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.
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
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.
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
Post a Comment