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India secures 10-year contract to operate Iran’s Chabahar Port

New Delhi: India inked a decade-long agreement on Monday to manage the strategically significant Iranian port of Chabahar, a move that will bolster its trade ties with Central Asia. The port, located on the Gulf of Oman, was proposed for development by New Delhi in 2003. It will serve as a conduit for Indian goods to reach Afghanistan and Central Asia via the International North-South Transport Corridor, circumventing Pakistan.

The port’s development had been hindered by US sanctions on Iran due to its alleged nuclear programme. The enduring contract was signed between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organisation, as per an official announcement. IPGL will contribute approximately $120 million, with an additional $250 million being procured as debt.

The agreement was formalised in a ceremony in Tehran, attended by Sarbananda Sonowal, India’s Minister for Ports, Shipping and Waterways, and Mehrdad Bazrpash, Iran’s Minister for Transport and Urban Development. This contract supersedes a 2016 agreement that pertained to India’s operations at the Shahid Beheshti terminal in Chabahar port and was renewed annually.

In the previous year, India utilised the Chabahar port to dispatch 20,000 tonnes of wheat aid to Afghanistan. In 2021, it was used to deliver eco-friendly pesticides to Iran. This marks the first instance of India assuming control of a foreign port, which is expected to significantly enhance trade among India, Iran, and Afghanistan a steely resolve as evident by his tireless activism against alleged corruption in the government headed by Lalu Prasad.

Modi often took pride in having been one of the litigants in the petition on which the Patna High Court ordered that the infamous fodder scam be investigated by the CBI, which later submitted a charge-sheet forcing Prasad to step down in 1997, but only to replace himself with wife Rabri Devi.

Modi earned his spurs as a doughty leader of the opposition in the assembly, a post he held till 2004 when he got elected to the Lok Sabha from Bhagalpur.

A year later, however, the RJD-Congress combine was routed in the state assembly polls and Modi was back in Bihar, as the deputy to JD (U) de facto leader Nitish Kumar, who became the chief minister.

It was during this crucial juncture that the party also entrusted him with the state president’s post and Modi handled the twin responsibilities with a dexterity that won him many admirers.

Modi occupied the deputy CM’s post until Kumar’s first break up with BJP in 2013, and was back four years later when the JD (U) supremo realigned with the NDA.

The rapport between Nitish Kumar and Sushil Modi has been the stuff of legend in Bihar politics. The JD (U) leader has often expressed regret over the sidelining of his trusted former deputy, who was stripped of the post after the 2020 assembly polls and shifted to Delhi with a Rajya Sabha berth.

Hardliners in the BJP blamed his “soft” stance towards Kumar for the BJP’s inability to gain the upper hand “despite diminution in the chief minister’s popularity”.

However, few doubt his role in scripting the state’s economic turnaround, having held the crucial finance portfolio for more than a decade.

Hemant Soren

Soren has challenged the May 3 order of the Jharkhand High Court dismissing his petition against his arrest by the Enforcement Directorate (ED). He has also sought interim bail for campaigning in the Lok Sabha elections till the court delivers its verdict on his plea against his arrest.

In his appeal filed through advocate Praghya Baghel, Soren said the high court had erred in dismissing his plea on May 3.

Currently in judicial custody at the Birsa Munda Central Jail in Ranchi, Soren faces allegations of generating proceeds of crime through manipulation of official records to acquire land illegally.

The Supreme Court had recently granted interim bail to Arvind Kejriwal in a similar money laundering case, allowing him to campaign but with restrictions on official duties.

The Lok Sabha elections are ongoing in Jharkhand, with polling in four seats today and the remaining 10 seats scheduled for the next phases on May 20, 25, and June 1.

Chabahar Port

as efforts to tap into Central Asia’s potential continue, bypassing Pakistan.

The Ministry of External Affairs (MEA) has earmarked Rs 100 crore for the Chabahar Port for the fiscal year 2024-25, highlighting India’s emphasis on connectivity projects with Iran. The India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of IPGL, facilitated the first shipment of exports from Afghanistan to India in 2019.

Operations persisted through short-term contracts while discussions on the long-term agreement accelerated following Sonowal’s visit to Chabahar in August 2022. As part of the agreement, India will procure various equipment at Chabahar Port, paving the way for increased trade and investment opportunities that could potentially stimulate India’s economic growth.

At the signing ceremony, Sonowal stated, “This contract lays the groundwork for India’s long-term involvement at Chabahar.”

He further added that the contract signing would enhance the viability and visibility of the Chabahar port.

Chabahar, according to Sonowal, is not only the nearest Iranian port to India but also an excellent port from a nautical perspective.

Situated in Iran’s energy-rich southern coast in the Sistan-Baluchistan province, the Chabahar port is being developed by India and Iran to augment connectivity and trade relations. India has been advocating for the Chabahar port project to enhance regional trade, particularly for its connectivity to Afghanistan.

India and Iran have projected the port as a crucial hub for the INSTC project. The INSTC is a 7,200-km-long multi-modal transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe.

India has been developing a portion of the Chabahar Port, with discussions on the port’s development dating back to 2003 during the visit of Iranian President Muhammad Khatami to India.

In 2013, India pledged to invest $100 million towards the development of the Chabahar Port.Chabahar is an oceanic port. By leveraging the Chabahar Port, India aims to bypass Pakistan and establish direct access to Afghanistan and beyond, into Central Asia.

The closest Indian port to Chabahar is the Kandla port in Gujarat, located 550 Nautical Miles away, while the distance between Chabahar and Mumbai is 786 Nautical Miles.

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