CHABAHAR PORT
Flashback / Why Iran allowed Indian
Investment in Chabahar Port?
v
In
the early 2012, US put sanction against Iran Oil export, i.e. if any country
imports crude oil from Iran, then that country’s bank (through which payments
are made to Iran) will not be allowed to do transactions in USA.
v
Because
of this sanction, most of the nations stopped importing oil from Iran, except
some big ones like India and China, but India too felt the heat of US
diplomatic pressure and agreed to cut down oil imports from Iran.
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Majority
of Iran’s nation income comes from Oil export, so, they’re also feeling the
heat. They want money, so, Iranian Government has now allowed India do invest
upto $100 million in the Chabahar Port Development project.
India’s Problem:-
Well, now Indian Government fears that doing
any investment in Iran= USA will be annoyed. So, India wants two things
ü
Afghanistan
must make a commitment that it will do trading through this Iranian port.
(otherwise the whole project will be economically unviable). Because there is a
good chance, Afghanistan may not do any trading at all, with pressure from US
and Pakistan.
ü
Afghanistan
should sign a triparitate MoU with Iran and India, make it look like
Afghanistan badly wants this project for the Development of its own economy and
we (Indians) are just helping in rebuilding the Afghanistan.
ü
But
Afghanistan has changed the tone now, they’re not saying anything about the
project (may be under secret US pressure.) They’re not keen on signing any such
agreement or MoU or statement.
In short, India’s problem
is how to calibrate the political signal it sends out at a time when the West
is focused on making economic sanctions work effectively against Iran,
especially when Afghanistan too has been reluctant given the issues involved.
Chabhar Port:
·
Chabahar
is a port located in south-east Iran that enables India to bypass Pakistan
·
Its
location lies in the Gulf of Oman. It is the only Iranian port with direct
access to the ocean.
·
The
port was partially built by India in the 1990s to provide access to Afghanistan
and Central Asia, bypassing Pakistan.
·
Create
a route to land-locked Afghanistan from Chabahar where road network available
to Zaranj in Afghanistan
·
The
Zaranj-Delaram road constructed by India in 2009 can give access to
Afghanistan’s Garland Highway, setting up road access to four major cities in
Afghanistan — Herat, Kandahar, Kabul and Mazar-e-Sharif
·
India
is doubling oil imports from Iran as well as develop a gas field
·
The
Indian-component of the port is also part of the Ashgabat agreement, signed by
India, Oman, Iran, Turkmenistan, Uzbekistan and Kazakhstan, for creating an
international transport and transit corridor facilitating transportation of
goods between Central Asia and the Persian Gulf.
·
In
May 2016, India signed an agreement to develop two berths at Chabahar port at a
cost of $85 million, over the course of 18 months.
·
India
is to make available a $500 million line of credit extended by the Exim Bank of
India for the first phase of construction at the port.
·
India
has also offered to supply $400 million worth of steel towards the construction
of a rail link between Chahbahar and Zahedan, as part of North–South Transport
Corridor. Were Iran to take full advantage of the $500 million credit line, and
the offer of $400 million worth of steel as per the May 2016 agreements, Indian
contributions towards Iranian infrastructure development would be valued at
approximately $985 million.
Delaram-Zaranj
Highway
§
Delaram–Zaranj
Highway, also known as Route 606.
§
Length
about 200km
§
It
connects Delaram (border city of Afghanistan) to Zaranj (Capital of Nimruz
province of Afghanistan).
§
India
totally financed this project (about 600 crore rupees).
§
Border
Roads Organization (BRO) of India, has constructed this highway.
§
Construction
started in 2005, and in 2009 the road was opened for public use.
§
During
the construction of this highway,Taliban killed about 130 workers, including 4
Indians from BRO.
§
So
far, all the roadway construction is finished.
§
India
wished to access both Afghanistan and other central Asian nations (like
Turkmenistan), through this Chabahar port, But the Chabahar port is not yet
fully developed to handle the huge cargo to and from India.
§
All
these years, India was requesting Iran to allow them to do some port
Development on this port. Finally agreed for Chabhar Port.
Why India need to
invest in Route 606?
·
Afghanistan
is a land-locked country. Most of its international trade is done through
Pakistani sea-ports.
·
Therefore,
India wished to connect to Afghanistan via an alternative route (through Iran).
·
So,
in 2003 a trilateral agreement was signed among India, Iran and Afghanistan.
·
Under
this agreement
Ø Iran was to build a
highway from Chabahar (a Port City of Iran) upto Afghanistan border.
Ø India was to build a
road connecting Delaram (border city of Afghanistan) to Zaranj (Capital of
Nimruz province of Afghanistan)
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