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India Approves $150 Million Credit Line to Iran for Chabahar Port
Mar 03, 2016

Government of India's approved a $150 million credit line for the development of Iran's Chabahar Port. The port of Chabahar in southeast Iran is key to India's efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.

  • India and Iran agreed in 2003 to develop Chabahar on the Gulf of Oman, near Iran's border with Pakistan, but the venture has moved slowly because of the sanctions over Iran's atomic programme. Western nations recently lifted some of those sanctions.

  • Under the agreement signed last year between the two countries, India will equip and operate two berths in the first phase of development at Chabahar Port and extend a credit line of $150 million. 

  • Both berths will commence operations within 18 months of the signing of a final contract.

  • India will make a capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a ten year lease following which the ownership of equipment will be transferred to Iran. 

  • Along with Chabahar port, India wants to develop a port-based urea fertiliser plant for which natural gas would be locally sourced.

India Approves $150 Million Credit Line to Iran for Chabahar Port

The port is key to India’s efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan. It has become essential for India since China assumed control over Pakistan’s Gwadar Port in February 2013.


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