In a significant development bolstering Indo-Iran ties and aiming to transform the Chabahar Port into a pivotal regional trade and connectivity center, India and Iran officially inked a long-term agreement on Monday for the operation of the Shahid-Beheshti Port Terminal. The signing ceremony, attended by high-ranking officials from both nations, including India's Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, and Iran's Minister for Roads and Urban Development, Mehrdad Bazrpash, marks a crucial step forward in enhancing bilateral cooperation.
The new 10-year contract, signed between India Ports Global Ltd (IPGL) and the Ports & Maritime Organization of Iran (PMO), underscores IPGL's commitment to further develop and manage the port during the contract period. As part of the agreement, IPGL is set to invest approximately $120 million to enhance the port's infrastructure. Additionally, India has extended a line of credit worth USD 250 million for joint projects aimed at enhancing Chabahar's infrastructure.
Chabahar Port, a flagship project for both India and Iran, serves as a vital transit point for trade with landlocked Afghanistan and Central Asian nations. India has played a pivotal role in the port's development, investing in its infrastructure and upgrading facilities to facilitate smoother transit of Indian goods to Afghanistan and beyond.
The recent milestone follows a series of high-level engagements between the two countries. In August 2023, Indian Prime Minister Narendra Modi met with Iranian President Ebrahim Raisi during the BRICS Summit in Johannesburg, where they emphasized the importance of finalizing the long-term contract for Chabahar. Speaking on the occasion, Minister Sonowal hailed the agreement as a "historic milestone," highlighting the enduring partnership between India and Iran.
The Chabahar Port project has been a focal point of India's efforts to bolster regional connectivity. During his visit to Tehran, Sonowal reiterated India's vision of making Chabahar an international hub of connectivity and facilitating trade with Afghanistan and Central Asia. He emphasized India's commitment to supporting Afghanistan during challenging times, citing humanitarian aid shipments via Chabahar Port.
The Chabahar Port initiative aligns with India's broader strategy of promoting regional economic integration, exemplified by initiatives such as the "Chabahar Day" in Mumbai in 2022. Furthermore, discussions between Indian External Affairs Minister S Jaishankar and Iranian counterparts have centered on establishing a long-term cooperation framework for Chabahar, as well as enhancing connectivity through the International North-South Transport Corridor (INSTC).
Prime Minister Modi's interactions with President Raisi have underscored both nations' commitment to maximizing the potential of Chabahar Port as a key connectivity hub. Located strategically on Iran's southeastern coast, Chabahar offers a shorter and more accessible route for trade between India, Iran, Afghanistan, and Central Asia, further solidifying its significance in the region's economic landscape.
