India To Supply Iran with 150,000 Tons of Standard Rail Tracks for 15,000 km Rail Line worth $233mn

[Chanakya's_Chant]

India to finance Iran rail tracks exports​

Officials in Tehran announced on Saturday that India will finance exporting about 150,000 tons of standard rail tracks to Iran.​

Saeid Mohammadzadeh, the deputy director for technical and infrastructure affairs of Iran Railways (IRIR), told the local media that India has created a special mechanism to support exports of rail tracks to Iran through the “full finance” scheme.

Mohammadzadeh added that Iran will not pay anything for the imports of the tracks.

Last year, India signed a contract worth $233 million with Iran for exports of rail tracks by companies including Steel Authority of India (SAIL).

Based on the original contract, the Indian companies would provide Iran with enough standard rail tracks to set up a network project spanning over 15,000 kilometers.

It is still not clear if the finance mechanism that Mohammadzadeh has mentioned involves the deal with the SAIL-led group.

Officials in Tehran have already emphasized that Iran wants to spend up to $8 billion over the next six years to revamp and expand its railway network.

To the same effect, they have emphasized that the country will need about 3 million tons of steel rails to connect all major cities, industrial centers and also ports for faster evacuation of goods.

Analysts are already speculating that the Indian government may reimburse steel exports to Iran through Iran’s assets that have been frozen in New Delhi banks as the result of the US-led sanctions against the country.

Indian media had previously reported that Indian exporters are banking on the United Commercial Bank or the UCO Bank to settle rupee payments with Iran.

Reports last April said UCO Bank began handling payments for India-Iran trade in 2012, under which domestic oil refiners buy oil from Iran but make payments into an ‘Iran Account’ with UCO’s Mumbai branch. When Iranians import goods from India, the bank pays the Indian exporters out of this account.

Source:- PressTV-India to finance Iran rail tracks exports

 

[ayesha.a]

Win-win for both countries. Iran gets to subvert US sanctions and asset freezes, and India gets to export a lot of steel and finished goods. Renders American sanctions rather pointless.

 

[Echo_419]

India to finance Iran rail tracks exports

Officials in Tehran announced on Saturday that India will finance exporting about 150,000 tons of standard rail tracks to Iran.​

Saeid Mohammadzadeh, the deputy director for technical and infrastructure affairs of Iran Railways (IRIR), told the local media that India has created a special mechanism to support exports of rail tracks to Iran through the “full finance” scheme.

Mohammadzadeh added that Iran will not pay anything for the imports of the tracks.

Last year, India signed a contract worth $233 million with Iran for exports of rail tracks by companies including Steel Authority of India (SAIL).

Based on the original contract, the Indian companies would provide Iran with enough standard rail tracks to set up a network project spanning over 15,000 kilometers.

It is still not clear if the finance mechanism that Mohammadzadeh has mentioned involves the deal with the SAIL-led group.

Officials in Tehran have already emphasized that Iran wants to spend up to $8 billion over the next six years to revamp and expand its railway network.

To the same effect, they have emphasized that the country will need about 3 million tons of steel rails to connect all major cities, industrial centers and also ports for faster evacuation of goods.

Analysts are already speculating that the Indian government may reimburse steel exports to Iran through Iran’s assets that have been frozen in New Delhi banks as the result of the US-led sanctions against the country.

Indian media had previously reported that Indian exporters are banking on the United Commercial Bank or the UCO Bank to settle rupee payments with Iran.

Reports last April said UCO Bank began handling payments for India-Iran trade in 2012, under which domestic oil refiners buy oil from Iran but make payments into an ‘Iran Account’ with UCO’s Mumbai branch. When Iranians import goods from India, the bank pays the Indian exporters out of this account.

Source:- PressTV-India to finance Iran rail tracks exports

Great news
Long live pur friendship

 

[Mustang06]

Nice!

 

[TimeTraveller]

.......................................

 

[C130]

Win-win for both countries. Iran gets to subvert US sanctions and asset freezes, and India gets to export a lot of steel and finished goods. Renders American sanctions rather pointless.

not sure how importing steel for railroad tracks nullifies the sanctions.


i would guess importing billions dollars of goods in exchange for oil every year that bypasses the use of dollar and banks would be more effective.

 

[ayesha.a]

not sure how importing steel for railroad tracks nullifies the sanctions.

As the article states, a lot of Iran's money is bottled up in Indian banks, who cannot give it back to Iran due to US sanctions on banks transfers to Iran. So the Indian govt will take all that money, and export goods to Iran instead. In short, the asset freeze by US has been rendered pointless.

 

[mohsen]

Another achievement (Import) from tadbir government!
Guess I have to celebrate it too!

 

[ganesh177]

Hope these rails run from chahabar to border

 

[Sam.]

@2800 @Serpentine @haman10

Good news eh

 

[OTTOMAN]

Whatever happened to the mighty US sanctions, which apparently are no where to be seen beyond news

 

[C130]

As the article states, a lot of Iran's money is bottled up in Indian banks, who cannot give it back to Iran due to US sanctions on banks transfers to Iran. So the Indian govt will take all that money, and export goods to Iran instead. In short, the asset freeze by US has been rendered pointless.

well yeah that's what I was thinking.

but this still peanuts to what Iran should be getting with sanctions.

 

[[Bregs]]

This is great news to supply these rail tracks to Iran

 

[Guynextdoor2]

not sure how importing steel for railroad tracks nullifies the sanctions.


i would guess importing billions dollars of goods in exchange for oil every year that bypasses the use of dollar and banks would be more effective.

We are getting energy resources, I'm sure at 'preferential prices'.

 

[OTTOMAN]

We are getting energy resources, I'm sure at 'preferential prices'.

why preferential prices? How would you circumvent US sanctions?