The Indian Embassy confirmed that Rasouli stated that "vested interests were behind recent reports that Iran excluded India from Chabahar-Zahedan railway project.

Last week, reports surfaced that Iran has dropped India from the Chabahar rail project because of delays in funding from India

India, however, denied the report and asserted that it remains committed to the project

Tehran: Days after a report claimed that Iran has dropped India from the Chabahar rail project, Iran on Monday denied the report blaming "vested interests" behind it and reassured India's active participation in the mega project.

Ambassador Gaddam Dharmendra was today invited by HE Saeed Rasouli Dy Minister Roads & Head of Iran Railways

Indian Embassy in Iran stated that Ambassador Gaddam Dharmendra was invited by Saeed Rasouli, Deputy Minister Roads and Head of Iran Railways, to review the ongoing co-op on Chabahar-Zahedan railway.

The Embassy also confirmed that Rasouli stated that "vested interests were behind recent reports that Iran excluded India from Chabahar-Zahedan railway project.

Ambassador Dharmendra also met Speaker of Iran's Majlis Baqer Qalibaf and held discussions to further boost ties between the two countries. The India Ambassador was called on the occasion of 70th anniversary of bilateral ties between India and Iran.

Last week, a report had surfaced claiming that the Hassan Rouhani government in Iran has decided to exclude India from the construction project of Zahedan, a railway line linking the Chabahar port with Afghanistan because of delays from India in funding the project.

The report further stated that the Iranian Railways will proceed without India’s assistance, using approximately $400 million from the Iranian National Development Fund.

The Modi government was quick to deny the report arguing that Tehran is yet to nominate an authorised entity to finalise the technical and financial issues related to the venture.

What Is Chabahar Rail Project?

Back in 2016, India had signed an agreement with Iran to construct a rail line from Chabahar port to Zahedan, along the border with Afghanistan.

The Chabahar port is being jointly developed by India, Iran and Afghanistan. The three countries consider the port, located on the Indian Ocean in the Sistan and Baluchistan province of Iran, a gateway to opportunities for trade with central Asian nations.

Easily accessible from India's western coast, the Chabahar port is increasingly seen as a counter to Pakistan's Gwadar Port, which is being developed with Chinese investment.