India and Iran sign long-term contract to enhance Chabahar Port connectivity

In a significant development aimed at bolstering regional trade and connectivity, India and Iran have inked a long-term contract for the operation of the Shahid-Beheshti Port Terminal in Chabahar. The contract signing ceremony, held in Tehran, was attended by high-level delegations from both countries, including India's Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, and Iran's Minister for Roads and Urban Development, Mehrdad Bazrpash.

Under the newly signed 10-year contract, India Ports Global Ltd (IPGL) will take the responsibility of equipping and operating the port. IPGL has pledged an investment of approximately $120 million USD for enhancing the port's infrastructure. Moreover, India has extended a credit window of $250 million USD for mutually identified projects aimed at improving Chabahar-related infrastructure.

Chabahar Port, situated in the Sistan-Baluchistan province of Iran, holds immense significance as a strategic maritime facility. It serves as a crucial transit point for trade between India, Iran, Afghanistan, and Central Asian countries, providing a shorter and more accessible route for cargo ships.

The Chabahar project has been a flagship initiative between India and Iran, aiming to establish the International North-South Transport Corridor (INSTC) and boost connectivity in the region. India's involvement in the development and operation of Chabahar Port underscores its commitment to enhancing trade and transit links with Afghanistan and Central Asia.

Speaking on the occasion, Minister Sarbananda Sonowal hailed the signing of the long-term contract as a historic milestone in the enduring partnership between India and Iran. He emphasized that the agreement symbolizes the deepening trust and cooperation between the two nations, driven by the visionary ideals of leaders like Prime Minister Narendra Modi.

Sonowal reiterated India's vision of making Chabahar Port an international hub of connectivity and facilitating trade with landlocked Afghanistan and Central Asian countries. He highlighted India's humanitarian assistance efforts, including the supply of wheat, pulses, and pesticide through Chabahar Port, especially during challenging times like the COVID-19 pandemic.