India Clinches Deal on Leasing Iranian Port
NEW DELHI (Dispatches) – India and Iran on Saturday signed agreements including Tehran leasing to New Delhi operational control of part of the Iranian east coast port of Chabahar for 18 months.
The $85 million project creates a transit route between India, Iran and Afghanistan. India is trying to develop Chabahar as a way to gain access to the markets of central Asia as well as Afghanistan.
But progress is slow because of concern that President Donald Trump’s administration in Washington may eventually scrap the Iran nuclear deal.
A leasing agreement giving operational control to India of Shahid Beheshti port - phase one of the Chabahar port - was signed in the presence of Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani.
Later, addressing a joint press conference with the Iranian president, Modi said both countries wanted to expand bilateral ties and cooperation in economic development.
"We will support the construction of the Chabahar-Zahedan rail link so that Chabahar gateway’s potential could be fully utilized,” Modi said.
"We want to expand connectivity, cooperation in the energy sector and the centuries-old bilateral relationship.”
Other agreements included a double taxation avoidance treaty, extradition, and cooperation in the farm sector. Another agreement envisaged the pooling of technical, scientific and human resources between the two countries.
Rouhani, who arrived in the southern city of Hyderabad on Thursday, later addressed industrialists.
Both sides deliberated extensively on intensifying cooperation in the oil sector and agreed to move beyond traditional "buyer-seller" relationship and develop it into a long-term strategic partnership.
During the talks, it was agreed to continue and increase the pace of negotiation for reaching appropriate results in energy cooperation, including on Farzad-B gas field. Officials in the Indian Ministry of External Affairs said both the sides were for reaching a conclusion on the Farzad-B gas field issue soon.
Farzad-B was discovered by ONGC Videsh in the Farsi block about 10 years ago. An Indian company has proposed drilling wells in Persian Gulf to produce gas, transport it to onshore via sub-sea pipeline and build a plant to liquefy the gas under a $11 billion development plan but Iran says the terms are not profitable.
"The Iranian side welcomed the investment of Indian side in setting up plants in sectors such as fertilizers, petrochemicals and metallurgy in Chabahar free trade zone on terms mutually beneficial to the concerned parties," a statement said.
With a view to fully utilize the potential of Chabahar Port and its connectivity to Afghanistan and Central Asia, India conveyed its readiness to support the development of Chabahar- Zahedan rail line, it said.
The $85 million project creates a transit route between India, Iran and Afghanistan. India is trying to develop Chabahar as a way to gain access to the markets of central Asia as well as Afghanistan.
But progress is slow because of concern that President Donald Trump’s administration in Washington may eventually scrap the Iran nuclear deal.
A leasing agreement giving operational control to India of Shahid Beheshti port - phase one of the Chabahar port - was signed in the presence of Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani.
Later, addressing a joint press conference with the Iranian president, Modi said both countries wanted to expand bilateral ties and cooperation in economic development.
"We will support the construction of the Chabahar-Zahedan rail link so that Chabahar gateway’s potential could be fully utilized,” Modi said.
"We want to expand connectivity, cooperation in the energy sector and the centuries-old bilateral relationship.”
Other agreements included a double taxation avoidance treaty, extradition, and cooperation in the farm sector. Another agreement envisaged the pooling of technical, scientific and human resources between the two countries.
Rouhani, who arrived in the southern city of Hyderabad on Thursday, later addressed industrialists.
Both sides deliberated extensively on intensifying cooperation in the oil sector and agreed to move beyond traditional "buyer-seller" relationship and develop it into a long-term strategic partnership.
During the talks, it was agreed to continue and increase the pace of negotiation for reaching appropriate results in energy cooperation, including on Farzad-B gas field. Officials in the Indian Ministry of External Affairs said both the sides were for reaching a conclusion on the Farzad-B gas field issue soon.
Farzad-B was discovered by ONGC Videsh in the Farsi block about 10 years ago. An Indian company has proposed drilling wells in Persian Gulf to produce gas, transport it to onshore via sub-sea pipeline and build a plant to liquefy the gas under a $11 billion development plan but Iran says the terms are not profitable.
"The Iranian side welcomed the investment of Indian side in setting up plants in sectors such as fertilizers, petrochemicals and metallurgy in Chabahar free trade zone on terms mutually beneficial to the concerned parties," a statement said.
With a view to fully utilize the potential of Chabahar Port and its connectivity to Afghanistan and Central Asia, India conveyed its readiness to support the development of Chabahar- Zahedan rail line, it said.