Indian firm to develop Iran's Chabahar Port.

An Indian joint venture company will develop the Chabahar Port in Iran with an investment of $85.21 million (around Rs. 520 crore) and operate the port for 10 years through a leasing agreement. The pact can be renewed with mutual agreement at the end of the 10th year. The JV was given the go-ahead by the Union Cabinet recently.

Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT) can have an Iranian partner and/or an Indian private sector partner to form the vehicle to execute the project.

The port would give India a sea-land access route to Afghanistan through Iran's eastern borders. This will be the framework for inter-Governmental memorandum of understanding, to be finalised by India and Iran.

The Cabinet also approved an annual revenue expenditure of $22.95 million to support the JV.

Specifically, the JV will lease two fully constructed berths in Chabahar port's phase-I project for 10 years, which could be renewed by 'mutual agreement', said an official release.

The JV will invest $85.21 million for equipping the two berths within 12 months as a container terminal and the second as a multi-purpose cargo terminal.

India will transfer ownership of the equipment to Iran's Port and Maritime Organisation (P&MO) without any payment at the end of the 10th year. The Indian side can form the JV with one or more Iranian companies, subject to the approval of the P&MO.

HBL