India has inked a significant agreement with Iran, bolstering its ties with the strategic Middle Eastern nation. The 10-year contract, announced by the Narendra Modi-led government, focuses on the development and operation of the Iranian port of Chabahar.
Chabahar, situated on Iran’s south-eastern coast along the Gulf of Oman, holds immense potential for India’s maritime ambitions. By investing in the port’s infrastructure, India aims to establish a crucial trade route to Afghanistan and Central Asian countries, circumventing Pakistan’s Karachi and Gwadar ports, its regional rival.
However, the progress of Chabahar Port has faced setbacks due to U.S. sanctions on Iran, which hindered its development. Despite these challenges, the recent agreement signifies a renewed commitment from both India and Iran to advance the port’s capabilities.
India’s Shipping Minister Sarbananda Sonowal emphasized the pivotal role of Chabahar Port, stating that it serves as more than a mere trade link between India and Iran. It acts as a vital trade artery, enhancing connectivity and supply chain resilience across the region.
The long-term deal, signed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organization of Iran, involves substantial investments. IPGL is set to invest approximately $120 million, with an additional $250 million in financing, totaling the contract’s value to $370 million, as confirmed by Iranian Minister of Roads and Urban Development Mehrdad Bazrpash.
Since taking over operations at the end of 2018, IPGL has made significant strides in Chabahar Port’s operations. It has handled container traffic exceeding 90,000 TEUs and bulk and general cargo surpassing 8.4 million tonnes. Notably, the port has facilitated the shipment of 2.5 million tonnes of wheat and 2,000 tonnes of pulses from India to Afghanistan.
Indian Foreign Minister S. Jaishankar highlighted the agreement’s significance, stating that it will pave the way for more substantial investments in the port’s infrastructure, contributing to regional trade and economic growth.
Source: reuters
