India Secures 10-year Agreement For Chabahar Port

Under the leadership of Prime Minister Narendra Modi, the Indian government announced on Monday the signing of a decade-long contract with Iran to develop and oversee operations at the Chabahar port. This marks a significant milestone in strengthening ties with Iran.

Chabahar port, located on Iran’s southeastern coast along the Gulf of Oman, holds strategic importance for India as it provides a vital route for transporting goods to Iran, Afghanistan, and Central Asian countries. It offers an alternative to the ports of Karachi and Gwadar.

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Despite facing obstacles due to US sanctions on Iran, the development of Chabahar port has been a priority for India. Speaking in Tehran after the signing ceremony, India’s Shipping Minister Sarbananda Sonowal highlighted the port’s role beyond trade facilitation, emphasizing its significance in strengthening regional supply chains.

Sonowal stressed the mutual commitment of India and Iran to maximize the port’s potential and access regional markets through collaborative efforts. He described the long-term contract as a testament to the enduring partnership between the two nations.

The agreement, formalized between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organization, involves an investment of around $120 million from IPGL, supplemented by $250 million in financing, totaling $370 million.

Since taking over operations in late 2018, IPGL has managed substantial container traffic and cargo shipments, facilitating the transportation of essential commodities from India to Afghanistan through Chabahar Port.

Indian Foreign Minister S Jaishankar highlighted the agreement’s significance during a press briefing in Mumbai, emphasizing increased investment opportunities in the port and its strategic importance for India.