Iran drops India from Chabahar rail project as it OKs major deal with China

Tehran has decided to construct the 628 km key Chabahar-Zahedan railway line on its own, citing funding delays from New Delhi. Four years ago, both countries had inked a pact to construct the rail line from Chanahar Port to Zahedan, along the border with Afghanistan.

Hyderabad: As Iran reportedly approved a draft with China on economic and political cooperation, it has also decided to drop India from the Chabahar railway project citing funding delays from New Delhi, media reports said.

Four years ago, Tehran and New Delhi had inked a pact to construct a rail line from Chanahar Port to Zahedan, along the border with Afghanistan. But Tehran has now decided to construct the railway line on its own, reports claimed.

The Islamic republic's Transport and Urban Minister Mohammad Eslami inaugurated the track-laying process for the 628 km Chabahar-Zahedan line last week, which will be extended to Zaranj across the border in Afghanistan.

The move came after Tehran's fresh deal with China that might grant a huge concession to the Asian giant, including significant discounts on oil and gas, and the ability to delay payments for up to two years, the Middle East Eye said.