According to reports, India plans to sign a deal with Iran to control the strategic Chabahar port for the next 10 years. This is the first time that India has taken over the management of an overseas port. The agreement for the port was signed in 2016 during Prime Minister Narendra Modi's visit to Iran.
Shipping Minister Sarbananda Sonowal will visit Iran to sign the agreement on Monday, the Economic Times reported, citing sources. The visit assumes special significance as the Union minister is traveling in the midst of a busy schedule for the 2024 Lok Sabha elections.
India, which financed the expansion of the port, will operate it as per the agreement.
Importance of Chabahar Port
India aims to make Chabahar Port a transportation hub to CIS (Commonwealth of Independent States) countries under the International North-South Transport Corridor (INSTC). INSTC is India's vision to save on the movement of cargo between India and Central Asia, and Chabahar Port will serve as the commercial transportation center for the region.
The new agreement, which replaces the original agreement, will reportedly be valid for 10 years and be automatically extended. The original agreement covered only the Shahid Beheshti terminal at Chabahar port and was renewed annually. In 2016, an agreement was signed between Iran, India, and Afghanistan to develop the Shahid Behesti terminal.
Chabahar Port has played an important role in negotiations between India and Iran in the past, and expanding India's role in the port was also discussed.
Additionally, the port is also expected to serve Indian traders and investors in Central Asia.
Chabahar Port Connection
Sonowal previously said the port connects the rich Central Asian region with South Asian markets, playing an important role in trade, economic cooperation and linking the peoples of the two regions. Transport and transport possibilities in the Central Asian region will be improved along with logistics networks.
The minister said that Chabahar Port will facilitate joint initiatives to create regional and international transport corridors. It also aims to develop universally recognized international norms, good governance, the rule of law and equality at ports.