Skip to main content

India's stake in Iran's Chabahar Port

Chabahar port is located in Iran near strait of hormuz. In 2016, India signed deal with Iran of $8 billion investment in Chabahar and industries in Chabahar Special Economic Zone.
Chabahar port project

India Iran relations 

India Iran trade relations were better in past. Iran was leading exporter of crude oil after Saudi Arabia and Iraq to India. Iran used to provide crude oil at lower prices to India. This helped India for its energy security. India has it's great strategic importance in developing Iran's Chabahar port. India-Iran relations were good in past before US sanctions on Iran.

US Sanctions on Iran:

On 8 may, 2018 US president Donald Trump decided to move out of "Iran nuclear deal or JCPOA (Joint comprehensive plan of Action)". This deal was signed by P5+1+EU (permanent 5 members of UNSC +1 i.e, Germany + European Union) with Iran. This deal was signed to control Iran from developing nuclear weapons and Uranium was provided to Iran only for nuclear energy programs. This deal was signed during Barak Obama's presidency. But Donald Trump didn't like this deal, so USA moved away from this deal. This deal was not bilateral deal as this was signed by P5+1+EU with Iran. But economic sanctions were imposed on Iran by USA. USA Iran relations got worsened after this and tensions began between two countries. If any country refuse to follow US sanctions on Iran and made its economic relations with Iran then that country would also come under US sanctions under CAATSA Act (Countering American Adversaries Through Sanctions Act). 

Strategic importance of Chabahar port for India

Chanahar to Zahedan rail project

Chabahar port is located at a strategic important location, near a choke point for strait of hormuz. India has its stake in Chabahar port. This is to be developed by India's state owned IRCON in association with Iranian Railways. Near Chabahar there is Gwadar port of Pakistan located in Balochistan province which is part of China's CPEC. India wants to establish connectivity with Afghanistan and Central Asian countries through Chabahar Port. So, access to Chabahar port is very critical for India. India enjoys close political and strategic relations with Afghanistan and Central Asian countries. Even India shares land border with Afghanistan but that area is controlled by Pakistan through Pakistan Occupied Kashmir (POK). Connection to Afghanistan can either be made through Pakistan but this option is not feasible for India. Even if it is made through Pakistan, it would be highly vulnerable due to political instability and extremism. As India and Pakistan have constant political tensions.
        In order to make connectivity with Afghanistan India is developing Chabahar port and rail connectivity to Afghanistan. There would be rail network from Chabahar to Zehdan, a border town near Afghanistan. Zehdan could be connected to Zaranj, a town in Afghanistan through rail and road network. And this could be extended to other Central Asian countries.
            But after the US sanctions on Iran this Chabahar port project was affected. No company was selling essential components needed for the construction of this project as this come under US sanctions. India enjoys good relations with USA, so USA exempted Chabahar project from sanctions for India. But this cause a delay in project.
           Recently a news came that India has been dropped by Iran from Chabahar rail project as Iran has started construction themselves. This issue is now solved, as Indian embassy in Iran has clarified the situation and said India is committed to Chabahar Project. Indian embassy clarified that initially construction work has started by Iran but that is basic work and major work would still be constructed by India. Iran's government senior officials also clarified that now they themselves are funding the project but the doors are always open for India, it is open to IRCON. India may be waiting for changing geopolitics after US elections. China has already decided to invest 400 billion us dollars in Iran. So, India's stake in Chabahar port is very important.

India should not delay the projects this much that the other countries would believe that India is not better option for projects. India should focus to complete its projects on time. India should try to balance its diplomatic ties with USA and Iran.

Comments

Popular posts from this blog

Militarization of Indian Ocean

Recent development: Islamic Revolutionary Gaurd corps( IRGC), which is a elite group of Iranian army, plans to set up a permanent base in Indian Ocean region. Indian ocean is third largest ocean in the world and due to its strategic and economic importance various countries try to control it. There are various exit and entry points in Indian ocean like strait of Mallaca, strait of Hormuz and Bab al Mandeb,so by choking these points anyone can control trade through Indian Ocean. So due to these reasons various countries had started the militrasition of Indian Ocean like USA and France since mid of twentieth century. Major military bases in Indian Ocean: Diego Garcia: this is a military base of USA since 1970. USA had taken this on lease from UK.   Reunion island : this is overseas territory of France so france use it as a military base. Djibouti: since 2017 djibouti is acting as military base for chinese PLA. By the way Djibouti is a military base for many other countrie

Cold War 2.0

The Cold War was an era during which there were geopolitical tensions between USA and USSR, where both the countries tried to prove themselves better and compete with each other in various aspects. Now, a new type of Cold War has began between USA and China. Now it's a period of 4th Industrial revolution, it's Industrial revolution of technology. Cold War is not direct war between nations. Previous Cold War Earlier, the Cold War was between USA and USSR. There was distrust between these two nations. There was not actual War between these nations as both the countries are nuclear-powered, it makes deterrence to actual War. But there were proxy wars between them. The main reasons for this Cold War were ideological differences and arms race. The Characteristics of Cold War were: Ideological differences: Capitalism vs Communism Political distrust between USA and USSR Arms race: High military spending  Espionage  Space Race: who will develop more in space explora

Israel's Annexation Plan

Israel's President Benjamin Netanyahu has announced Annexation plan for almost 30% of area of West Bank. As it was his election campaign to annex West Bank's area. Historical Background Before and during world wars Jews were prosecuted and discriminated in various parts of Europe. During World wars, Jews started migrating towards Palestine, considering it as their hometown. As Bristish promised in 1917 under Balfour declaration to give homeland to Jews in Palestine. Then Jews started buying land from Arabs and starts settling there, as Jewish settlements. British handover this Jews Palestine conflict to UN in 1947. UN Recommendations: UN decided to divide Palestine into two countries as: Israel and Palestine with their majority of population area into equal parts. Jerusalem remain disputed, and it come under International control. As its half population was muslim and another half were Jews. Arab-Israel war 1948-49: Egypt, Syria, Iraq, Trans Jordan attacked Israe