Union Budget Omits Funding for Chabahar Port Project
In a significant shift, the latest Union Budget from India does not include any funding for the Chabahar Port project. This decision comes amid renewed sanctions imposed by the United States on Iran.
Context of the Chabahar Port Project
For several years, India allocated approximately Rs 100 crore annually to support the development of the Chabahar Port in Iran’s Sistan-Balochistan province. This port is crucial for enhancing connectivity and trade between India and Iran.
US Sanctions Impact
The United States has been intensifying its economic sanctions on Iran, which has affected international partnerships, including the Chabahar project. Last year, the US granted India a six-month exemption from these sanctions specifically for the Chabahar Port, but this waiver is set to expire on April 26.
External Affairs Ministry spokesperson Randhir Jaiswal recently stated that India’s engagement with the US regarding the Chabahar Port continues. Following the expiration of the waiver, India is exploring various options concerning its involvement in the project.
The Significance of Chabahar Port
Chabahar Port holds strategic importance for both India and Iran. It is poised to enhance trade ties between the two nations and is a key component of the International North-South Transport Corridor (INSTC).
About the International North-South Transport Corridor (INSTC)
The INSTC is a multi-modal transport initiative spanning 7,200 kilometers. Its purpose is to facilitate freight transport among the following key regions:
- India
- Iran
- Afghanistan
- Armenia
- Azerbaijan
- Russia
- Central Asia
- Europe
As discussions continue regarding the Chabahar Port, the absence of funding in the Union Budget raises questions about India’s commitment to the project and its future development.
