As India and Iran set to sign an agreement to construct Chabahar port, Minister for Road Transport and Highways and Shipping Nitin Gadkari on Sunday said it is the beginning of a new era in the Indo-Iran relationships, which was started by former prime minister Atal Bihari Vajpayee and Prime Minister Narendra Modi is opening the gate for it.
“We should perceive the agreement as an engine of growth, and I believe it is the beginning of a new era in the Indo-Iran relationship, which was started by Vajpayeeji and Modiji is opening the gate for it,” said Gadkari, who is accompanying Prime Minister Modi to Iran on a two-day official visit following an invitation by Iranian President Dr. Hassan Rouhani.
“When Vajpayeeji was the prime minister of India, using his strategic vision, he had entered into an agreement with Iran to construct a port at Chabahar, but unfortunately for years the work remained hanging fire,” Gadkari said.
“Under the leadership of Prime Minister Narendra Modi an agreement will be signed tomorrow (Monday), which is a great achievement for both the countries,” he added.
Elaborating on some of the benefits, Gadkari said, “Gas and electricity are cheaper in Iran, while in our country there is a shortage of gas. Naturally, steel and aluminium industries could be developed here owing to cheaper gas and power.”
“We can also make petroleum products here. Apart from this, there is a great demand of urea in our country, which is useful for the farmers. The government is taking up the gas price with the Iranian government, and we hope that Indian fertiliser companies could talk about producing urea here. It is a win-win situation for both the countries.” Beside this, Gadkari said, “India, Afghanistan and Iran are entering into an agreement for strategic transport development, which is also a historical development.”
“If we have to go Afghanistan, then we have to go via Pakistan, but today with the opening of a new gate, we can expand our trade from Afghanistan to Russia to Europe. This will be beneficial to both India and Iran,” he added.
“The distance between Kandla port in Kutch District of Gujarat and Chabahar, seaport in Chah Bahar in southeastern Iran, is lesser than the distance between Delhi and Mumbai, which will also increase our port business,” said Gadkari.
“Besides, we had a company with Iran, which is closed now; we will also contemplate about that. And, in time to come, there will be beginning of a new era in the field of trade and industry, which will be very useful for both India and Iran. Thus, in the economies of both the countries this agreement will be very important,” he added.
During a media briefing in New Delhi on Saturday, Joint Secretary (PAI) Gopal Baglay said: Right now, we have very specific progress. What we are talking about is India’s investment and participation in the first phase of Chabahar port, which involves development of two terminals and five berths, which have multi-cargo capacity.
“India will bring in an investment of upwards of $200 million in this regard, out of which EXIM Bank is extending a credit line of $150 million. So, right now we are talking about signing the commercial contract, which is the document, which is the culmination of the process set in the motion by signing off the MoU last year,” he said.
“The bilateral contract on development and operation by India of Phase-I of the Chabahar port will be signed between Indian Ports Global Private Ltd and Arya Banadar of Iran. Documents on EXIM Bank’s line of credit to Iran, including for the port will be signed as well,” added Baglay.
