India signed a long-term agreement to operate the strategic Chabahar port with Iran as it seeks to expand trade in Central Asia.
India’s ports and shipping ministry signed the deal in Tehran on May 13. India also offered to provide a loan of $250 million to develop a terminal at the port, India’s embassy in Iran said.
The agreement would be valid for 10 years. The Chabahar Port located on Iran's south-western coast has easy access to India's west coast.
The Chabahar port serves as a gateway for Indian goods to reach markets in Afghanistan and Central Asia through the International North-South Transport Corridor, which is being developed with Iran and Russia and bypasses Pakistan.
The agreement replaces an initial 2016 pact, which covered India’s operations at Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis.
