NEW DELHI (Economic Times) - International North South Transportation Corridor (INSTC) connecting Mumbai with St Petersburg and beyond – which has been 17 years in the making – is set to be operational with the first consignment from India to Russia.
Although the formal operationa of INSTC is planned for mid-January, the corridor will start functioning fully in a few months thereafter, according to people aware of the matter. Hectic preparations are underway to firm up all elements of the corridor in all key stakeholder states, informed officials. A Russian railway operator is expected to play key role in INSTC.
India, Iran and Russia had in September 2000 signed the INSTC agreement to build a corridor to provide the shortest multi-model transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and St Petersburg. From St Petersburg, North Europe is within easy reach via the Russian Federation. The estimated capacity of the corridor is 20-30 million tonnes of goods per year.
Conceived well before China’s Belt and Road Initiative (BRI), INSTC will not only help cut down on costs and time taken for transfer of goods from India to Russia and Europe via Iran but also provide an alternative connectivity initiative to countries in the Eurasian region. It will be India’s second corridor after the Chabahar Port to access resource rich Central Asia and its market.
The of Chabahar Port (whose Phase 1 was inaugurated on Sunday) coupled with INSTC will be a game changer for India’s strategic and economic goals in the Eurasian region, where China has benefited from its geographical contiguity, experts told ET. These connectivity routes promise to open up a sea of opportunity for India, they said, and the country may even consider working jointly with Russia on economic projects in the Eurasian region.
INSTC could get linked to the Chabahar Port besides Iran’s Bandar Abbas port, said an official, who did not wish to be identified. India also hopes that INSTC will be connected with various other connectivity projects that the five Central Asian and other Eurasian countries have undertaken among themselves, the official said.
INSTC has been expanded to include 11 new members – Azerbaijan, Armenia, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkey, Ukraine, Belarus, Oman, Syria and Bulgaria (as observer).