This MoU was signed in the presence of Abbas Akhoundi, Iran’s Minister of Roads and Urban Development, and his Indian counterpart, Nitin Gadkari, for the purchase and manufacturing of 200 freight train locomotives.
India has agreed to finance this MoU which is worth $600 million. Iran is going to manufacture part of the locomotives. This cooperation is said to be completed in at least three years.
The other important venue of cooperation touched upon during Akhoundi’s 3-day trip is developing the Chabahar-Zahedan railway route, which is valued at $1 billion. India has submitted proposals for this project and talks between Iran and India are ongoing.