India-Iran Relations / Chabahar Port deal signed between India and Iran, know how beneficial it is?

India-Iran Relations: On May 13, both the countries signed a new deal for India to take over the management of Shahid Beheshti Port Terminal located in Chabahar, Iran, which will be valid for the next 10 years. This will help India to increase trade with Central Asia. Chabahar port is located in Sistan-Baluchistan province on the southern coast of Iran. India and Iran are jointly developing this port. Let us understand how beneficial this deal is for India and how it will enable India to keep a close eye on China and Pakistan.

India will invest so many crores

The contract was signed by India Ports Global Limited (IPGL) and Iran's Ports and Maritime Organization in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal. According to an official statement, IPGL will invest around $120 million, while an amount of $250 million will be raised as loan. This is the first time that India is taking over the management of a port located abroad.

This is the government's plan

On this occasion, Sonowal said that with the signing of this contract, we have laid the foundation of India's long-term involvement in Chabahar. This contract will see manifold expansion in the capacity of Chabahar port. The INSTC project is a 7,200 km long multi-layered transport project to transport goods between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. Underlining India's importance on connectivity projects with Iran, the Ministry of External Affairs (MEA) had allocated Rs 100 crore for Chabahar Port for 2024-25.

What will be the benefit to India?

The port is seen as India's key connectivity link to Afghanistan, Central Asia and the larger Eurasian region, which will help it maintain an eye on Pakistan's Gwadar port as well as China's Belt and Road Initiative. There is a plan to connect Chabahar to the International North South Transport Corridor (INSTC) which connects India to Russia via Iran. Let us tell you that this port will enable India to reach Afghanistan and Central Asia. There will be no need of Pakistan for this now.