NEW DELHI/ TEHRAN, May 13: India today signed a 10-year contract to operate the strategic Iranian port of Chabahar that will help it expand trade with Central Asia.
The Chabahar port on the Gulf of Oman – which New Delhi had proposed to develop way back in 2003 – will provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor, bypassing Pakistan.
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US sanctions on Iran over its suspected nuclear programme had slowed the development of the port.
The long-term agreement was signed by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, an official statement said.
IPGL will invest about USD 120 million while another USD 250 million will be raised as debt.
The pact was signed in a ceremony attended by India’s Ports, Shipping and Waterways Minister Sarbananda Sonowal and Iranian Transport and Urban Development Minister Mehrdad Bazrpash in Tehran.
It replaces an initial 2016 pact, which covered India’s operations at Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis.
Chabahar port was last year used by India to send 20,000 tonnes of wheat aid to Afghanistan. In 2021, the same was used to supply environmentally friendly pesticides to Iran.
This is the first time India will take over the management of an overseas port that will also have a multiplier effect on trade among India, Iran and Afghanistan as efforts continue to directly tap the potential in Central Asia, bypassing neighbouring Pakistan.
According to an official statement, the contract was signed by India Ports Global Ltd (IPGL) and Iran’s Port & Maritime Organisation (PMO), in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal.
“The long-term bilateral contract on Chabahar Port Operation was signed between Indian Ports Global Limited (IPGL) of India and the Port & Maritime Organisation (PMO) of Iran, enabling operation of Shahid-Beheshti in Chabahar Port Development Project for a period of 10 years,” the statement said.
This is the first time India will take over the management of an overseas port. “This agreement aims to enhance regional connectivity and facilitate trade, particularly between India, Iran and Afghanistan,” the statement said.(PTI)
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