India hopes to open Chabahar port in Iran by 2018
What's the story
Keeping hopes up for India's plans to develop the Chabahar port in Iran, Union Minister Nitin Gadkari conveyed that it would be operational by 2018.
The port will help India reap benefits from the oil-rich Persian Gulf. Its location close to Pakistan's unstable Balochistan region further helps India.
Gadkari, who is currently visiting Tehran was also hopeful about getting approvals from the Iranian government.
About
Why is Chabahar important for India?
India's access to landlocked countries including Afghanistan and Central Asian countries is blocked due to prevailing hostilities with Pakistan. Chabahar hence is a key link to ensure connectivity.
Its location in the Strait of Hormuz further enables India to keep check of China and Pakistan's activities in Gwadar which is 100 km away from Chahbahar, giving India an immense strategic advantage.
Details
What are India's plans for Chabahar?
Although India has been pushing for the project for almost a decade, there has been little progress on the ground due to bureaucratic delays and tough negotiations.
After sanctions were lifted in 2016, India promised $500 million to develop the port.
The Modi government is working on developing fertilizer plants, roads and railways around the port, which could amount up to $15 billion.
Development
What has been done so far?
Aiming to boost economic and trade ties, the Cabinet recently cleared proposals relating to the development of Chabahar and further sanctioned $150 million credit from Exim Bank.
It also allowed the Shipping Ministry to form a company in Iran to oversee the development activities.
Gadkari further conveyed that India had finalized tenders worth Rs. 380 crore for equipment out of Rs. 600 crore.
Information
Port to be handed over to Iran in 10 years
As per the Memorandum of Understanding signed between India and Iran last year, India can equip and operate two berths within Chabahar Phase-I. Ownership of the equipment will be transferred to Iran at the end of 10 years, unless an extension is agreed upon.