New Delhi : India has signed an agreement with Iran to operate the Chabahar port as it has the potential to emerge as a connectivity hub for Afghanistan and Central Asian countries, the External Affairs Ministry said on Friday.

On Chabahar port, External Affairs Ministry spokesperson Randhir Jaiswal said that on May 13, we signed a long-term agreement to operate the Chabahar port. Our minister was there. This is a major achievement. We see Chabahar as India's commitment towards realising the potential of the place as a connectivity hub for Afghanistan and landlocked Central Asian countries. 

Chabahar Port is an India-Iran flagship project, which serves as an important transit port for trade with Afghanistan. India has been a key partner in the development and operation of Chabahar Port.

Randhir Jaiswal said that the US recognizes the importance of Chabahar Port for ongoing humanitarian assistance to Afghanistan and providing economic options to the country. The State Department spokesperson said that the US has recently appreciated the wider relevance of the Chabahar project, especially in the context of humanitarian supplies to Afghanistan.

Earlier on Tuesday, the US, without naming India, warned that anyone considering business deals with Tehran should be aware of the potential risk of sanctions. US State Department Principal Deputy Spokesperson Vedant Patel said in a press briefing,

"All I would say is ... U.S. sanctions on Iran remain in place and we will continue to enforce them. "Any entity, any individual that is considering a business deal with Iran needs to be aware of the potential risk, the potential exposure to sanctions.

Meanwhile, India's Foreign Ministry said,

The US has shown an understanding of the importance of operating Chabahar port to continue humanitarian supplies to Afghanistan and to provide economic options to Afghanistan. Emphasizing the importance of Chabahar port, he said,

Through the port, we are able to bring a lot of supplies to Afghanistan and provide a lot of humanitarian assistance. The United States also understands the importance of the Chabahar port as far as the region and its connectivity is concerned, particularly its critical role for the landlocked countries in the region.

The Indian company, India Ports Global Limited has been operating the port on an interim lease since 2018. Now, we have entered into a long-term agreement which is required for port operations. Since then, we have provided humanitarian aid including 85,000 metric tonnes of wheat, 200 metric tonnes of pulses and 40,000 litres of the pesticide Malathion to Afghanistan through this port.

As India and Iran signed a long-term contract for operating the Shahid-Beheshti Port Terminal in the presence of Indian and Iranian ministers, it is pertinent to note that the Chabahar Port Agreement between the two countries will not only enhance regional connectivity but also facilitate trade especially between India, Iran and Afghanistan.

A long-term bilateral contract on Chabahar Port operations was signed between Indian Ports Global Limited (IPGL) of India and Ports and Maritime Organization (PMO) of Iran, enabling the operation of Shahid-Behesti in the Chabahar Port Development Project for 10 years. 

The agreement aims to enhance regional connectivity and facilitate trade, particularly between India, Iran and Afghanistan, said an official release from the office of Union Minister Sarbananda Sonowal. India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of IPGL, facilitated the first consignment of exports from Afghanistan to India in 2019.