Editorial Analysis - 16th July 2020

By Paras Chitkara|Updated : July 16th, 2020

Editorial Analysis - 16th July

Act quickly : on Chabahar Project

Context 

Iran has decided to drop India from a plan to build a rail link from the strategic Chabahar port to Zahedan on the Afghan border.

Background

  • The railway project was being discussed between the Iranian Railways and the state-owned Indian Railways Construction Ltd (IRCON) 
  • It was meant to be part of India’s commitment to the trilateral agreement between India, Iran and Afghanistan to build an alternate trade route to Afghanistan and Central Asia.
  • In May 2016, Prime Minister Narendra Modi  visited Tehran to sign the Chabahar agreement with Iranian President Rouhani and Afghanistan President Ghani.
  • At that time ,IRCON signed an MoU with the Iranian Rail Ministry to construct the Chabahar-Zahedan railway which will be extended to Zaranj across the border in Afghanistan.
  • It was a “part of the transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan”. 
  • IRCON had promised to provide all services, superstructure work and financing for the project (around $1.6 billion).
  • India’s Border Roads Organisation also helped build the 218 km Route 606 in Afghanistan, known otherwise as the Delaram-Zaranj highway, that cut road travel time between Afghanistan and Iran.

byjusexamprep

Source : The Financial Express

Issues

  • India delayed funding and building the rail link from Chabahar to Zahedan. 
  • The delays were initially due to contract disagreements.
  • India was also concerned that these works could attract U.S. sanctions. 
  • The U.S. had provided a sanctions waiver for the Chabahar port ,however some ambiguity remained over the rail line to Zahedan.
  • It has been difficult to find equipment suppliers and partners due to worries they could be targeted by the U.S.
  • Meanwhile, complicating matters further, Iran and China are close to finalising a 25-year, $400 billion Strategic Partnership which could include Chinese involvement in Chabahar’s duty free zone, an oil refinery nearby, and possibly a larger role in Chabahar port as well.
  • Iran proposed a tie-up between the Chinese-run Pakistani port at Gwadar and Chabahar last year.
  • It also offered interests to China in the Bandar-e-Jask port 350km away from Chabahar.

 

Significance of Chabahar Port

  • It allows India to bypass Pakistan and establish trade links with Afghanistan and beyond to Central Asia. E.g From Kandla in Gujarat, wheat and other foodgrain is being sent to Afghanistan via Chabahar. 
  • It is supposed to be India’s answer to Pakistan’s denial of the trading route through Wagah to Khyber pass into Afghanistan and beyond.
  • Chabahar is important for India’s regional goals, and for its relations with Iran and Afghanistan.
  • It is also strategically important ,considering China’s presence in nearby Gwadar Port in Pakistan. 
  • Chabahar port, together with its under-construction railway line to Zahedan are part of the International North-South Transit Corridor.
  • INSTC will significantly cut short the traditional trade routes between India and the European and CIS countries’ markets.


The Delays and setbacks

  • Chabahar will not be the first time delays in the completion of ambitious infrastructure projects undertaken by India in the region have inflicted setbacks on India’s strategic goals.
  • From Nepal to Myanmar, Sri Lanka and Iran, Delhi has made commitments on building power projects, highways, railways, and other infrastructure.Each proceeds slowly or not at all.
  • The Pancheshwar Dam project in Nepal, for instance, has been hanging fire since 1991.
  • A still to be completed trilateral highway between India, Myanmar and Thailand has been overshadowed by a Chinese-built highway that has boosted China-Myanmar border trade. 
  • India’s better record in Sri Lanka is not without missed opportunities that were once again snapped up by China.

Road Ahead

  • India has no choice but to find a more efficient way of getting around these difficulties.
  • There is a need to expedite ongoing projects and regional agreements
  • Delhi has indicated that it continues to be part of the rail link project in Iran.
  • If so, now is the time to get on with it, even if Iran’s much touted 25-year strategic partnership agreement with Beijing is not as imminent as Tehran makes it seem. 
  • The Chabahar project is important for India’s regional goals, and for its relations with Iran. That is reason enough to act quickly.

Source:

https://indianexpress.com/article/opinion/editorials/chabahar-port-act-quickly-6507681/

https://www.thehindu.com/news/national/iran-drops-india-from-chabahar-rail-project-cites-funding-delay/article32072428.ece

https://indianexpress.com/article/india/as-iran-starts-chabahar-zahedan-railway-project-india-hints-may-join-later-6506192/

 

MCQs based on Editorial Analysis

 

Q.1 What is the importance of developing Chabahar Port by India? (PYQ 2017)

  1. India’s trade with African countries will enormously increase.
  2. India’s relations with oil-producing Arab countries will be strengthened.
  3. India will not depend on Pakistan for access to Afghanistan and Central Asia.
  4. Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.

 

Q.2 Consider the following statements : 

  1. Chabahar Port opens up in Persian Gulf
  2. Strait of hormuz separates Persian gulf and Red Sea

Which of the statements given above is/are correct:

  1. 1 Only
  2. 2 Only
  3. Both 1 and 2
  4. Neither 1 nor 2

Mention your answers in the Comment section !

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