Iran to finalize India’s financing of national rail project

August 13,The Iran Project – Deputy Head of Construction and Development of Transportation Infrastructure Company said Iranian officials will soon travel to India to finalize the country’s financing of the Islamic Republic’s national rail project.

Speaking to a reporter on Sunday, Jabbar Ali Zakeri said based on the MoU signed between Tehran and Delhi, Iran has provided the ground for Indians to finance the production of national rail in Esfahan Steel Company (ESCO).

Indians supply the steel ingot needed for smelting iron and ESCO converts it to the rolling, Zakeri noted, adding thus UIC60 rails withgood quality will be produced in Iran for the first time.

The official  referred to the advantages of cooperating with Delhi as not paying liquidity for using India’s credits for the production of national rail, and transferring rail production technology.

The Ministry of Industries, Mining and Trade; Ministry of Roads and Urban Development; and ECSO teamed up a few years ago to promote “National Rail Project” to reduce reliance on imported rails.

Meanwhile, there have been negotiations between ESCO and the Indian government to finance rail production by the Iranian steelmaker, Zakeri said earlier, adding in the first phase 100,000 tons of rails will be produced.

Iran’s sixth five-year economic development plan (2017-22) stresses, among other things, the need to develop the rail transport network.