What's new

Featured After rail, India set to lose Iran gas project

There are so many comments on my post that I have decided to reply to all the honorable members’ queries in one go.

Chahbahar, like Gwadar, is a very old port. Since this is the only port of Iran outside of the Hormuz Straits, the Shah of Iran started its development in 1970 and established a naval & Airbase. After the revolution, nearly all of the Shah’s projects were put on the back burner also the foreign companies’ interest in the financing of these projects ran away.

It was primarily because of Pakistan’s continued denial of the Afghan transit trade via the Wagah route that induced India to approach Iran to exploit the alternate route.

President Khatami of Iran was invited as the Chief Guest on the Indian Republic Day, 26Th January 2003. India – Iran agreement to jointly develop the Chahbahar port was signed on the same occasion. The project was put on the shelf because USA sanctions on Iran came into force soon after.

In my view, two things gave a push to this project. First was the Pakistan- Afghan transit trade agreement of 2010 which allowed the Afghan goods to be exported to India. However, the goods needed to be offloaded at Torkham and then carried to the border on Pakistani trucks offloaded again at Wagah and reloaded to the Indian trucks. Something that irked Afghanistan as well as India.

The second was the 2013 agreement between Pakistan & China for the Economic Corridor via Gwadar. This was a major coup for China and of great concern to India as well as the USA. IMO, it was at the prompting by the USA that India finally decided to pursue the alternate route project and in 2014 sanctioned an initial $85-milion was the development of Chahbahar port.

By 2016 sanctions against Iran were being lifted and Indian investment was increased to $500-million. An additional sum of $1.6-billion was earmarked for the 650 Km rail –link from Chahbahar to Zahedan. Since work on the Zaranj- Dilaram Road was already in progress as part of the Indian $750-million investment package to Afghanistan; when completed, it would provide Afghanistan & the Central Asian countries another trade route to Africa & the Far East.

While Donald Trump had re-imposed sanctions on Iran, the Chahbahar project was given an exemption from the Iran sanctions indicate the extent Trump is willing to go to outmaneuver China! However, it is because of the ‘Re-imposed’ sanctions that forced Iran’s regime to turn to the Chinese for help and we know what followed.

It is clear that even though initially Indians were interested in Chahbahar to side-line Pakistan, Donald Trump coming to power in the USA and the Chinese Belt & Road Initiative are the main factors that would make or break the Indian designs.

There are many things that Pakistan can do to pacify or at least cool to some extent the hostility from our eastern neighbors, provided there is a political will to do it. For example:

- Allow Indian civil aircrafts a restricted route through Pakistani air space.

- Stop the ‘tit for tat’ reactions to the Indian minister’s / military commander’s statements and only respond to the official statements.

- Allow Afghanistan & the Central Asian states transit trade with India and also allow Indian goods transit to Afghanistan & Central Asian albeit with a reasonable transit fee.

- Increase people to people contacts.

- Allow India – Pakistan trade as long as it remains in balance.

In my humble opinion, none of this likely to damage Pakistan’s interest in any way. On the contrary, it would help to melt the ‘Ice’ albeit slowly.

Admittedly, you need a strong political will & backing of the establishment before any of the steps mentioned above can be taken. But then would any rational cool-headed person prefer that current India/Pakistan tensions continue ad infintim?

Another big question however remains, would the chauvinists and religious bigots on both sides of the border also agree because they thrive on hatred?
 
.
There are so many comments on my post that I have decided to reply to all the honorable members’ queries in one go.

Chahbahar, like Gwadar, is a very old port. Since this is the only port of Iran outside of the Hormuz Straits, the Shah of Iran started its development in 1970 and established a naval & Airbase. After the revolution, nearly all of the Shah’s projects were put on the back burner also the foreign companies’ interest in the financing of these projects ran away.

It was primarily because of Pakistan’s continued denial of the Afghan transit trade via the Wagah route that induced India to approach Iran to exploit the alternate route.

President Khatami of Iran was invited as the Chief Guest on the Indian Republic Day, 26Th January 2003. India – Iran agreement to jointly develop the Chahbahar port was signed on the same occasion. The project was put on the shelf because USA sanctions on Iran came into force soon after.

