Iran unveils worth of strategic port MoU with India

Business Materials 7 May 2015 16:12 (UTC +04:00)

Baku, Azerbaijan, May 7

By Umid Niayesh - Trend:

Iran confirmed signing a memorandum of understanding with India to develop a strategic port in the Sea of Oman.

According to a report released by Iran Ministry of Roads and Urban Development's official website May 7, the MoU to develop Chabahar port's two phases is worth $195 million.

India would invest $85 million and $110 million in the first and second phases respectively.

The report quoted Iran's Minister of Roads and Urban Development Abbas Akhoundi saying India is keen to put a further $110 million into Chabahar port's other phases.

About 65 percent of the Chabahr port has been developed. Khatam al-Anbia, a subsidiary of Iran's Revolutionary Guard Corps (IRGC) is leading the project and some $350 million is needed to develop the first phase of the port.

Iran says the National Development Fund will finance the remained needed investment in Chabahar's first phase.

Chabahar port is located in Sistan-Balochistan Province on Iran's southeastern coast and is of great strategic use to India, which will get a sea-land access route to Afghanistan bypassing Pakistan.

India intends to lease two berths at Chabahar for 10 years.

India's Road Transport And Highways Minister Nitin Gadkari and his Iranian counterpart Akhoundi signed the MoU on May 6.

Edited by CN