India may engage with US for pursuing port deal with Iran; Gadkari to visit Iran shortly

[INDIAPOSITIVE]

The long-drawn India-Iran deal on the Chabahar port could soon take shape through a memorandum of understanding (MoU) between the two nations. Union Shipping Minister Nitin Gadkari is set to visit Iran in the next few days, where he could formalise the deal by signing the inter-governmental MoU.

India is also likely to engage in discussion with the US to secure a waiver of sanctions on activities at Chabahar. Talks about the proposed speed and manner in which the US government plans to free up the sanctions might also be on the cards, so that India does not run the risk of attracting punitive sanctions.

Gadkari's visit comes after Commerce Secretary Rajeev Kher visited Iran earlier this month. Coming in the wake of the potential Iran-P5+1 deal, after which the current financial sanctions on Iran can be partially or completely lifted, the deal assumes strategic significance for the access it provides India to Afghanistan. The P5+1 group refers to the five permanent members of the United Nations Security Council, along with Germany.

Once the deal is signed, the Indian government will invest $85 million for the purchase of equipment needed to set up and run a container terminal and a multi-purpose berth at the Chabahar port. Further, an annual expenditure of $22.95 million will be incurred by the government for operating the port. The Union government had in October 2014 approved formation of joint venture by the Kandla Port Trust and the Jawaharlal Nehru Port Trust for the development of Chabahar port.

Iran was India's second-largest supplier of crude oil up until 2006 but it dropped to number seven by the end of 2013-14. Although India has reduced its oil imports from Iran, it has continued to maintain good relations with the West Asian nation, which has been reeling under US and EU sanctions for over three years now.

Located on the confluence of the Indian Ocean and the Sea of Oman in southeastern Iran, Chabahar is India's first foreign port project. While the port is outside the Persian Gulf, it is strategically significant, providing access to Afghanistan, Central Asia and beyond. Originally floated in 2003 by the Atal Bihari Vajpayee-led government, the project has been consistently delayed due to various reasons.

Despite issues of viability, India wants to take up the Chabahar port as a strategic project, aimed at satisfying the immediate security interests of establishing a sea-land route into Afghanistan. New Delhi has plans to build a road-railroad network from Chabahar to Milak in Iran in order to link it with the India-built 223-km Zaranj-Delaram road in Afghanistan so that aid could be pushed to Kabul and beyond.

Chinese President Xi Jinping's two-day visit to Pakistan this week has further highlighted China's influence in infrastructure development growing in the neighbourhood. Pakistan's Gwadar Port - around 70 km east of Chabahar - was developed by the China Harbour Engineering Company Ltd (CHECL), with the Port of Singapore Authority being the minority partner. CHECL had displayed an interest in developing the Chabahar port as well.

India may engage with US for pursuing port deal with Iran; Gadkari to visit Iran shortly | Business Standard News

 

[WAR-rior]

If it happens, thats bad newz for Pakistan. Not coz US is back in the region or China is stronger than US, etc. Its coz once again Pakistan will become the playground for Superpowers this time USA against the Pakistani port. with US and India+Russia investing together. Gwadar is gonna face some real challenge by Chabahar.

 

[salmanACCA]

if the entire central asia and afghanistan trade goes through chabahar it will still be not be able to surpass the trade that will be done by china through Gawadar

 

[WAR-rior]

if the entire central asia and afghanistan trade goes through chabahar it will still be not be able to surpass the trade that will be done by china through Gawadar

I hope u have some concrete data to support that.

 

[immortalsoul]

if the entire central asia and afghanistan trade goes through chabahar it will still be not be able to surpass the trade that will be done by china through Gawadar

news involving india always start with "maybe""will".dont take it seriously.

 

[Echo_419]

The long-drawn India-Iran deal on the Chabahar port could soon take shape through a memorandum of understanding (MoU) between the two nations. Union Shipping Minister Nitin Gadkari is set to visit Iran in the next few days, where he could formalise the deal by signing the inter-governmental MoU.