In my view, two things gave a push to this project. First was the Pakistan- Afghan transit trade agreement of 2010 which allowed the Afghan goods to be exported to India. However, the goods needed to be offloaded at Torkham and then carried to the border on Pakistani trucks offloaded again at Wagah and reloaded to the Indian trucks. Something that irked Afghanistan as well as India.

The second was the 2013 agreement between Pakistan & China for the Economic Corridor via Gwadar. This was a major coup for China and of great concern to India as well as the USA. IMO, it was at the prompting by the USA that India finally decided to pursue the alternate route project and in 2014 sanctioned an initial $85-milion was the development of Chahbahar port.

By 2016 sanctions against Iran were being lifted and Indian investment was increased to $500-million. An additional sum of $1.6-billion was earmarked for the 650 Km rail –link from Chahbahar to Zahedan. Since work on the Zaranj- Dilaram Road was already in progress as part of the Indian $750-million investment package to Afghanistan; when completed, it would provide Afghanistan & the Central Asian countries another trade route to Africa & the Far East.

While Donald Trump had re-imposed sanctions on Iran, the Chahbahar project was given an exemption from the Iran sanctions indicate the extent Trump is willing to go to outmaneuver China! However, it is because of the ‘Re-imposed’ sanctions that forced Iran’s regime to turn to the Chinese for help and we know what followed.

It is clear that even though initially Indians were interested in Chahbahar to side-line Pakistan, Donald Trump coming to power in the USA and the Chinese Belt & Road Initiative are the main factors that would make or break the Indian designs.

There are many things that Pakistan can do to pacify or at least cool to some extent the hostility from our eastern neighbors, provided there is a political will to do it. For example:

- Allow Indian civil aircrafts a restricted route through Pakistani air space.

- Stop the ‘tit for tat’ reactions to the Indian minister’s / military commander’s statements and only respond to the official statements.

- Allow Afghanistan & the Central Asian states transit trade with India and also allow Indian goods transit to Afghanistan & Central Asian albeit with a reasonable transit fee.

- Increase people to people contacts.

- Allow India – Pakistan trade as long as it remains in balance.

In my humble opinion, none of this likely to damage Pakistan’s interest in any way. On the contrary, it would help to melt the ‘Ice’ albeit slowly.

Admittedly, you need a strong political will & backing of the establishment before any of the steps mentioned above can be taken. But then would any rational cool-headed person prefer that current India/Pakistan tensions continue ad infintim?

Another big question however remains, would the chauvinists and religious bigots on both sides of the border also agree because they thrive on hatred?

Why Pakistan should do more. It has to be Modi regime who needs to push for the peace. IK wanted to have cordial relationship with India but he was responded back with Feb26 drama and from that point, Modi regime intentions were pretty clear.

P.S. India always had to backed out once US showed desired for an Afghanistan pull back. They know, we know, Iran now knows their only desire to use Chabahar port was to make their presence more prominent in Afghanistan and support BLA militants. Once US started talking to Talibans, it was game over for India in Afghanistan and it didn't took long for India to abandoned Chabahar port as well.
 
.
All these are new developments due to the changing political landscape of the region. None of these are due to any diplomatic efforts on the part of Pakistan.

In my humble opinion, all events /developments/paradigm changes that are beyond the control of the affected parties should not be the cause of celebration or of commiseration. Primarily because the circumstances could change again and celebrations could turn out to be premature.

On a personal basis, I abhor the butcher Modi, but also realize that he the leader of the BJP, the party currently ruling one of the largest military & economic powers in our neighborhood. We, therefore, need to continue our efforts to somehow find a way of peaceful co-existence with his government.
Agree that celebrations in geopolitics are depict naivety. India may be out of rail and gas projects but that does mean it cant use chabahar for trade. But if events go as they seem, India wont be able to use iran soil against Pakistan and Tehran as it ally against Islamabad.

Peaceful coexistence with India not possible - today, in the near future, and distant future, the country firmly under Hindutva as a result of a over a century rss/golkar/hindutva movement.
 
.
After being "dropped" from a key rail project in southeastern Iran along the border with Afghanistan, India is also set to lose an ambitious gas field project in the country that had been in the pipeline for past 10 years.

India's Ministry of External Affairs in a statement on Thursday said Tehran would develop the Farzad-B gas field in the Persian Gulf region "on its own" and might engage India "appropriately at a later stage".

