New Delhi: The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the framework inter-Governmental Memorandum of Understanding (MoU) that is to be finalised by the Government of India with the Government of Iran. This inter-Governmental MoU will have the following main elements:-
The Cabinet also approved to constitute a JV or other appropriate Special Purpose Vehicle (SPV) comprising the Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT) and if required a local Iranian partner and/or an Indian private sector partner to serve as the vehicle for India's participation in the development of the port. Approval was also given for incurring annual revenue expenditure of US$ 22.95 million to support operational activities of the Indian JV.
India's presence at the Chahbahar port would give it a sea-land access route into Afghanistan through Iran's eastern borders.
Background
Iran's Chahbahar port located in the Sistan-Baluchistan Province on Iran's south-eastern coast is a port of great strategic utility for India. It lies outside the Persian Gulf and is easily accessed from India's western coast.
From Chahbahar port using the existing Iranian road network, one can link up to Zaranj in Afghanistan which is at a distance of 883 km from the port and then using the Zaranj-Delaram road constructed by India in 2009, one can access Afghanistan's garland highway thereby establishing road access to four of the major cities of Afghanistan; Herat, Kandahar, Kabul and Mazar-e-Sharif.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.