India has made a significant pact with Iran regarding the Chabahar Port. Under this deal, for the next ten years, India will oversee the entire port operations, seen as a blow to China and Pakistan.
The Union Minister Sarbananda Sonowal provided details on this deal with Iran. He announced that India will operate the Shahid Beheshti terminal of Chabahar Port for ten years, describing the agreement as a historic moment for the Indo-Iran relations and regional connectivity.
The agreement was sealed between India's India Ports Global Limited (IPGL) and Iran's Ports and Maritime Organization (PMO). IPGL was established to operate ports outside India. This is the first time India will manage a foreign port.
However, the deal has troubled the United States, which issued a warning stating that any country engaging in business deals with Iran risks facing sanctions.
The central agreement involves an Indian minister visiting Iran. This deal not only boosts regional connectivity but also opens pathways for India to Afghanistan and Central Asia.
Under the deal, IPGL will invest $120 million and extend a loan of $250 million, constituting a total commitment of $370 million.
India had been managing operations at the Shahid Beheshti terminal under a short-term agreement that required periodic renewals. The new long-term agreement replaces this arrangement.
Exploring the depths of the strategic India-Iran port deal
Chabahar, situated in Iran's Sistan and Baluchestan Province on the southern coast, is strategically important due to its location, connecting the country to the Indian Ocean and being a rival to Pakistan's Gwadar Port, which is supported by China.
Source: aajtak
India's stake in Chabahar presents a counterbalance to the China-Pakistan duo. The proximity of Chabahar to Gwadar — approximately 400 kilometers by road and merely 100 kilometers by sea — adds to the strategic significance.
The US acknowledges India's savvy management of its bilateral relations with Iran but reminds that American sanctions on Iran remain.
By investing in Chabahar, India gains a secure trade route bypassing Pakistan, extending to Iran, Afghanistan, and further to Central Asia and Europe through the International North-South Transport Corridor.
