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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
India's Participation in the Development of Chahbahar Port in Iran
Oct 29, 2014

The Union government gave its approval for the framework inter-Governmental Memorandum of Understanding (MoU) that is to be finalised by the Government of India with the Government of Iran.  This inter-Governmental MoU will have the following main elements:

  • An Indian Joint Venture (JV) company will lease two fully constructed berths in Chahbahar port’s Phase-I project for a period of ten years, which could be renewed by mutual agreement.

  • The JV company will invest US $85.21 million for equipping the two berths within 12 months as a container terminal and the second as a multi-purpose cargo terminal.

  • The Indian side will transfer ownership of the equipment to be provided through the investment to Iran’s Port and Maritime Organisation (P&MO) without any payment at the end of the tenth year.

  • The Indian side can form a JV that could include one or more Iranian companies subject to the approval of the P&MO.

  • The Indian and Iranian sides could enter into subsequent negotiations for participation in the construction, equipping and operating of terminals in Phase-II on BOT basis, subject to the Indian side’s satisfactory performance in Phase-I.

  • The Iranian side will make efforts to provide Free Trade Zone conditions and facilities at the port.


The government also approved to constitute a JV or other appropriate Special Purpose Vehicle (SPV) comprising the Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT) and if required a local Iranian partner and/or an Indian private sector partner to serve as the vehicle for India’s participation in the development of the port.  Approval was also given for incurring annual revenue expenditure of US$ 22.95 million to support operational activities of the Indian JV.

India’s presence at the Chahbahar port would give it a sea-land access route into Afghanistan through Iran’s eastern borders. Iran`s Chahbahar port located in the Sistan-Baluchistan Province on Iran’s south-eastern coast is a port of great strategic utility for India. It lies outside the Persian Gulf and is easily accessed from India`s western coast.

From Chahbahar port using the existing Iranian road network, one can link up to Zaranj in Afghanistan which is at a distance of 883 km from the port and then using the Zaranj-Delaram road constructed by India in 2009, one can access Afghanistan’s garland highway thereby establishing road access to four of the major cities of Afghanistan; Herat, Kandahar, Kabul and Mazar-e-Sharif.


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