With an aim to enhance regional connectivity and facilitate trade, particularly between India, Iran and Afghanistan, India has signed a 10-year contract to operate the strategic Iranian port of Chabahar. This will help to expand trade with Central Asia. The Chabahar port on the Gulf of Oman – which New Delhi had proposed to develop way back in 2003 - will provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor, bypassing Pakistan.
US sanctions on Iran over its suspected nuclear programme had slowed the development of the port. The long-term agreement was signed by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran. IPGL will invest about $120 million while another $250 million will be raised as debt.
This is the first time India will take over the management of an overseas port that will also have a multiplier effect on trade among India, Iran and Afghanistan as efforts continue to directly tap the potential in Central Asia, bypassing neighbouring Pakistan.
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