The Editorial 25 Nov, 2022 - Chabahar Port and Its Development : India & Iran Consultations

INTERNATIONAL RELATIONS
25 Nov, 2022

Theme : International Relations

Paper : GS - 2

TABLE OF CONTENT

  1. Context
  2. Chabahar Port
  3. Relevance of the Chabahar Port
  4. Three-Fold Objective of the India’s Strategy
  5. Why is it taking so Long ?
  6. Concerns for India due to delay in Projects

Context : India and Iran held Foreign Office level consultations to continue cooperation for development of the Shahid Beheshti terminal of the Chabahar Port.

Chabahar Port : 

  • The port is being developed as a transit route to Afghanistan and Central Asia.
  • In 2016, India signed a deal with Iran entailing $8 billion investment in Chabahar port and industries in Chabahar Special Economic Zone.
  • India has already built a 240-km road connecting Afghanistan with Iran.
  • All these were expected to bring cargo to Bandar Abbas port and Chabahar port, and free Kabul from its dependence on Pakistan to reach the outer world.
  • Completion of this project would give India access to Afghanistan and beyond to Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Europe via the 7,200-km-long multi-modal North-South Transport Corridor (INSTC).

Relevance of the Chabahar Port : 

  • Located on the Gulf of Oman and is the only oceanic port of the country.  With this, India can bypass Pakistan in transporting goods to Afghanistan.
  • It will also boost India’s access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.
  • It also helps India counter Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port. Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
  • From a diplomatic perspective, Chabahar port could be used as a point from where humanitarian operations could be coordinated.

Three-Fold Objective of the India’s Strategy : 

  • To build India’s first offshore port and to project Indian infrastructure prowess in the Gulf
  • To circumvent trade through Pakistan, given the tense ties with India’s neighbor and build a long term, sustainable sea trade route and
  • To find an alternative land route to Afghanistan, which India had rebuilt ties with after the defeat of the Taliban in 2001

Why is it taking so Long ?

  • India’s quest for Chabahar has hit geopolitical road-block after road-block; the biggest issue has been over Iran’s relationship with western countries, especially the United States.
  • In years when western sanctions against Iran increased, the Chabahar project has been put on the back-burner.
  • However, the nuclear talks resulting in the Joint Comprehensive Plan of Action (JCPOA) in 2015 came into being, the Chabahar port has been easier to work on.
  • In 2018, the Trump administration put paid to India’s plans by walking out of the JCPOA and slapping new sanctions on dealing with Iran.
  • This led to the Modi government “zeroing out” all its oil imports from Iran, earlier a major supplier to India, causing a strain in ties.
  • India also snapped ties with Afghanistan after the Taliban takeover in August 2021, which put an end to the humanitarian aid of wheat and pulses that was being sent to Kabul via Chabahar.
  • When India restarted wheat aid this year, it negotiated with Pakistan to use the land route to Afghanistan instead.

Concerns for India due to delay in Projects : 

  • The Iran-China deal impinges on India’s strategic ties with Iran and the use of Chabahar port.
  • However, the rail line has never taken off for a number of reasons despite a commitment from state-owned IRCON, to undertake its construction at an estimated $1.6 billion.
  • While contract changes by the Iranian side and delayed responses from the Indian side were part of the problem, the main hurdle has been the fear of American penalties.
  • Even though India was able to negotiate a sanctions waiver for the Chabahar port and rail line from the U.SFew international construction and equipment partners were willing to sign on to the project; New Delhi has also dragged its feet on the matter.
  • Bandar-e-Jask lies to the west of Chabahar and right before the Strait of Hormuz which would allow China to extend its control along the Pakistan-Iran coast.

FAQs : 

1. When was the Chabahar Port deal signed?

Answer : The port is being developed as a transit route to Afghanistan and Central Asia.

In 2016, India signed a deal with Iran entailing $8 billion investment in Chabahar port and industries in Chabahar Special Economic Zone.

2. What is the 3-Fold Objective of India’s Strategy?

Answer :

  • To build India’s first offshore port and to project Indian infrastructure prowess in the Gulf

  • To circumvent trade through Pakistan, given the tense ties with India’s neighbor and build a long term, sustainable sea trade route and

  • To find an alternative land route to Afghanistan, which India had rebuilt ties with after the defeat of the Taliban in 2001