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column                                                                                        Foreign aFFairs





 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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