India, Iran sign crucial 10-yr contract to run Chabahar port
text_fields
New Delhi: In a bid to boost regional connectivity as well as cooperation in trade, India and Iran signed a 10-year contract for the running of a terminal of the strategic Chabahar port in Iran. Chabahar port became the first for India to manage a port abroad, and the initiative is expected to have a multiplier effect on trade among India, Iran and Afghanistan, PTI reported.
India is putting all efforts to directly tap the potential in Central Asia, bypassing Pakistan.
This is the first time India will take over the management of an overseas port that will also have a multiplier effect on trade among India, Iran and Afghanistan as efforts continue to tap the potential in Central Asia directly, bypassing neighbouring Pakistan.
According to an official statement, the contract was signed by India Ports Global Ltd (IPGL) and Iran's Port & Maritime Organisation (PMO) in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal.
"The long-term bilateral contract on Chabahar Port Operation was signed between Indian Ports Global Limited (IPGL) of India and the Port & Maritime Organisation (PMO) of Iran, enabling operation of Shahid-Beheshti in Chabahar Port Development Project for a period of 10 years," the statement said.
This is the first time India will take over the management of an overseas port. "This agreement aims to enhance regional connectivity and facilitate trade, particularly between India, Iran and Afghanistan," the statement said.
The India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of IPGL, facilitated the first consignment of exports from Afghanistan to India in 2019.
The statement said the operations continued through short-term contracts while negotiations on the long-term agreement picked pace with the visit of Mr Sonowal to Chabahar in August 2022.
"This 10 years long-term lease agreement further strengthens the bilateral ties between the two countries while bolstering confidence and boosting trust of trading communities from the region," the statement said.
As part of the agreement, the statement said India would procure MHCs, RMQCs, RTGCs, Reach Stackers, Forklifts, Pneumatic Unloaders etc, at Chabahar Port. "The agreement paves the way for enhanced trade and investment opportunities, which will potentially boost India's economic development," it said.