TEHRAN (Dispatches) - Iran’s Minister of Road and Urban Development Abbas Akhoundi has said that Tehran and New Delhi agreed to sign memoranda of understanding (MoUs) worth 2 billion dollars to develop railway transportation and Chabahar Port project.
"Three important issues were discussed at the meeting with the Indian authorities, one of which was the development of the Chabahar to Zahedan railway worth one billion dollars,” Akhoundi said.
He noted that the officials of the Indian company which is involved in this project visited Iran last week to make the necessary inspections and returned to New Delhi with proposals about the development of the railroad link.
Akhoundi said that the second issue discussed in the meeting with Indian officials focused on production of 200 locomotives for freight trains. "It was an important deal between India and Iran. India is ready to fund the project.”
First phase of Chabahar port development project is of prime importance for both countries. India sees Iran’s Chabahar Port project as a golden opportunity for New Delhi to enhance its regional role and cooperation.
India has reiterated its commitment to complete the port that would contribute to bilateral and regional trade and economic development and also provide alternate access to landlocked Afghanistan to regional and global markets.
India managed to transit its first tranche of 110,000 tons of wheat from India to Afghanistan through the Chabahar Port based on a Trilateral Transit and Trade Agreement signed in May 2016 between India, Iran and Afghanistan.
Iranian President Hassan Rouhani opened the first phase of Shahid Beheshti Port in the Southeastern city of Chabahar on December 3, 2017 during a ceremony attended by 60 foreign guests from 17 countries.
As Iran’s only oceans port and thanks to its very sensitive geopolitical position, Chabahar plays a vital role in connecting India to Afghanistan, Central Asia and Europe.
India has committed $500 million to building two berths at Chabahar to process trade and develop an economic zone around them, as well as $1.6 billion for a 650-km rail link from Chabahar to Zahedan and into Afghanistan. Iran is completing the current construction at Chabahar at a cost of $340 million.