Under the Iran deal, India would provide six cranes and other equipment worth $85 million to equip and operate the Shahid Beheshti terminal. « I expect to travel to Iran in April or May for the inauguration of full operations, » Mansukh Mandaviya, India`s minister of Port and Navigation, told Reuters. The document notes that China is « trying to control the pulse of regional trade by making substantial investments in pakistan`s port of Gwadar, » and says India « is now positioned against its powerful competitor by investing in the port. » « We want to connect with the world. (The) Agreement. can change the course of the region`s history, » Prime Minister Narendra Modi said after the agreement was signed in the presence of Afghan President Ashraf Ghani and Iranian President Hassan Rouhani. 11. January 2018 – Iran agrees to buy $600 million worth of locomotives and freight cars from India. The wagons are intended for transport on the Chabahar-Zahedan railway. July 14, 2015 – Nuclear deal with Iran. Iran and the P5+1 countries reach an agreement on Iran`s nuclear program. The deal states that sanctions will be lifted once Iran complies with the terms of the deal.

« The distance between Kandla (in the state of Gujarat, in western India) and the port of Chabahar is less than the distance between Delhi and Mumbai, and this agreement allows us to quickly transport goods first to Iran and then to Afghanistan and Russia via a new rail and road link, » he told PTI news agency. Since 90% of Iran`s population is concentrated in the west of the country, the eastern part is relatively less developed. Iran intends to change this with the development around the port of Chabahar, with a free trade zone and road and rail links between Chabahar and Central Asia. His plan is to use the port of Chabahar as a gateway to Central Asia and maintain the port of Bandar Abbas, which currently handles 85 percent of Iran`s maritime trade, as a hub for trade with Russia and Europe. [15] Iran reportedly completed the pipeline on its side of the border, but during Iranian President Hassan Rouhani`s visit to Pakistan in March 2016, Pakistan did not commit to completing the line. In 2009, India distanced itself from the project, he said. From the port of Chabahar, Iran`s existing road network can be connected to Zaranj in Afghanistan. This road can then be connected to the 218 km long Zaranj-Delaram road, built in 2009 by India for 680 billion euros.

Rupees was built, and finally with the Afghan Garland Highway. « The bilateral agreement to develop Chabahar Port and related infrastructure, as well as the availability of about $500 million from India, is an important milestone, » Modi said. Rouhani said: « Chabahar can become a very great symbol of cooperation between Iran and India. » CRS reports are prepared by experts and are not considered an official report of the U.S. Congress. In January 2018, Iran and India signed a $2 billion cooperation agreement in the railway sector. Part of the deal concerns a $600 million letter of intent for Iran to buy locomotives and freight cars from India. [76] But U.S. sanctions on Iran have slowed development at the port, and Indian officials now expect a thaw in relations between Washington and Tehran under President Joe Biden to move forward with nearly $500 million in investment. India`s Essar Oil and MRPL refineries approved $1.2 billion of the $6.4 billion in taxes owed to Iran on crude oil imports and agreed to pay 1.5 percent interest on the rest as a sign of goodwill.

Mandaviya said the port has already started operations on a limited scale and the potential for growth is obvious. India paid Iran the $6.5 billion it owed for the oil it bought in 2012-2016. India has not imported Iranian oil since May 2019. India also plans to build a roughly 600-kilometer-long railway line between the port of Chabahar and Zahedan, the provincial capital of Sistan-Baluchistan in Iran near the Afghan border, for $1.6 billion to facilitate the movement of goods to Afghanistan. The bilateral agreement between India and Iran gives India the right to develop two berths at Chabahar Port, as agreed in 2015, and allows them to be operated for 10 years by India Ports Global, a joint venture between jawaharlal Nehru Port Trust and Kandla Port Trust, in partnership with Iran`s Aria Banader. [48] India Ports Global has guaranteed the handling of 30,000 TEUs by the third year of operation and aims to eventually process 250,000 TEUs. [49] February 18, 2013 – Pakistan awards the contract to operate the port of Gwadar to China Overseas Port Holding Company, a Chinese state-owned entity. The port of Chabahar has the ability to change trade in South and Central Asia.

The proposed land trade routes connected to the port would facilitate better access to the Afghan and Central Asian markets. The impact of this improved connectivity has a huge impact on Afghanistan in particular, although the consequences of the Taliban`s rapid takeover of the country may jeopardize these plans. At present, Afghanistan carries out most of its trade through routes through Pakistan; The port of Chabahar could provide the country with another commercial outcome. In turn, Chabahar has the potential to generate massive economic growth in Afghanistan, as this would make it easier for goods from other countries to enter the country and boost its export potential. A statement from the Ministry of Foreign Affairs said: « Participants stressed the important role that the port of Chabahar plays in humanitarian crises. He noted the increase in transit traffic between Central and South Asia via Shahid Behesti Terminal, Chabahar Port and discussed the further development of the transport corridor. Chabahar port handled 123 vessels and 1.8 million tons of bulk and general cargo from February 2019 to January 2021, he said. .