Last week, Masoud Karbasian, managing director of National Iranian Oil Company (NIOC), told reporters that a new operator had been roped in to develop the gas field, replacing India's ONGC.

The field, estimated to possess 21.7 trillion cubic feet of natural gas reserves, 12.8 trillion cubic feet of natural gas and 212 million barrels of gas condensates, was discovered in 2008 by a consortium of three Indian companies — ONGC, Oil India Limited and Indian Oil Corporation.

According to the deal, the Indian side was supposed to develop the field but they abruptly stopped work in 2012, following the intensification of sanctions against Iran.

After sanctions were eased in 2015 following the signing of a nuclear deal between Iran and Western countries, India showed its willingness to return to the project.

However, things again fell apart amid the reinstatement of US sanctions on Iran in May 2018, which further "discouraged" India from making headway in the project, said sources familiar with the issue who requested not to be named.

"By May 2018, the two sides had made tremendous progress and agreed on key details of the project," the sources said. "However, the US sanctions played the spoilsport."

The two sides had disagreements among themselves as well, particularly on the number of pipelines to be laid and financial investment in the development plan, according to reports.

In May 2019, Iran's oil minister, Bijan Namdar Zanganeh, said his ministry had devised a plan to finance the development of the Farzad-B gas field.

The NIOC had asked the Indian side to submit a financial plan for the field's development. However, Tehran was "not impressed" with the plan and asked for a new one, said the sources. India had reportedly made a $5.5 billion investment plan

In August 2019, after slow progress by the Indian side to submit a new plan, Karbasian said Iran would proceed with another operator for the project.

India's External Affairs Ministry, however, said the "follow-up bilateral cooperation" was impacted by "policy changes on the Iranian side".

Double blow
India's loss of the project marks a "big setback" for relations between the two countries, Tehran-based analysts, who asked to remain anonymous, told Anadolu Agency, as the Farzad-B gas field and Chabahar port were the two largest bilateral accomplishments between the two sides.

Earlier reports claimed that Iran had "dropped" India from a rail project after the Indian side showed reluctance to start work due to US sanctions.

Read: Iran drops India from key Chabahar project

The memorandum of understanding to construct the 628-kilometre railway line from the port city of Chabahar to Zahedan was first discussed between the two sides in May 2016.

It came on the sidelines of the signing of a trilateral agreement between India, Iran and Afghanistan to develop a transport and trade corridor from India to Afghanistan through the Chabahar port in southeast Iran. The port has been operational since 2016 and has been exempted from US sanctions.

India's External Affairs Ministry dismissed the reports that Iran excluded it from the rail project as "speculative," saying Tehran was to "nominate an authorised entity to finalise outstanding technical and financial issues". The matter, it said, was "still awaited".

"IRCON was appointed by Government of India to assess the feasibility of the project. It was working with CDTIC, an Iranian company under their Ministry of Railways in that regard. IRCON has completed the site inspection and review of the feasibility report," the ministry said in a statement on Thursday, referring to the state-run Indian infrastructure firm undertaking the project.

"Detailed discussions were thereafter held on other relevant aspects of the project, which had to take into account the financial challenges that Iran was facing. In December 2019, these issues were reviewed in detail at the 19th India-Iran Joint Commission Meeting in Tehran."

Read: US sanctions, coronavirus make for Iran's toughest year, says Rouhani

An official from Iran's Ports and Maritime Organisation has also denied the reports. However, he said Iran "has not inked any deal with India" for the construction of the Chabahar-Zahedan railroad.

"Iran has only signed two agreements with Indians for investment in Chabahar: One is related to the port's machinery and equipment, and the second is related to India's investment to the tune of $150m," Farhad Montaser told state news agency IRNA on Wednesday.

According to the 2016 MoU between India's IRCON and Iran’s CDTIC, IRCON was to "provide requisite services for the construction of Chabahar-Zahedan railway line which forms part of transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan".

Services to be provided by IRCON, as part of the MoU, included all "superstructure work and financing the project", estimated to be around $1.6 billion.

