With 10 year agreement India renews commitment to Chabahar port
By IAR Desk
Eight years after concluding the general framework of cooperation on the Chabahar port in Iran, India and Iran on Monday signed a 10-year contract for its operation.
The long-term agreement was signed between Indian Ports Global Ltd. (IPGL) and Port and Maritime Organisation (PMO) of Iran, enabling operation of the Shahid-Behesti terminal. Subsequently, IPGL will invest approximately $120 million in equipping the port. India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure, officials said.
The Indian Embassy in Tehran announced on X that the contract between India and Iran was signed in Tehran by India Ports Global Ltd and the Ports and Maritime Organisation of Iran in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal.
“Chabahar Port’s significance transcends its role as a mere conduit between India and Iran; it serves as a vital trade artery connecting India with Afghanistan and Central Asian Countries,” India’s Shipping Minister Sarbananda Sonowal said in Tehran, after the signing of the agreement.
“This linkage has unlocked new avenues for trade and fortified supply chain resilience across the region.”
India committed to develop the Shahid Beheshti terminal of Chabahar port during Prime Minister Narendra Modi’s visit to Tehran in 2016, with the Indian leader earmarking $500 million for the development works.
A trilateral agreement among Iran, India and Afghanistan on ‘Establishment of International Transport and Transit Corridors’ to facilitate movement of goods between India and central Asian states was also signed the same year.
The port’s operations have been managed by New Delhi-backed India Ports Global Limited (IPGL) since 2018.
On Monday, External Affairs Minister S Jaishankar said the Chabahar Port will definitely see more investments and connectivity linkages coming out of it after India and Iran signed a long-term contract for the operation of its Shahid Beheshti Port terminal.
This is the first time India will take over the management of an overseas port.
Soon after the announcement Vedant Patel, deputy spokesperson of the US State Department, while responding to a question of the agreement between India and Iran, said “Broadly, you’ve heard us say this in a number of instances, that any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions.”
Iran is under a range of US sanctions for its nuclear program after then US President Donald Trump pulled his country out of the Joint Comprehensive Plan of Action (JCPOA) or the Iran deal signed between Iran, the EU, Russia, and the US.
– With input from agencies
