TEHRAN: Strengthening their bilateral ties, India and Iran embarked on a significant venture on Monday, sealing a decade-long agreement aimed at the development and enhancement of the strategically vital Chabahar port in Iran. This pact underscores India’s strategic endeavor to expand its trade influence in the regions of west and central Asia.
The agreement secures a decade of access for India to utilize the port facilities, strategically positioned near Iran’s southeastern border with Pakistan, as confirmed by Iran’s Ministry of Roads and Urban Development.
Under the terms of the contract, India Ports Global Limited (IPGL) will inject $370 million into bolstering the port’s capabilities by deploying essential equipment and fortifying its transport infrastructure. The formal signing ceremony took place in Chabahar, with Iran’s urban development minister Mehrdad Bazrpash and India’s ports and shipping minister Sarbananda Sonowal officiating the agreement, which was broadcasted live on state media channels.
The genesis of this collaboration traces back to 2016 when India committed to financing the development of the Iranian port, envisioning it as a pivotal trading nexus for central Asia. This commitment materialized as Prime Minister Narendra Modi sought to reinvigorate economic relations with Tehran following the relaxation of sanctions.
During the tenure of Modi and former Iranian president Hassan Rouhani, a memorandum of understanding was inked, facilitating a line of credit from India’s EXIM Bank for the port’s development.
Despite facing impediments, notably the re-imposition of sanctions by the US from 2018 onwards post its withdrawal from the 2015 nuclear deal with Iran, the vision for Chabahar’s development persevered. Bazrpash emphasized the port’s potential to serve as a linchpin in the transit development of the region during the signing ceremony, expressing confidence in India’s role.
“We are pleased with this agreement, and we have full trust in India,” Bazrpash affirmed, underscoring the mutual commitment between Iran and India to maximize the potential of Chabahar port for joint access to regional markets, echoed by the Indian minister’s sentiments.
“This long-term contract symbolizes the enduring trust and effective partnership between India and Iran,” he added.
Prior to the onset of the Covid-19 pandemic in 2019, both nations pledged to expedite the project, signaling a shared determination to propel the Chabahar port initiative forward, a vital maritime gateway situated on the Indian Ocean approximately 100 kilometers (62 miles) west of the Pakistan border.
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