India and Iran Forge Strategic Partnership with 10-Year Deal to Operate Chabahar Port

 India Secures 10-Year Deal to Revitalize Iran's Chabahar Port: Enhancing Regional Connectivity and Trade Opportunities

India and Iran have recently inked a significant 10-year deal regarding the operation of Iran's Chabahar port, marking a pivotal moment in their bilateral relations. Spearheaded by the Narendra Modi-led government, this agreement solidifies India's commitment to bolstering ties with this strategic Middle Eastern nation.

Chabahar port, located on Iran's south-eastern coast along the Gulf of Oman, has long been a focal point for India's efforts to establish efficient trade routes to Afghanistan and Central Asian countries, circumventing the congested ports of Karachi and Gwadar. Despite facing challenges due to US sanctions on Iran, the port's development has persisted, underscoring its importance as a crucial trade artery in the region.

Indian Shipping Minister Sarbananda Sonowal emphasized the significance of Chabahar port beyond its role as a mere conduit, highlighting its pivotal role in facilitating trade and enhancing supply chain resilience across the region. The agreement reflects the shared commitment of Iran and India to maximize the port's potential and leverage its strategic location for mutual economic benefits.

The long-term contract, signed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, signifies a landmark step in bilateral cooperation. With an investment of approximately $120 million from IPGL and additional financing of $250 million, totaling the contract's value to $370 million, the agreement sets the stage for further infrastructure development and expansion of the port's capabilities.

Iranian Minister of Roads and Urban Development, Mehrdad Bazrpash, hailed Chabahar port as a pivotal hub for regional transit development, expressing confidence in India's role as a trusted partner in this endeavor. Since assuming operations at the end of 2018, IPGL has facilitated significant cargo traffic, including container traffic exceeding 90,000 TEUs and bulk and general cargo surpassing 8.4 million tonnes.

Indian Foreign Minister S Jaishankar expressed optimism about the agreement's potential to attract larger investments into the port, underscoring its role in fostering economic growth and connectivity in the region. With the successful execution of this deal, India and Iran are poised to strengthen their economic ties and unlock new avenues for trade and cooperation in the years to come.