India has signed a long-term contract with Iran for the operation of the Shahid Beheshti Port in Chabahar, the Ministry of External Affairs said on Monday, announcing a move expected to boost Delhi’s investments and connectivity linkages to Tehran.
New Delhi has been developing part of the port in Chabahar on Iran’s southeastern coast along the Gulf of Oman as a way to transport goods to Iran, Afghanistan and central Asian countries, bypassing the port of Karachi and Gwadar in its rival Pakistan. US sanctions on Iran over the years, however, have slowed the port’s development.
This announcement comes hours after Union Shipping Minister Sarbananda Sonowal flew to the West Asian country to seal the deal. Hailing the move as a pivotal moment in the bilateral partnership, MEA spokesperson Randhir Jaiswal said the deal holds promise for enhancing India’s linkages with Afghanistan, Central Asia, and Eurasia.
READ MORE: Five Reasons Why The Chabahar Port Is Of Strategic Importance To India
| Scripting a new chapter in bilateral partnership!Minister @shipmin_india & @moayush @sarbanandsonwal witnessed the signing of the long-term contract for the operation of the Shahid Beheshti Port in Chabahar, between India Ports Global Ltd. & Ports and Maritime… pic.twitter.com/hUddkyQrkE
— Randhir Jaiswal (@MEAIndia) May 13, 2024
Why Is Chabahar Important
Chabahar is described as a linchpin in India’s quest for regional connectivity, economic growth, and geopolitical influence. Despite challenges posed by US sanctions and infrastructural constraints, India, under the Narendra Modi government, remained steadfast in its commitment to harnessing Chabahar’s potential. Reports said the contract signed on Monday will likely be for 10 years and will give India management control over a part of the port.
Earlier today, External Affairs Minister S Jaishankar said India expects to secure a “long-term arrangement” with Iran on Chabahar port. “My understanding is that my Cabinet colleague Sarbananda Sonowal is going to Iran today and it is expected that we would see a long-term agreement between India and Iran,” the minister told reporters during an event in Mumbai. “The expectation is that we will see more investments and connectivity linkages from that part of the port. It’s definitely heading in a good direction,” he added.
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