The project involves development of Iran’s Chabahar port and connecting it to the city of Bam with a rail line. The distance between the port and city is 600 km. Iran’s communication ministry and a consortium of Indian companies consisting of Rites, Ircon and Alps had signed a memorandum of understanding (MoU) to this effect a couple of years back. Both nations are to bear the cost of the project equally.

FE had earlier reported that even though the Iranian side was proceeding with the project and conducting surveys, the Indian government, when asked, seemed to have no idea about it. Also, as Ircon had backed out from the project, saying that port development was not its expertise, the completion of the project seemed to have come under a cloud.

However the director general (international affairs) of Iranian railways, A Nazari, told FE that the project is very significant for Iran and the Iranian government has already completed and submitted the feasibility report on the project to the Indian government. “Currently, the technical aspects of the project are being ironed out, and after that the financial details would be worked out. However, as it is a long-term project, it would take some time to get completed, but it is very much on, as it holds a lot of significance for us,” Mr Nazari said.

The project, sources say, would open up possibilities for India to establish rail links with other Central Asian nations.