HT Digital,
New Delhi, May 13: In a significant development aimed at bolstering the relationship between India and Iran while also strategically elevating the Chabahar Port’s status to a pivotal hub for regional trade and connectivity, the two countries formally sealed a long-term agreement on Monday for the operation of the Shahid-Beheshti Port Terminal. The signing ceremony, which saw the participation of top officials from both sides, including India’s Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, and Iran’s Minister for Roads and Urban Development, Mehrdad Bazrpash, represents a critical stride forward in strengthening bilateral cooperation.
The freshly inked 10-year contract, brokered between India Ports Global Ltd (IPGL) and the Ports & Maritime Organization of Iran (PMO), underscores IPGL’s dedication to not only managing but also enhancing the port’s capabilities throughout the duration of the agreement. Part of this commitment involves an estimated investment of around $120 million by IPGL to bolster the port’s infrastructure, paving the way for smoother operations and increased efficiency.
Related Posts:
Moreover, India has extended a substantial line of credit amounting to USD 250 million for collaborative projects aimed at bolstering Chabahar’s overall infrastructure. Chabahar Port, a flagship venture for both India and Iran, holds immense strategic significance as a vital transit point facilitating trade with Afghanistan and various Central Asian countries. India has been instrumental in the port’s development, injecting funds into its infrastructure and upgrading facilities to facilitate the seamless transit of Indian goods not only to Afghanistan but also beyond.
This recent milestone builds upon a series of high-level engagements between India and Iran. In August 2023, Indian Prime Minister Narendra Modi and Iranian President Ebrahim Raisi met during the BRICS Summit in Johannesburg, where they reiterated the necessity of finalizing a long-term agreement for Chabahar. Minister Sonowal, speaking at the signing ceremony, lauded the agreement as a “historic milestone,” underscoring the enduring partnership between India and Iran in fostering regional connectivity and economic growth.
