×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 18 July, 2020

  • 3 Min Read

India – Iran recent ties and China

India – Iran recent ties and China

GS-Paper-2 International relation (Mains-I.V)

Recently, the Ministry of External Affairs (MEA) has confirmed that India is no longer involved in the Farzad-B gas field project of Iran. Further, it said that India has not received any response from Iran since December 2019 on the future of the Chabahar-Zahedan railway project as well.

It cited policy changes by the Iranian government, Iran’s uncertain finances, and the USA sanctions situation as the reasons behind the decisions on Indian infrastructure projects in Iran.

Farzad-B Gas Field:

  • It is located in Persian Gulf (Iran).
  • The contract for exploration of the field was signed in 2002 by Indian consortium comprising ONGC Videsh, Indian Oil Corporation and Oil India.

  • The contract expired in 2009 after declaration of commerciality of the field, based on the gas discovery.
  • It has gas reserves of more than 19 trillion cubic feet. ONGC has invested approximately USD 100 million.
  • Since then, the consortium has been trying to secure the contract for development of the field.
  • The major dispute between India and Iran was over setting up of two pipelines, and also over money to be quoted on the development plan.
  • Around 75% of the deal was finalised by May 2018, when the USA unilaterally withdrew from the nuclear deal and announced sanctions on Iran.
  • In January 2020, India was informed that in the immediate future, Iran would develop the field on its own and would like to involve India appropriately at a later stage.

Chabahar-Zahedan Railway Project:

In the ‘New Delhi Declaration’ signed in 2003, both countries had decided to jointly develop the Chabahar Port complex.

  • The Port development was exempted from the sanctions. India’s main investment in the Chabahar Port where it has taken over operations of one terminal, had progressed well in the last few years, handling 82 ships with 12 lakh tonnes of bulk cargo in 8200 containers since December 2018.
  • A contract to develop the 628-km railway line (Chabahar-Zahedan) along the Iran-Afghanistan border was signed in 2016.
  • IRCON was appointed by the Government of India to assess the feasibility of the project. It was working with CDTIC, an Iranian company.
  • It had completed the site inspection and review of the feasibility report. The Iranian side was to nominate an authorised entity to finalise outstanding technical and financial issues. India waited for the same.
  • However, Iran started work on the railway project in July 2020. India is not part of this project as of now since there is lack of clarity on whether it will attract the USA sanctions. However, it has conveyed to Iran that it is open to joining the project later.

Concerns for India

  • Iran’s growing proximity to China. Further, Iran seems to be sceptical of India’s diplomatic ties with the USA.
  • Farzad-B gas Field: India needs gas and Iran remains one of the best options as geographically, Iran is closest to India of all the countries in the Persian gulf region. Further, it could have improved India-Iran ties as the crude oil import from Iran remains impacted due to the USA sanctions.
  • Chabahar is not only a key to maritime relations between both the countries, but also provides an opportunity to India to reach Russia and Central Asia.
    Further, it allows India to bypass Pakistan which had blocked Indian aid to Afghanistan and all trade over land.

India needs to play a balancing act between the USA and Iran. Further, India needs to closely watch the space created by its exit. In a world where connectivity is seen as the new currency, India’s loss on account of these projects can become gain for some other country, especially China.

Source: IE


What is Mission Indradhanush ?

Mission Indradhanush was launched in 2014 under the Ministry of Health and Family Welfare.  1. Between 2009 - 2013, only 1% coverage per year has increased. We have to make it to 5%. 2. Objectives of Mission Indradhanush: We have the aim of full coverage by 2020. Cover all those children who are either unvaccinated or are part

Mediation Bill 2021 - Detailed Overview

A Bill that could alter the Mediation landscape The background behind Mediation Bill:         In General, Disputes Became part and parcel of  Day-to-Day Life. Someone or the Other belonging to family or else not a part of the family would be fighting for something. These Disputes may be for Smaller or B

Military exercises of India

List of all Military Exercises of India 2021 Military Exercises of India with Neighbours Sampriti: India & Bangladesh Mitra Shakti: India & Sri Lanka Surya Kiran: India & Nepal Hand in Hand Exercise: India & China Ekuverin: India & Maldives Military Exercises of India with Other countries Maitree Exer

Consumer Protection Rules, 2021

Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 1) Pecuniary Jurisdiction The Consumer Protection Act, 2019 The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state

Swachh Bharat Mission (Urban) 2.0

The Swachh Bharat Mission - Urban (SBM-U), launched on 2nd October 2014 aims at making urban India free from open defecation and achieving 100% scientific management of municipal solid waste in 4,041 statutory towns in the country. The objectives of the mission are mentioned below: Elimination of open defecation Eradication of Manual S

Students Achievement

Search By Date

Newsletter Subscription
SMS Alerts