NEW DELHI: Iran and India have finalised talks over Chabahar port on Saturday.
both countries have signed an agreement which allows India to take operational control of Iranian east coast Chabahar port for 18 months.
The signing has its geographical significance as the Chabahar port is just 90 km away from Pakistan’s Gwadar port.
The $85 million project provides a transit route between India, Iran and Afghanistan, bypassing Pakistan. The port will also pave India’s way to the markets of central Asia.
The leasing agreement was signed by the Iranian President Hassan Rouhani and Indian Prime Minister Narendra Modi in New Delhi.
As per the agreement, India will have the operational control of Shahid Beheshti port – phase one of the Chabahar port for 18 months.
Other agreements included a double taxation avoidance treaty, extradition, and cooperation in the farm sector.
The signing was followed by a joint press conference the premiers of the two neighbouring countries.
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.”
Rouhani is in India on a three-day official visit. During the visit, he will also address Indian industrialists.