India inks pact with Iran to run operations at Chabahar port

New Delhi, May 13:  India has signed a historic contract with Iran, solidifying a pivotal agreement to oversee operations at the Chabahar port for the next decade.

The port, situated on Iran's southeastern coast along the Gulf of Oman, stands as a crucial gateway that promises to unfurl a new trade route linking South Asia with Central Asia via Tehran.

In a tweet, Randhir Jaiswal, the spokesperson for the Ministry of External Affairs (MEA), hailed the occasion as the dawn of a fresh chapter in bilateral relations.

He stated, “Scripting a new chapter in bilateral partnership Minister @shipmin_india and @maoyush @sarbandsonwal witnessed the signing of the long-term contract for the operations of the Shahid Beheshti Port in Chabahar, between India Ports Global Limited and Ports and Maritime Organization of Iran. The contract will give a boost to regional connectivity and India’s linkages with Afghanistan, Central Asia, and Eurasia.”

Minister of Port and Shipping and Waterways, Sarbananda Sonowal echoed the sentiment, remarking, “With the signature of this contract, we have laid the foundation of India’s long-term involvement at Chabahar.” He emphasised the multiplier effect this agreement would have on the port's viability, highlighting Chabahar's strategic significance as the closest Iranian port to India.

The genesis of this agreement traces back to 2016, during Prime Minister Narendra Modi's official visit to Iran. At that juncture, agreements were inked, envisioning the development of the strategic Chabahar port.

Subsequently, a tripartite pact was signed between India, Iran, and Afghanistan, marking the commencement of efforts to cultivate the terminal at Shahid Beheshti within Chabahar Port.

This long-term pact supersedes the preceding arrangement, which solely covered operations at the Shahid Beheshti terminal and required annual renewals. This also marks India's inaugural foray into managing a port beyond its shores, signifying a significant stride in regional connectivity and India's blue economy growth and expansion in the sea having strategic implications.

Chabahar not only serves as a conduit to Afghanistan, Central Asia, and the larger Eurasian expanse but also serves to counterbalance Pakistan's Gwadar port and China's Belt and Road Initiative. Furthermore, it presents an alternative to the Suez Canal, which has lately faced disruptions due to regional conflicts.

External Affairs Minister S Jaishankar highlighted the importance of expedited implementation, particularly amidst uncertainties in the Middle East. He underscored the pact's potential to catalyse larger investments and deeper linkages emanating from the seaport.

Minister Sarbananda Sonowal hailed the agreement as a watershed moment for India in global trade and geopolitics, underlining its potential to reshape regional dynamics. He signed the agreement in Iran. The significance of this endeavour and the visit of the minister to Iran amid a bustling election season underscores its magnitude - signing long-term regional Connectivity of India with theChabahar Port Agreement and Financial Support Offer, heralding a new era, all while fostering economic prosperity and regional cooperation.