However, the two sides failed to reach an agreement, sources said. Last week, Iran went ahead with a track-laying ceremony for the rail line, which will eventually stretch to Zaranj on the Afghan side.
https://www.dawn.com/news/1569742/after-rail-india-set-to-lose-iran-gas-project
It looks like the Indian nightmare of being encircled by the Chinese both at sea and at land is becoming reality ... Indian foreign policy under Modi has been a complete disaster.
 
.
Iran is coming to its senses and punishing India for it's dastardly treachery and backstabbing. India deserves it, maybe Indians will ditch Modi for the harm he is causing to the India people.
Please tell honestly - Why so much hatred for Modi?

Is it because he is the first indian PM who is pro-active?, and not necessarily reactive. Please be honest.

Anyway, the current thinking in Indian circles is to finish off the rest of the Pakistan. Certain class of people on our side have no hope and see this as inevitable, so why not just simply give in !

The threat to Pak (or any country) is internal. Pak has a strong defence forces. Please get out of insecurity that india will do something.

India is not interested in pak. However, pak is not getting any more kashmir.
 
.
BD has executed what you mentioned x 100K!!!! And, now BD is by the Hindus, of the Hindus and for the Hindus!!! And, the capitulation to India is absolute on a permanent basis.....

d6KFxqY.gif


@DalalErMaNodi
 
.
There are so many comments on my post that I have decided to reply to all the honorable members’ queries in one go.

Chahbahar, like Gwadar, is a very old port. Since this is the only port of Iran outside of the Hormuz Straits, the Shah of Iran started its development in 1970 and established a naval & Airbase. After the revolution, nearly all of the Shah’s projects were put on the back burner also the foreign companies’ interest in the financing of these projects ran away.

It was primarily because of Pakistan’s continued denial of the Afghan transit trade via the Wagah route that induced India to approach Iran to exploit the alternate route.

President Khatami of Iran was invited as the Chief Guest on the Indian Republic Day, 26Th January 2003. India – Iran agreement to jointly develop the Chahbahar port was signed on the same occasion. The project was put on the shelf because USA sanctions on Iran came into force soon after.

In my view, two things gave a push to this project. First was the Pakistan- Afghan transit trade agreement of 2010 which allowed the Afghan goods to be exported to India. However, the goods needed to be offloaded at Torkham and then carried to the border on Pakistani trucks offloaded again at Wagah and reloaded to the Indian trucks. Something that irked Afghanistan as well as India.

The second was the 2013 agreement between Pakistan & China for the Economic Corridor via Gwadar. This was a major coup for China and of great concern to India as well as the USA. IMO, it was at the prompting by the USA that India finally decided to pursue the alternate route project and in 2014 sanctioned an initial $85-milion was the development of Chahbahar port.

By 2016 sanctions against Iran were being lifted and Indian investment was increased to $500-million. An additional sum of $1.6-billion was earmarked for the 650 Km rail –link from Chahbahar to Zahedan. Since work on the Zaranj- Dilaram Road was already in progress as part of the Indian $750-million investment package to Afghanistan; when completed, it would provide Afghanistan & the Central Asian countries another trade route to Africa & the Far East.

While Donald Trump had re-imposed sanctions on Iran, the Chahbahar project was given an exemption from the Iran sanctions indicate the extent Trump is willing to go to outmaneuver China! However, it is because of the ‘Re-imposed’ sanctions that forced Iran’s regime to turn to the Chinese for help and we know what followed.

It is clear that even though initially Indians were interested in Chahbahar to side-line Pakistan, Donald Trump coming to power in the USA and the Chinese Belt & Road Initiative are the main factors that would make or break the Indian designs.

There are many things that Pakistan can do to pacify or at least cool to some extent the hostility from our eastern neighbors, provided there is a political will to do it. For example:

- Allow Indian civil aircrafts a restricted route through Pakistani air space.

- Stop the ‘tit for tat’ reactions to the Indian minister’s / military commander’s statements and only respond to the official statements.

- Allow Afghanistan & the Central Asian states transit trade with India and also allow Indian goods transit to Afghanistan & Central Asian albeit with a reasonable transit fee.

- Increase people to people contacts.

- Allow India – Pakistan trade as long as it remains in balance.

In my humble opinion, none of this likely to damage Pakistan’s interest in any way. On the contrary, it would help to melt the ‘Ice’ albeit slowly.

