Iran signs $2 billion rail deal with India

[Reddy]

Some important points from the article:

Iran and India signed an agreement worth $2 billion for cooperation in the rail sector. A part of the agreement pertains to a memorandum of understanding worth $600 million for Iran to purchase locomotives and freight cars from India. Akhoundi was quoted as saying by the news portal of his ministry that India has expressed readiness to finance the purchases.

Two other projects embedded in the $2 billion deal include the development of Chabahar-Zahedan Railroad worth $1 billion and rail supply for Iranian projects.

India has agreed to build a 500-km railroad from Chabahar to Zahedan, the capital of Sistan-Baluchestan Province, close to the Afghan border. India’s state-owned IRCON has agreed to build a rail route at a cost of $1.6 billion as part of the transit corridor to Afghanistan.

After connecting Chabahar to Zahedan, the railroad will be linked to Zaranj in Afghanistan. When the Afghan cargo arrives in Zahedan, it can be transported by a 1,380-km railroad to Chabahar and then shipped to India.

The new locomotives will help transport passengers and freight in Iran.

“They will also be used in Chabahar-Zahedan railroad to accelerate growth in Chabahar Port in line with India’s goal to connect to Central Asia and ultimately Europe through this Iranian port,” he said.

The first phase of the strategic Iranian port, which India helped develop, was inaugurated by Iran's President Hassan Rouhani on Dec. 3. The opening of the first phase of Shahid Beheshti Port (out of five phases defined for the project) has tripled its capacity to 8.5 million tons (equal to that of all the northern ports of the country). It will allow the docking of super-large container ships (between 100,000 DWT and 120,000 DWT) and increase India’s connectivity with Afghanistan.

https://financialtribune.com/articles/domestic-economy/79897/iran-signs-2b-rail-deal-with-india

 

[big_gamer007]

Good deal for India..

 

[CricketCartoons]

Good deal for India..

Also good deal for the middle class indians, who get a high with india having business or political deals with other nations while farmers keep committing suicide.

 

[Varun]

We've been exporting our railway products for decades, though only regionally.

Iran might turn out to be an important customer in years to come.

 

[jusarrived]

Also good deal for the middle class indians, who get a high with india having business or political deals with other nations while farmers keep committing suicide.

its the tax/money generated from these business deals which allows Govt to subsidize farming . Lets not mix these things , both are equally important

 

[CricketCartoons]

its the tax/money generated from these business deals which allows Govt to subsidize farming . Lets not mix these things , both are equally important

What money is being generated by building roads in Afghanistan?

 

[Reddy]

Also good deal for the middle class indians, who get a high with india having business or political deals with other nations while farmers keep committing suicide.

What money is being generated by building roads in Afghanistan?

Learn to read before spouting off idiotic comments, this is a Rail deal with Iran where India will sell them rail equipment, thus generating profits and more employment for India, hope that Bangladesh can also have such sales and deal with other countries instead of posting jealous comments.

And regarding your Afghan road comment, i am answering eventhough the topic is Rail deal between Iran and India, the Afghan road projects are also done by Indian companies and Indian engineers and benefits do not only stop there as we get to build trade routes to trade with Afghanistan and also the same road will be part of the International North-South trade corridor which will connect India to Central Asian states and Europe, the transportation costs for goods will fall by 50% after this route gets operational in 2018.

 

[jusarrived]

What money is being generated by building roads in Afghanistan?

Afg is eventually a market , you start with building roads in 10-15 years we will expand to other areas and to the whole region . its all about increasing your share in world trade , poor Asian and African countries can grow faster than any other region in next 10-20 years and thats where India and our companies need to be present .