India has approved the plan to take part in the development of Iran’s Chahbahar port, a move seen as an attempt to bypass Pakistan and give India a sea-land access route into Afghanistan through Iran’s eastern borders.
India plans to float a company which will lease two fully constructed berths in Chahbahar port’s Phase-I project for a period of ten years. The company will invest USD 85.21 million for equipping the two berths within 12 months as a container terminal and the second as a multi-purpose cargo terminal.
The Indian side will transfer ownership of the equipment to be provided through the investment to Iran’s port and Maritime Organisation (P&MO) without any payment at the end of the tenth year.
If the collaboration on Phase-I is considered satisfactory, the Indian and Iranian sides could enter into subsequent negotiations for participation in the construction, equipping and operating of terminals in Phase-II.
Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT), and if required a local Iranian partner, will serve as the vehicle for India’s participation in the development of the port. Approval was also given for incurring annual revenue expenditure of USD 22.95 million to support operational activities of the Indian JV.
Iran’s Chahbahar port located in the Sistan-Baluchistan Province on Iran’s south-eastern coast is considered to be a port of great strategic utility for India. It lies outside the Persian Gulf and is easily accessed from India’s western coast.
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Press Release; Image: East Golden Gate