Admittedly, you need a strong political will & backing of the establishment before any of the steps mentioned above can be taken. But then would any rational cool-headed person prefer that current India/Pakistan tensions continue ad infintim?

Another big question however remains, would the chauvinists and religious bigots on both sides of the border also agree because they thrive on hatred?

There is nothing in Central Asia or Afghanistan that will change the economic fortunes of India or Pakistan overnight. They are tiny market (~ 100 million people) with limited amount of fossil fuels

If sanctions on Iran are lifted one of these days it is easy to build road and railway links through Iran to Central Asia
 
. .
The ONLY way that can happen is if Pakistan becomes so militarily powerful that india will not DARE mess with us. We can't reason with india as far as Pakistan and Pakistanis are concerned.
Miltarily we r powerful enough. Its economy and diplomacy where we r loosing.
 
.
from #56InchBoobies to #SurrenderModi to now #LoserModi

wah mOdi g wah!! genius!
 
.
There is nothing in Central Asia or Afghanistan that will change the economic fortunes of India or Pakistan overnight. They are tiny market (~ 100 million people) with limited amount of fossil fuels

If sanctions on Iran are lifted one of these days it is easy to build road and railway links through Iran to Central Asia
There is nothing anywhere else either that will change economic fortunes of India and Pakistan overnight. Both countries have large populations that need to be uplifted out of poverty...both countries face vast challenges and will need to continuously grow economically for decades. There's no bunny hopping our way to that prosperous destination...but interconnecting the region, improving trade ties, increasing trade volume, and more integration of the region would definitely help in a slow turtle crawl towards it. I say take any and all opportunities available...no matter how small.
 
.
Agree that celebrations in geopolitics are depict naivety. India may be out of rail and gas projects but that does mean it cant use chabahar for trade. But if events go as they seem, India wont be able to use iran soil against Pakistan and Tehran as it ally against Islamabad.

Peaceful coexistence with India not possible - today, in the near future, and distant future, the country firmly under Hindutva as a result of a over a century rss/golkar/hindutva movement.
India and iran are both very old and great civilizations , they have very old diplomatic relations ranging to thousands of years , it will continue for more than thousands of years .
 
.
India and iran are both very old and great civilizations , they have very old diplomatic relations ranging to thousands of years , it will continue for more than thousands of years .
....I mean how much backwards you will go while civilizations are moving forward.
But your govt will play the civilizational card when it suits it, right?!
For last 1000 year give or take only link India or better say this subcontinent has was the Islamic link. Mughals came from central asia, Delhi sultanate has its origin in Afghanistan. Official language of India has been persian because of mughals and Delhi sultanate and you are boasting civilizational link of thousands of years. Even urdu, which evolved in India from Arabic, persians, turki and hindi is not much to be seen in india because it is "Islamic" in nature in india. Hindi is being forced upon Kashimiris now.
No my friend, you have no civilizational links with Iran or Afghanistan - it is Hindutva vs muslim civilization.
Any link you had or will have with iran will be based upon self interests. That's how relations works in modern times.
Read some right history not the adulterated one taught in indian schools.
 
.
....I mean how much backwards you will go while civilizations are moving forward.
But your govt will play the civilizational card when it suits it, right?!
For last 1000 year give or take only link India or better say this subcontinent has was the Islamic link. Mughals came from central asia, Delhi sultanate has its origin in Afghanistan. Official language of India has been persian because of mughals and Delhi sultanate and you are boasting civilizational link of thousands of years. Even urdu, which evolved in India from Arabic, persians, turki and hindi is not much to be seen in india because it is "Islamic" in nature in india. Hindi is being forced upon Kashimiris now.
No my friend, you have no civilizational links with Iran or Afghanistan - it is Hindutva vs muslim civilization.
Any link you had or will have with iran will be based upon self interests. That's how relations works in modern times.
Read some right history not the adulterated one taught in indian schools.
We are a secular nation , islam is part of our society , we dont think on religious lines .
 
.
We are a secular nation , islam is part of our society , we dont think on religious lines .
Yes, that's right
......
You may be secular...
But your India is under firm grip of Hindutva
Just listen to a conversation between that guy from Print forgetting his name, and Francis Fukuyama. He said few things explicitly some implicitly .
Cheers and peace.
 
.

Pakistan Affairs Latest Posts

Back
Top Bottom