A deputy to Iran’s Ports and Maritime Organization, Farhad Montaser, called the story “totally false because Iran has not inked any deal with India regarding the Zahedan-Chabahr” railway, Al Jazeera reported.

“Iran has only signed two agreements with Indians for investment in Chabahar: One is related to the port’s machinery and equipment, and the second is related to India’s investment to the tune of $150 million,” Montaser was quoted as saying by IRNA.

“We had a list of Indian investments in Chabahar port, which also included the issue of Chabahar railway infrastructure and the railway, but during the negotiations, it was not agreed upon.”

He added, “Sanctions have nothing to do with the Iran-India cooperation in Chabahar.”

The Hindu newspaper reported on Tuesday that the Iranian government decided to proceed with the long-stalled rail project without India’s participation.

A track-laying ceremony for the Chabahar-Zahedan rail line was held last week. It will eventually stretch to Zaranj on the Afghan side, enabling hassle-free trade and movement.

The Indian consultancy IRCON has pledged to provide all services and funding for the project, estimated at about $1.6 billion, according to the Hindu report.

Behrouz Aqaei added the Chabahar-Zahedan railroad connects states on the rims of the Sea of Oman and the Indian Ocean as well as East Africa to the CIS countries, Russia and Eastern Europe, IRNA reported.

The official noted, “Once constructed, the railroad can help revive and activate transit of high-quality mineral resources in Afghanistan.”

Once this railroad becomes operational, it will be the most economical rail route for trade in the region, Aqaei said.

He noted that Chabahar port is the safest and least expensive route for exports and imports as well as goods transit among countries such as India and Afghanistan and the CIS countries.

The official said transit will play a very favorable role in the economic prosperity of Sistan and Baluchestan Province.

Domestic and foreign private sector can use the advantages offered by the Shahid Beheshti port of Chabahar and its investment opportunities, once its first phase is completed and its annual cargo handling (loading and unloading) capacity increases to 8.5 million tons, Aqaei said.

Speaking at a ceremony to launch a new subway station in Hashtgerd in the northern province of Alborz on Tuesday, Eslami highlighted his ministry’s plans to improve the Iran rail network, reported Tasnim News Agency.

In recent years, the Iranian administration has ramped up efforts to boost the country’s railroad industry.

In November, Iran inaugurated a new railroad connecting the northwestern cities of Mianeh and Bostan Abad, which shortens the International North-South Transport Corridor (INSTC).

The agreement on the INSTC project was signed in 2012. Among the signatories and acceding countries are Russia, Iran, India, Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman, and Syria. Bulgaria has an observer status in the project.

The INSTC project envisages the construction of transport and infrastructure facilities along the shipping route through India, Iran, Azerbaijan, Russia, and North Europe.

The project is aimed at reducing the costs and the time of railroad and maritime deliveries between the countries located along the route.