Iran takes a strategic move, decides to hand over Chabahar Port to India within a month

New Delhi, September 7: Increasing mobility will ultimately lead to boost the economy of the country. On sidelines of the Mobility Summit organized by NITI Aaayog, Iran will hand over the strategic Chabahar Port to India within a month for proper maintenance and operation of the port.

Iranian Minister of Roads and Urban Development Abbas Akhoundi, on Friday, said that as per an interim pact, signed between the two countries Iran has taken the decision to hand over the port to India. Speaking to the media, Iranian Minister Akhoundi said: "Now, we are ready just to hand over the port (Chabahar) to the Indian company just to operate this in an interim agreement that already we had with Indian part for one and a half year."

 

The Chabahar port is easily accessible from India's western coast and is increasingly seen as a counter to Pakistan's Gwadar Port located at distance of around 80 km from Chabahar. Iranian Minister Akhoundi after a meeting with his Indian counterpart Road Transport and Highways Minister Nitin Gadkari said, "We have already moved one step forward. We should introduce a banking channel to India, which we already did it and fortunately has been formally accepted by the Indian side".

He said India has also introduced a banking channel, which has been approved by Iran's Central Bank. The first phase of the Chabahar port was inaugurated in December 2017 by Iranian President Hassan Rouhani, opening a new strategic route connecting Iran, India, and Afghanistan bypassing Pakistan.

The Chabahar port is being considered as a gateway to golden opportunities for trade by India, Iran, and Afghanistan with central Asian countries, besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi.

Both India and Iran signed an agreement worth USD 85 million to develop the port in south-eastern Iran. The agreement, which was signed in the presence of Iranian President Hassan Rouhani and Prime Minister Narendra Modi in New Delhi, gives operational control of Shahid Beheshti port (phase one of the Chabahar port) to India.