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India gets the worst blow from Iran, strategic ambitions shattering

India gets the worst blow from Iran, strategic ambitions shattering

NEW DELHI – India gets the worst blow to its ambitions to reach CentralAsia through Iran as later has turned to China for Chabhar Portdevelopment.

India has pledged more than $500 million to develop the strategicallylocated port of Chabahar — roughly 1,800 kilometers (1,110 miles) from thecapital Tehran — since it first expressed interest in 2003. Yet repeateddelays have prompted Iran to turn to China in the hope of speeding upconstruction.

On a March trip to Islamabad, Iran Foreign Minister Javad Zarif said he’dwelcome Chinese and Pakistani investment in Chabahar. He cited China’sdevelopment of Gwadar, a port down the coast that is a showcase ofPresident Xi Jinping’s Belt-and-Road infrastructure initiative.

The shift makes sense for Iran, which wants to ensure Chabahar is aneconomic success. But it could be a strategic loss for India, which opposesChina’s expansion in the Indian Ocean and is already worried that Gwadarcould one day be used as a military base — along with other China-backedports from Myanmar to Bangladesh to Sri Lanka.

Any formal investment from Beijing would further weaken the strategicadvantage for India to invest in Chabahar, which is close to Pakistan’swestern border. The Gwadar port is part of Xi’s plan to finance $50 billionin infrastructure investments in Pakistan, and Chinese merchants alreadyhave a strong foothold in Chabahar.

China’s foreign ministry did not immediately respond to an email seekingcomment.

“Delhi would likely take the view that any Chinese presence at Chabahar,even if not involved in the operation of the port, could be used as a wayof undermining India’s influence with local authorities,” said DavidBrewster, a senior research fellow with the Australian NationalUniversity’s National Security College. “It could also be potentially usedto facilitate surveillance of India’s activities.”

*Iran Invite*

While it’s unclear whether China will take up Iran’s offer, the involvementof a cash-rich and expansionist Beijing would almost certainly speed updevelopment of the port.

China has overland train connections linking China to Iran and “huge”investments in the country, said Manoj Joshi, a distinguished fellow at theObserver Research Foundation think-tank. “China is much deeper there thanIndia.”

Iran’s invitation to invest was welcomed in Pakistan. “It’s a positivestatement that came for the first time from their side,” Dostain KhanJamaldini, chairman of the Gwadar Port Authority, said by phone. The twocountries are already discussing a new ferry service that would link portsin Gwadar and Karachi with the Iranian ports of Chabahar and Bandar Abbas,Jamaldini said.

Cooperation between the two ports could be awkward. India and Pakistan arehistoric foes that have fought several wars, while India and China — whichrecently faced off in the Himalayas — are battling for geopoliticalinfluence in South Asia.

Still, for Iran the port’s development is important. It will be a vitaltrading hub in the Gulf of Oman, said Ebrahim Jamili, head of theIran-India Chamber of Commerce in Tehran.

“The priority is with the Indians — they’ve been involved and came forwardfirst,” Jamili said. “But if another investor comes along and is interestedin Chabahar, there is certainly enough space and opportunity for them andfor their investment.”

While there’s been talks on Chinese and Pakistani involvement, Jamili saidPakistan is not a serious contender in terms of investment.

India first agreed to help Iran expand Chabahar port in 2003, constructingtwo terminals — a multipurpose cargo terminal and a container terminal.Progress slowed particularly as Western nations imposed sanctions on Iran,which were lifted in 2015. Delays have persisted since then, including atwo-year dispute over whether India would pay $30 million of excise dutieson port equipment imported into Iran.

Foreign ministry spokesman Raveesh Kumar said Monday construction was goingwell and both sides were meeting regularly. He was unable to give acompletion date.

“Significant progress” has been made at Chabahar, Mr Kumar said, noting itwas Iran’s “prerogative” to choose its partners.

Cooperation with China would help Iran to relieve its financial situationand promote infrastructure development, said Yang Guang, a researcher oninternational relations with state-run Chinese Academy of Social Sciences.

“China and Iran, as increasingly important economic forces on theinternational stage, have great potential for cooperation,” Yang said.