India , Iran Sign Pact For Development of Chabahar Port

07 May, Tehran

India and Iran have signed a Memorandum of Understanding for the development of the strategically important Chabahar Port in Iran.

The MoU was signed by Minister for Shipping and Road Transport and Highways Nitin Gadkari and Iranian Minister for Transport and Urban Development Abbas Ahmad Akhoundi in Tehran Wednesday .

A statement issued by the Ministry of External Affairs in New Delhi said that with the signing of MoU Indian and Iranian commercial entities will be able to commence negotiations for finalization of a commercial contract. Under the contract, Indian firms will lease two existing berths at the Port and operationalize them as container and multi-purpose cargo terminals.

The availability of functional container and cargo terminal at the port will provide Afghanistan’s garland road network system alternate access to a sea port. It will enhance Afghanistan’s overall connectivity to regional and global markets significantly and provide a fillip to the ongoing reconstruction and humanitarian efforts in the country.

The port located in Sistan-Balochistan Province on Iran’s southeastern coast is of great strategic utility for India.

It will get sea-land access route to Afghanistan bypassing Pakistan. United States has been asking India and other countries not to rush into doing business with Iran as Washington is yet to work out a deal with Tehran on the latter’s contentious nuclear programme.

The port will be used to ship crude oil and urea, saving India transportation costs.