Iran has dropped India from Chabahar rail project which comprises rail line from Chabahar port to Zahedan, along the border with Afghanistan. The Iranian government cited delays from the Indian side in funding and starting the project, for its decision of dropping India from the project. Now, Iranian Railways will go ahead without India’s assistance and utilize around $400 million from the Iranian National Development Fund.
India and Iran signed an agreement for the construction of a rail line from Chabahar port to Zahedan in 2016. India was supposed to offer requisite services for the construction of Chabahar-Zahedan railway line as a part of transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan. As per agreement, Indian Railways Construction Ltd (IRCON) promised to provide all services, superstructure work and financing for the project.