CHABAHAR PORT OPERATION
PACT - INTERNATIONAL RELATIONS
News: India, Iran sign Chabahar port
operation pact
What's in the news?
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India and Iran recently signed a 10-year contract
to operate the Chabahar port.
India-Iran Chabahar Port
Agreement:
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India and Iran have signed a 10-year contract for the operation of the Chabahar port.
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This agreement comes eight years after the initial
establishment of the general cooperation
framework.
Signing Parties:
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The contract was signed between Indian Ports Global
Ltd. (IPGL) and Iran’s Port and Maritime Organisation (PMO).
Investment and Credit
Line:
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IPGL plans to invest approximately $120 million in
equipping the port and its infrastructure.
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Additionally, India has offered a credit window worth $250 million for
Chabahar-related infrastructure projects.
Historical Backdrop:
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A memorandum of understanding for Chabahar port
development was signed in May 2015, with the contract executed in May 2016
during Prime Minister Narendra Modi’s visit to Iran.
Significance:
The agreement has been termed as a historic milestone for the maritime sector.
1. Foster Trade:
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It is expected to foster trade, marine cooperation,
and transshipment, while boosting trilateral trade between India, Iran, and
Afghanistan.
2. Regional
Connectivity:
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Chabahar port serves as a vital trade artery
connecting India with Afghanistan and Central Asian countries.
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Its development is seen as crucial for enhancing
regional connectivity and promoting economic development in the region.
3. Strategic Importance:
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It is located in Iran’s Sistan-Baluchistan
province.
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Chabahar is a deep-water port with significant
strategic value.
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It offers India an alternative route to access
Afghanistan and Central Asia, bypassing Pakistan.
4. India's Soft Power:
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The agreement signifies India’s commitment to
further invest in Chabahar port, enhancing its efficiency and capacity.
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India aims to utilize the port for humanitarian aid
shipments, demonstrating its commitment to regional development beyond
commercial interests.
Go back to basics:
Chabahar Port:
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Chabahar Port is a seaport in Chabahar city located
in southeastern Iran on the Gulf of Oman.
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It serves as Iran’s
only oceanic port.
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The Chabahar Agreement was signed in June 2015 and
approved by Iran’s Guardian Council in November 2016.
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Chabahar is being seen as a gateway for trade by India, Iran and Afghanistan with Central Asian
countries.
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There are two distinct ports in the Chabahar
project, Shahid Beheshti and Shahid
Kalantari.
○ India’s investment is restricted to the Shahid Beheshti port.