The managing director of India’s IRCON, Mohan Tiwari, and the Deputy Minister for Railways of Iran, Pourseyed Aghaei, signed a Memorandum of Understanding valuated at more than USD 2 billion. IRCON will invest USD 1.6 billion and will provide services for all superstructure works. India has agreed to finance this MoU which is worth USD 600 million.
Under the agreement, Iran will purchase 200 freight locomotives from India. Iran is going to manufacture part of the locomotives, the Ministry of Roads and Urban Development of Iran says. This cooperation is said to be completed in at least three years.
Another component of the MoU involves the development of the 500-km Chabahar-Zahedan railway line, with a total estimated value of USD 1 billion. For this project, India has submitted proposals and the negotiations are ongoing. The railway line is part of the transit corridor to Afghanistan.
The MoU was signed in the presence of Abbas Akhoundi, Iran’s Minister of Roads and Urban Development, and his Indian counterpart, Nitin Gadkari.
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