Chabahar Port Deal Signed Between India, Iran; New Delhi Takes Over Management Of Key Port For Next 10 Years

Chabahar Port Deal: In a historic first for India, New Delhi and Tehran on Monday signed a long-term contract for the operation of the Shahid Beheshti Port terminal at Chabahar in Iran. The pact grants India operational control of the port for the next 10 years. This is the first time India will take over the management of an overseas port.

The Indian delegation to Iran was led by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, while Mehrdad Bazrpash, Minister for Roads and Urban Development, was present from the Iranian side.

"With the signature of this contract, we have laid the foundations of India’s long-term involvement at Chabahar," Sonowal stated. He added, "The signature of this contract will have a multiplier effect on the viability and visibility of Chabahar port."

Hon’ble Minister @sarbanandsonwal MoPSW:” With the signature of this contract, we have laid the foundations of India’s long-term involvement at Chabahar” @MEAIndia pic.twitter.com/mMF8dqxKLt

— India in Iran (@India_in_Iran) May 13, 2024

The contract has been signed between India Ports Global Ltd (IPGL) and the Ports & Maritime Organisation of Iran (PMO). As part of the deal, IPGL will commit to further equipping and operating the port for the duration of the contract. At the end of the 10-year period, both sides would further extend their cooperation in Chabahar.

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IPGL will invest approximately USD 120 million in equipping the port. India has also offered an in credit window equivalent to USD 250 million, for mutually identified projects aimed at improving Chabahar-related infrastructure. The Chabahar Port is an India-Iran flagship project that serves as an important transit port for trade with Afghanistan and Central Asian countries, which are landlocked countries.

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India has been a key player in the development and operation of Chabahar Port. The Indian government has invested in the port's infrastructure and has been involved in upgrading its facilities to make it a viable transit route for Indian goods bound for Afghanistan and Central Asia.

(With inputs from agencies)