BAKU, Azerbaijan, December 24. India has invested $85 million in equipment and supplies at the Chabahar port, located in the Sistan and Baluchestan Province in southeastern Iran, said Ali Akbar Safai, Iran's Deputy Minister of Roads and Urban Development and Head of the Ports and Maritime Organization, Trend reports.
Following the signing ceremony of agreements with the private sector for the development of Iranian ports, Safai explained that, in total, India plans to invest $120 million in the development of Chabahar port. He also mentioned that India is currently utilizing phase one of the port.
Highlighting the strategic importance of Chabahar, Safai emphasized the role of the port within the North-South International Transport Corridor, which passes through Iran.
To note, a memorandum of understanding was signed between Iran, India, and Afghanistan in 2016. According to the memorandum, Chabahar port is used for the exchange of goods between India and Afghanistan. Under the agreement, India’s Ports Global Limited (IPGL), the operator of Chabahar port, had previously committed to investing $85 million in the port. As part of the memorandum, India has installed two 140-ton cranes at Chabahar port, valued at $7.5 million in recent years. These cranes increased the port's cargo handling capacity to 20 million tons per year.
Additionally, a ten-year agreement was signed between Iran and India to further develop Chabahar port on May 13, 2024. Under the agreement, India will allocate $120 million for providing equipment and $250 million for the construction of port infrastructure.