The Government on Friday committed to help Iran in developing the Chabahar Port, which is expected to boost trade ties between the two nations.
This came after Iranian Foreign Minister Javad Zarif sought India’s cooperation to work with Tehran for development of the strategic port. He is the first key Minister of Iran to come to India after the historic nuclear pact between Tehran with Western countries in July which will lead to lifting of sanctions. Zarif said that Iran considered India its “strategic partner”.
In a tweet, Prime Minister Narendra Modi said, “We had an extensive and fruitful discussion on India-Iran relations.”
Modi conveyed India’s commitment to work with Iran for development of the Chabahar Port that would have far-reaching benefit, not only for the people of India and Iran, but also for Afghanistan and entire Central Asia, a PMO statement said.
located on Iran’s south-eastern coast, the port would provide India a sea-land access route to Afghanistan bypassing Pakistan. India has pledged to invest about $85 million in developing the Chabahar Port.
Zarif also met Minister of External Affairs Sushma Swaraj and Minister of Shipping Nitin Gadkari seeking their help in expediting the development of the strategic port.
Swaraj, took the opportunity to raise the issue of nine Indian sailors detained in Iran and requested him for waiver of the $2.9 million fine imposed on them and sought their early release.
After her meeting with Zarif, Swaraj tweeted, “I requested him for waiver of $2.9 million fine imposed on them and for their early release.”
“I have advised our Ambassador-designate to Iran Saurabh Kumar to follow this up on priority and secure their release at the earliest.”
These Indians, who were part of a shipping crew, have been in a jail in Iran for two years on charges of smuggling oil.
Zarif who also met Gadkari on Friday urged India to develop an integrated Chabahar Port which has a Special Economic Zone (SEZ). The Ministers of the two countries discussed the need for early conclusion of the India-Iran-Afghanistan Transit Agreement, which will enable the potential of Chabahar Port to be realised.
Gadkari said that once the port is developed it will provide a big boost to Indian industries as “the distance between Chabahar to Mundra, Kandla is less than Delhi and Mumbai.”
A MoU was signed between India and Iran for development and operation of two terminals at Chabahar Port on May 6, 2015 and discussions are on for concluding the agreement between the organisations of the two Governments.
Gadkari said that the Ministries of Shipping, Finance, Commerce and Industry will together deliberate on the issue, including how to take ahead the port’s development in phases.
“The port which is located at the convergence of the Indian Ocean and the Sea of Oman in south-eastern Iran, will provide India access to Afghanistan, Turkestan to Russia (Central Asia and beyond) by bypassing Pakistan,” said Gadkari.
“This will give a major boost to our import and export as Chabahar port has an SEZ,” he said.
Currently, Pakistan has restricted the movement of Indian goods to land-locked Afghanistan, hampering trade relations between the two countries. The Afghanistan-Pakistan Trade and Transit Agreement allows trucks from Afghanistan to carry cargo to Pakistani ports and the Wagah Border, but the trucks have to go back empty. This increases the cost of goods.