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                                        Chabahar: China’s entry                                                                                                                                 • Duty row India and Iran are in row
                                                                                                                                                                                                over $30 million of excise duties on
                                                                                                                                                                                                port equipment imported into Tehran
                                        may hurt India’s interests

                                                                                                                                                                                                particularly in Asia can come
                                                                                                                                                                                                handy to New Delhi to create
                                        New Delhi needs be cautious as it is almost certain that cash-rich                                                                                      insurmountable roadblocks for
         ASIAN DRAMA                    China may try to dominate the strategically significant port through                                                                                    China in Afghanistan, though
                                                                                                                                                                                                not an easy task. But the US will
         Syed                           a huge investment in the project to primarily belittle India’s gain                                                                                     have to be more forthcoming
                                                                                                                                                                                                to side with India to protect
         NooruzzamaN                                                                                                                                                                            New Delhi’s strategic and other
                                             ndia is faced with a new challenge  and power projects, is set to outshine                                                                         interests in Kabul.
                                             from China, hungry for expanding  European Union (EU) nations and Rus-                                                                               The significance of Iran for
         The columnist — former              its influence in South Asia and the  sia in making investments in Iran. It                                                                         India’s interests in Afghanistan
         Deputy Editor of The                surrounding areas. India’s pledge   suits Iran too to have increased invest-                                                                       and Central Asian republics
         Tribune, Chandigarh —               for $500 million investment to   ment presence from China, Russia, the                                                                             cannot be underestimated. In-
         specialises in foreign         I develop Iran’s strategically and   EU or any other country to create a kind                                                                           dia will have to ignore US pres-
         affairs. With a career         economically significant Chabahar   of shield to protect it from adventurist                                                                            sure tactics not to go as closer
         spanning 41 years, he          port is going to be overshadowed with   military campaigns by the US or its allies                                                                      to Teheran as the situation
         keeps close watch on           China, on invitation from Iran, likely to   like Israel.                                                                                                demands. For India, proximity
         issues related to South        express its readiness to associate itself   According to the chief of Iran’s                                                                            to both Washington and Tehe-
         Asian countries. The           in a big way with the project. China’s   Organization for Investment, Economic                                                                          ran will have to be maintained
         views expressed are            CITIC Group, a state-owned invest-  and Technical Assistance, Mohammad                                                                                  intelligently to send across the
         personal                       ment agency, recently offered Iran a   Khazaie, direct investments in Iran by       most of the sanctions imposed on                               message that India under all kinds
                                        $10 billion credit line and the China   Chinese companies rose by 20 per cent       Iran were lifted, but not without   China’s aid to Iran        of circumstances will not allow its
                                        Development Bank is in the process of   during the period March 2014-January        reason. India will have to keep its own   in the development   interests to be compromised.
                                        providing $15 billion additional funds to  2018. The trade volume between the two   interests in view while taking any step   of different kinds     India may face trouble in the case
                                        Teheran. A part of Beijing’s $124 billion   countries, which grew by 22 per cent in   to cement its ties with Teheran.                             of Iran if the US withdraws itself from
                                        Belt and Road initiative, this is, perhaps,   2017, is expected to go up to $50 billion   Of course, it is Iran’s “prerogative”   of infrastructural   the 2015 nuclear deal with Teheran
                                        the largest investment commitment by   in 2018 from $40 billion in 2017.            to choose its partners, but India’s                            and involving other Western pow-
                                        any foreign country in the Persian Gulf   Iran, however, says, “The prior-          interests should not be allowed to   facilities such as        ers. Iran has been warning the world
                                        nation, freed from crippling economic   ity is with the Indians — they’ve been      be affected under all circumstances.   highways, railways      community that if the US indulges
                                        sanctions in 2015 following a nuclear   involved and came forward first (2003).     Will Teheran be able to ensure it?                             in  this irresponsible behaviour and
                                        deal with the US and its European allies.  But if another investor comes along      Whatever Iran may claim, China can   and power projects        withdraws itself from the nuclear
                                           Though Iran has declared that its   and is interested in Chabahar, there is      be expected to use every tactic it can   is set to outshine    deal, though aimed at capping Tehe-
                                        offer to China and Pakistan to provide   certainly enough space and opportu-        think of to create problems for India                          ran’s nuclear power facilities, there
                                        all kinds of assistance for developing   nity for them and for their investment.”   in the region and beyond.        EU and Russia                 may be the possibility of an exchange
                                        Chabahar to bring it to the level of Paki-  Obviously, Iran has invited China after   China’s entry into Chabahar                                  of hot words getting revived between
                                        stan’s Gwadar port will not affect India’s  making considerable calculations as     will not be only for trade purposes.                           the US and Teheran. In such a sce-
                                        association with this project, New Delhi   it has given hints that it does not want   Experts believe that Beijing will not   which is going to be extended to   nario, if it emerges all, India will have
                                        cannot accept the development without  Chabahar-linked cooperation remain-          hesitate to use the Iranian port for   Afghanistan. New Delhi will have to   to tread the path with a lot of caution.
                                        concern. It is almost certain that cash-  ing limited to India.                     surveillance purposes as it will do   convince Afghanistan that Chinese   Since Teheran is also involved in
                                        rich China may try to dominate Chaba-  Though India has invested in devel-          from Pakistan’s Gwadar port and   increased presence in the war-torn   the West Asian war theatre and fight-
                                        har through a huge investment in the   oping two terminals at the port which        those which have come up with Chi-  country may help Pakistan to keep   ing against Sunni Arab countries like
                                        project to primarily belittle India’s gain.   have become operational and are being   nese financial assistance in Myanmar,  troubling Kabul through Islamabad’s   Saudi Arabia in Syria, it would be a
                                        Iran too will welcome Chinese invest-  used for the supply of different kinds of    Bangladesh and Sri Lanka. In fact, it is   Taliban proxies so long as Afghanistan  major diplomatic challenge for India
                                        ment in the port project to any extent   items to Afghanistan and Central Asian     believed that China may find a way to   refuses itself to be used by Pakistan   to protect its interests by maintaining
                                        as it wishes to see it emerge as a major   countries, New Delhi and Teheran have    have its military presence in all these   for the latter’s strategic interests.  friendly relations with both camps.
                                        port as Pakistan’s Gwadar, developed   been involved in issues like a two-year-     ports, a very disturbing development,   It must be mentioned here that   New Delhi, therefore, cannot side
                                        exclusively by the Chinese. The distance   old dispute over whether India would     indeed, for India.             India has been protesting against   openly with any of the countries
                                        between the two ports is hardly 72 km.  pay $30 million of excise duties on port      India will have to prepare itself   the CPEC idea as it passes through   involved in the civil war in Syria and
                                           China, aiding Iran in the develop-  equipment imported into Iran. There          to meet the Chinese threat through   Pakistan-held Kashmir. The US   the rest of West Asia.
                                        ment of different kinds of infrastruc-  have also allegedly been investment-        these ports as also from the China-  growing interests in India to coun-
                                        tural facilities like highways, railways   related delays even after 2015, when     Pakistan Economic Corridor (CPEC),   ter Chinese expansionist designs         letters@tehelka.com



                                          Tehelka / 15 may 2018  54  www.Tehelka.com                                                                      Tehelka / 15 may 2018  55  www.Tehelka.com



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