India signs 10-year deal to operate Iran’s Chabahar port

The government under the leadership of Narendra Modi has said that India has signed a 10-year agreement with Iran to develop and operate the Iranian port of Chabahar. According to foreign news agencies, India, A port was being developed at Chabahar on Iran’s southeast coast along the Gulf of Oman to ship goods to Iran, Afghanistan and Central Asian countries, bypassing the ports of Gwadar, but US sanctions on Iran have slowed down the development of the port. Indian Shipping Minister Sarbananda Sonowal said in Tehran after the signing of the agreement that the importance of the Chabahar port goes beyond its role as a waterway between India and Iran. It serves as an important trade artery connecting the countries. He said that this link has opened up new avenues for trade and strong supply chain flexibility across the region. The Indian minister said that Iran and India have shared access to regional markets. Both countries are keen to develop Chabahar port as much as possible keeping in view the interests of both countries for access. He added that this long-term agreement is a sign of lasting trust and effective partnership between India and Iran. A long-term agreement was signed between Indian Ports Global Limited (IPGL) and the Port and Maritime Organization of Iran. Iranian Minister of Roads and Urban Development Mehrdad Bazarpash said that under the agreement, IP GL will invest around $120 million while financing an additional $250 million, making the deal worth $370 million. Chabahar, one of the transit development hubs in the region, he said at the signing ceremony. “We are happy with the deal, and we have full confidence in India,” he said. IPGL first opened the port in late 2018, an Indian government official said. and has since handled over 90,000 TEUs of container traffic and more than 8.4 lakh tonnes of bulk and general cargo. The official added that a total of 2.5 lakh tonnes of wheat and 2 Thousands of tonnes of pulses have been shipped from India to Afghanistan. Indian Foreign Minister S Jaishankar told reporters in Mumbai that this would pave the way for major investment in the port.

Hours after India inked a significant agreement to operate the Chabahar Port in Iran for a decade, the United States issued a cautionary statement, warning that “anyone” considering business deals with Tehran needs to be aware of the “potential risk of sanctions.”
Vedant Patel, principal deputy spokesperson for the US State Department, addressed the media, acknowledging the reported deal between Iran and India regarding the Chabahar Port.