TEHRAN (AIN) — Iran on Monday denied that it has dropped India from the Chabahar rail project, saying that “vested interest”" were behind such reports.

India had signed an agreement with Iran to construct a rail line from Chabahar port to Zahedan, along the border with Afghanistan. Last week, a report had surfaced claiming that the Hassan Rouhani-led government in Iran decided to exclude India from the construction project of Zahedan.

The Indian embassy in Iran stated that Ambassador Gaddam Dharmendra was invited by Saeed Rasouli, Deputy Minister Roads and Head of Iran Railways, to review the ongoing cooperation on Chabahar-Zahedan railway. Rasouli stated that "vested interests were behind recent reports that Iran excluded India from Chabahar-Zahedan railway project", the embassy said.

“Ambassador Gaddam Dharmendra was today invited by Saeed Rasouli Deputy Minister Roads and Head of Iran Railways to review ongoing cooperation on Chabahar-Zahedan railway. Rasouli stated that vested interests were behind recent reports that Iran excluded India from Chabahar-Zahedan railway”, Indian embassy in Iran said in a tweet.