India and Iran signed an agreement four years ago to construct a 628 Kilometer of railway track from the strategic port of Zahedan along the border of Afghanistan. Now the Iranian Government has decided to go for the construction on its own. Citing delay from the Indian side for funding and construction which supposed to get completed by March 2022.
This comes amid the $400 Billion strategic deal finalization with China for 25 years. This might be the added cushion to the Iran Government to drop India from the project. Iran will use approximately $400 Million from the Iranian National Development Fund to construct the railway track alone.
Chabahar seaport is the only seaport Iran has in its energy-rich Sistan Balochistan region. This Port is a counter to the Pakistan Gwadar Port which was developed with the Chinese Investment
In December 2017 after the inauguration, India took the operations of the port and commissioned a second port this January, helping the country maritime entry into the foreign land. Also opened a strategic route connecting Iran with India and Afghanistan bypassing Pakistan.