India signs deal with Iran to run Chabahar port
India and Iran signed a 10-year contract on Monday for the management of Chabahar port, putting the seal on what’s envisaged as a gamechanger in regional connectivity, rivalling China’s Belt and Road Initiative and being an alternative to Gwadar port in Pakistan.
Shipping minister Sarbananda Sonowal travelled to Tehran for the signing of the new 10-year contract between India Ports Global Ltd (IPGL) and Ports & Maritime Organisation of Iran (PMO). ET was the first to report on the new Chabahar contract in its May 13 edition.
Under the contract, IPGL will equip and operate the port for the duration of the contract. At the end of the 10-year period, both sides will extend their cooperation in Chabahar. IPGL will invest about $120 million in equipping the port, officials said. India has also offered a rupee credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure, they said.
That Sonowal took time out to travel to Iran during an intense poll campaign reflects the importance of the pact, which has been in the works for some years now.
“With the signature of this contract, we have laid the foundations of India’s long-term involvement at Chabahar,” said a post on X by the Indian Embassy in Tehran.
Sonowal wrote on X: “Handed over the letter from EAM @DrSJaishankar to Iran’s FM @Amirabdolahian offering a INR credit window equivalent to USD 250 million for Chabahar-related development. Reiterated India’s commitment to cooperate with in developing the
