India Signs Agreement with Iran

India has signed an agreement with Iran to operate the Iranian Chabahar port for 10 years. This was announced by the government of Indian Prime Minister Narendra Modi, as reported by Reuters.

According to the report, the agreement is intended for a duration of 10 years. The signing took place in Tehran, where India's Minister of Shipping, Sarbananda Sonowal, had arrived.

The long-term contract was signed between Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organisation. India has been developing the Chabahar port, located on Iran’s southeastern coast, as a route for transporting goods to Iran, Afghanistan, and Central Asian countries, bypassing the ports of Karachi and Gwadar in Pakistan.

However, according to the publication, U.S. sanctions on Tehran have slowed down the development of the port. Iran's Minister of Roads and Urban Development, Mehrdad Bazrpash, stated that IPGL will invest approximately $120 million, along with an additional $250 million in funding, bringing the total value of the contract to $370 million.

Chabahar is Iran's only port with a direct outlet to the Indian Ocean. India is also aiming to transform the Chabahar port into a transit hub as part of the 'North-South' International Transport Corridor to gain access to the CIS market.