Under the USD 370 million deal, India will develop and operate the Shahid Beheshti Port Terminal of Chabahar in Iran, giving a major boost to relations between the two countries.
May 16, 2024
India and Iran have signed a 10-year-old agreement worth USD 370 million regarding the operations at the Chabahar port, as well as for the development of infrastructure around the strategic facility in the Gulf of Oman.
The long-term main contract for the development of Shahid Beheshti Port Terminal, Chabahar, was signed between India Port Global Limited (IPGL) and the Port & Maritime Organization (PMO) of Iran.
Under the agreement, the Indian state-run firm will invest about USD 120 million to develop the area around the Shahid Beheshti terminal. It will procure equipment such as mobile harbor cranes, rail mounted quay cranes, rubber tyred gantry cranes, reach stackers, forklifts and pneumatic unloaders.
Further, India has offered a credit window equivalent to USD 250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.
Union Minister of Ports, Shipping and Waterways and AYUSH, Mr. Sarbananda Sonowal and Mr. Mehrdad Bazrpash, Minister of Roads and Urban Development of Iran, were present on the occasion. The Ministers recalled the common vision of their leaders to further strengthen bilateral cooperation in connectivity initiatives and in making Chabahar Port a regional connectivity hub.
They said the signing of the long-term contract will further strengthen ties between the two nations and highlight the importance of Chabahar as a gateway for trade with Afghanistan and other Central Asian countries. The development of the Chabahar Port Project is an India-Iran flagship project.
Handing over a letter from External Affairs Minister S Jaishankar to his Iranian counterpart Hossein Amirabdollahian regarding the credit window, Mr. Sonowal reiterated India’s commitment to cooperate in developing the port.
Also Read: ArcelorMittal Nippon Steel India Eyes Record Breaking USD 1 Billion Loan
The two leaders discussed ‘furthering’ the shared vision of making Chabahar port a regional connectivity hub connecting India to Afghanistan, Central Asia, and Eurasia.
Sonowal said the signing of the contract will have a multiplier effect on the viability and visibility of Chabahar, which was not only the closest Iranian port to India, but also an excellent port from a nautical point of view.
