The Iranian government has decided to go ahead with the rail line project from the Chahbahar port to Zahedan on its own, four years after it inked a deal with New Delhi to begin this project along the border of Afghanistan.
The Iranian government has cited a delay in funding from the Indian side to initiate the 628km-long project as the reason for it dropping India from the multi-million dollar project.
According to The Hindu, the country will now use around $400 million from the Iranian National Development Fund, instead of relying on financial assistance from India.
The railways project, which will be completed by March 2022, witnessed the inauguration of its track-laying process by Iranian Transport Minister Mohammad Eslami last week.
The blow to India comes in the backdrop of China finalising a huge $400 billion strategic partnership deal with Iran.