India has allocated a $250 million credit line to support infrastructure projects in southeastern Iran. Additionally, under the Chabahar port agreement, India will invest $120 million specifically for the Shahid Beheshti Terminal. Despite facing challenges such as geopolitical tensions and economic sanctions, the Chabahar Port project remains a cornerstone of India’s strategic interests in the region.
Iran’s Ambassador to India, Iraj Elahi, noted the growing interest from Indian investors, emphasizing the pivotal role of such investments for regional economic growth. The Chabahar Port project, especially the Shahid Beheshti Terminal, is central to this vision, enhancing connectivity between South Asia, the Persian Gulf, Afghanistan, Central Asia, and Europe.
Discussions on Chabahar Port’s strategic importance date back to 2002, with significant agreements between Iranian and Indian leaders materializing by January 2003. The port’s potential as a regional gateway was underscored by then-Iranian President Syed Mohammad Khatami and Indian Prime Minister Atal Bihari Vajpayee.
Since December 2018, India Ports Global Limited (IPGL) has managed Chabahar Port. The port has handled over 90,000 TEUs of container traffic and 8.4 million metric tonnes of bulk and general cargo. It has also played a significant humanitarian role during the Covid-19 pandemic, facilitating aid deliveries to Afghanistan and Iran.
In May 2024, India and Iran signed a 10-year agreement for India to operate the cargo and container terminals at Chabahar Port. This aligns with India’s strategic and economic goals, enhancing trade connectivity with Central Asia and beyond. The Chabahar Port project remains vital for regional stability and economic growth.
Source: Financial Express
