India and Iran have finalized a long-term contract for the development of Chabahar port after more than two decades of slow-moving negotiations. Three sources knowing the matter have confirmed this.

After the general elections of India, a high-level delegation led by the Shipping Minister will visit Iran. This visit will take place in the second half of 2024 and during this time the contract related to Chabahar Port will be signed. Located in south-eastern Iran, this port has been built with the help of India, with the development of which maximum benefits can be availed.

The Iranian Embassy in New Delhi has given its confirmation regarding this contract between the two countries. Speaking to Mint, Mahdi Esfandiari, a spokesperson for the Iranian Embassy, ​​said, 'This contract is in the final stages. We are waiting for the Indian delegation to visit Iran. This is a very good and beneficial agreement for both the parties.

Work on Chabahar has been going on since 2003

India started cooperation on Iran's Chabahar port in 2003 when Iranian President Mohammad Khatami visited India. During this time, India had agreed to help Iran in the development of ports as well as infrastructure.

India is interested in this port because the port provides a strategic gateway for Indian goods to reach the markets of Afghanistan and Central Asia.

However, the development work of the port has progressed very slowly. In 2013, India promised $100 million for the development of Chabahar. In 2016, India, Iran, and Afghanistan signed an agreement for the development of an international trade corridor, with Chabahar included as a central transit point.

India also agreed to invest $85 million in the development of the Shahid Behesti Terminal in Chabahar. 

Chabahar port work affected due to US sanctions on Iran

However, the reimposition of Western sanctions on Iran over its nuclear program severely affected port operations. So far, India has been able to provide only six mobile harbor cranes worth $25 million to develop the port.

India and Iran are now set to sign a long-term contract after the general elections to accelerate the development of the port. The contract will be valid for 10 years. Earlier, both the parties had been signing only one-year contracts.