that won laurels even without getting the work done, China worked quietly but gave them a better deal. Big loss for India. But you can’t ask questions!” senior Congress leader Abhishek Manu Singhvi tweeted citing The Hindu report report.