Iran, India sign major economic MoU

Business Materials 29 December 2015 15:27 (UTC +04:00)

Tehran, Iran, December 29

By Mehdi Sepahvand - Trend:

A comprehensive economic MoU was signed by Iranian Minister of Economy Ali Tayyebnia and Indian Foreign Minister Sushma Swaraj, IRNA news agency reported December 29.

"This agreement is the result of the work of three workgroups of trade, energy, and infrastructure," Tayyebnia said.

He added that the Indian side is interested in Iran's Chabahar Port and stretching a railway to connect India to Central Asia.

Chabahar port city is located 700 kilometers south of Zahedan in Sistan and Baluchestan Province.

In May, India's Shipping Minister Nitin Gadkari and Iran's Minister of Transportation Abbas Ahmad Akhoundi signed an $85 million deal for India to lease two existing berths at the port and use them as multi-purpose cargo terminals.

The MoU also provides for a line of credit for Iran in petrochemicals, oil, and steel, he said.

According to Tayyebnia, insurance and banking are other features of the MoU, where Iranian banks of Pasargad and Parsian will open branches in Mumbai and one Indian bank will open a branch in Iran.