India is set to move ahead with its investment in the Iranian port of Chabahar. The cash surplus Kandla and Jawaharlal Nehru ports in western India will be assigned with the task of developing and operating the multi-purpose terminals.The southern Iranian port will also provide India with a link to Afghanistan and the central Asian republics.
Both ports will come together to form a Special Purpose Vehicle under a revenue-sharing agreement with the Port and Maritime Organization of Iran. The agreement would be for a minimum of 20 years. Analysts hope that with a new government in power in New Delhi, this project will be given the final go-ahead as India has been very keen to develop the port for over a decade. Sources say India's External Affairs ministry which has the final say since it has been piloting the project for years, is expected to make a onetime financial grant along with an annual grant. This investment will make the project financially viable .The estimated project cost is around $100 million. Trade analysts anticipate the initial business to be slow. However, it is expected to pick up and become highly profitable in the coming years once the project gets underway.

By IRNA

 

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