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Tehran
India on Monday (May 13) reached a long-term agreement with Iran over the management of its Chabahar port, located strategically along the Gulf of Oman. India Ports Global Ltd & Ports & Maritime Organisation of Iran (PMO) signed the new 10-year contract. The Indian company will invest $120 million in the port and equip it with modern infrastructure.
The Indian delegation to Iran was led by Minister of Ports, shipping and waterways Sarbananda Sonowal, while Iranian side was represented by Mehrdad Bazrpash, Minister for Roads & Urban Development.
@sarbanandsonwal “Handed over the letter from EAM @DrSJaishankar to ??’s FM @Amirabdolahian offering a INR credit window equivalent of USD 250 million for Chabahar-related development. Reiterated India’s commitment to cooperate with ??in developing the Chabahar Port.@MEAIndia pic.twitter.com/ZzqbFfXxyu
— India in Iran (@India_in_Iran) May 13, 2024
Earlier, Indian Foreign Minister S Jaishankar told reporters in Mumbai that the new lease deal will pave the way for newer investments in the port.
"As and when a long-term arrangement is concluded, it will clear the pathway for bigger investments to be made in the port," Jaishankar said, in the wake of Sonowal’s visit to the Shi’ite nation.
Watch: India to sign pact with Iran for Chabahar | Egypt joins ICJ case against Israel
Reuters earlier cited a source in the shipping ministry as saying that Sonowal was expected to sign a “crucial contract” in Iran today that would ensure a long-term lease of the port to Indian companies.
India has been developing Chabahar port to get easy access to markets in Iran, Afghanistan and Central Asia via the Arabian Sea route, thus ending dependence on its arch-rival Pakistan.
Also read: The Capitals: New Delhi achieves crucial strategic breakthrough with Tehran outreach
However, the development of the port has faced several hurdles in the past, primarily because of US sanctions.
India plans to turn Chabahar port into a transit hub under the International North-South Transport Corridor (INSTC) to reach out to CIS (Commonwealth of Independent States) countries.
Earlier in January this year, Iranian President Ebrahim Raisi held talks with Jaishankar over speeding up the implementation of Iran-India agreements, including the Chabahar Port Development Plan, and further compensating for delays.
India also aims to neutralise Chinese presence in the region by boosting investments in Chabahar.
(With inputs from agencies)