Official terms Indian investment in Chabahar, effective for regional trade boom

Chabahar, Feb 3, IRNA - Indian investment in the first phase of development project of Chabahar port has been effective for regional trade boom, Director-General of Sistan-Baluchestan Province Ports and Maritime Organization Behrooz Aghaei said on Wednesday.

Aghaei announced delivery of $8.5 million worth Indian equipment for the development of port activities at Iran’s Chabahar port.

"Arrival of first shipment of Indian equipment in Chabahar port, marks the activation of the contract between the Ports and Maritime Organization (PMO) and the Indian side," he said.

According to Aghaei, the mentioned equipment is going to be installed in Shahid Beheshti port, as part of a contract between the two sides, based on which India is going to invest $85 million in this port.

Aghaei noted that the Indian side is going to operate in Shahid Beheshti port in the form of a build–operate–transfer (BOT) contract and this is the first time that such a contract is implemented in one of the country's ports with 100 percent foreign investment.

Chabahar is located in the East-West transit path and is of importance with regard to transit and trans-shipment and has turned out to be a vital area for sending Indian products to Afghanistan and Central Asia.

The Indian government has allocated about $14m budget for developing Chabahar Port in 2020-2021 which had a two-fold rise compared to the last year.

Growth in the allocated budget indicates India's commitment to developing the port and New Delhi determination for changing Chabahar Port into a connecting point.

Due to its strategic position and its access to international high seas, Chabahar is of importance with regard to Iran's trade relations with other regional countries.

Chabahar, as Iran’s only ocean port, plays an important role in developing trade, exports, and imports and fishing as well.

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