India is also likely to engage in discussion with the US to secure a waiver of sanctions on activities at Chabahar. Talks about the proposed speed and manner in which the US government plans to free up the sanctions might also be on the cards, so that India does not run the risk of attracting punitive sanctions.

Gadkari's visit comes after Commerce Secretary Rajeev Kher visited Iran earlier this month. Coming in the wake of the potential Iran-P5+1 deal, after which the current financial sanctions on Iran can be partially or completely lifted, the deal assumes strategic significance for the access it provides India to Afghanistan. The P5+1 group refers to the five permanent members of the United Nations Security Council, along with Germany.

Once the deal is signed, the Indian government will invest $85 million for the purchase of equipment needed to set up and run a container terminal and a multi-purpose berth at the Chabahar port. Further, an annual expenditure of $22.95 million will be incurred by the government for operating the port. The Union government had in October 2014 approved formation of joint venture by the Kandla Port Trust and the Jawaharlal Nehru Port Trust for the development of Chabahar port.

Iran was India's second-largest supplier of crude oil up until 2006 but it dropped to number seven by the end of 2013-14. Although India has reduced its oil imports from Iran, it has continued to maintain good relations with the West Asian nation, which has been reeling under US and EU sanctions for over three years now.

Located on the confluence of the Indian Ocean and the Sea of Oman in southeastern Iran, Chabahar is India's first foreign port project. While the port is outside the Persian Gulf, it is strategically significant, providing access to Afghanistan, Central Asia and beyond. Originally floated in 2003 by the Atal Bihari Vajpayee-led government, the project has been consistently delayed due to various reasons.

Despite issues of viability, India wants to take up the Chabahar port as a strategic project, aimed at satisfying the immediate security interests of establishing a sea-land route into Afghanistan. New Delhi has plans to build a road-railroad network from Chabahar to Milak in Iran in order to link it with the India-built 223-km Zaranj-Delaram road in Afghanistan so that aid could be pushed to Kabul and beyond.

Chinese President Xi Jinping's two-day visit to Pakistan this week has further highlighted China's influence in infrastructure development growing in the neighbourhood. Pakistan's Gwadar Port - around 70 km east of Chabahar - was developed by the China Harbour Engineering Company Ltd (CHECL), with the Port of Singapore Authority being the minority partner. CHECL had displayed an interest in developing the Chabahar port as well.

India may engage with US for pursuing port deal with Iran; Gadkari to visit Iran shortly | Business Standard News

Great news

 

[Techy]

India to sign port deal with Iran, ignoring US warning against haste

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran.A speed boat passes by oil docks at the port of Kalantari in the city of Chabahar, 300km (186 miles) east of the Strait of...

Reuters/Raheb Homavandi/Files

* India to build port in Iran to get more trade with CIS and Gulf

* India has already built a 220 km road to port from Afghanistan
* Port would cut transport costs/time for Indian goods by a third (Adds comment from U.S. State Department official)

(Reuters) - India will push ahead this week with plans to build a port in southeast Iran, two sources said, with Prime Minister Narendra Modi keen to develop trade ties with Central Asia and prepared to fend off U.S. pressure not to rush into any deals with Iran.

India and Iran agreed in 2003 to develop a port at Chabahar on the Gulf of Oman, near Iran's border with Pakistan, but the venture has made little progress due to Western sanctions on Iran.

Now, spurred on by Chinese President Xi Jinping's signing of $46 billion of energy and infrastructure deals with Pakistan, Modi wants to swiftly sign trade agreements with Iran and other Gulf countries.

"Shipping Minister Nitin Gadkari will travel on a day-long tour to Iran to sign a memorandum of understanding for development of Chabahar port," a Shipping Ministry source with direct knowledge of the matter told Reuters. The deal will be signed on Wednesday, he said.

Encouraged by the prospect of a deal between world powers and Tehran by June 30 on Iran's nuclear programme, after which sanctions could be eased, India recently sent a delegation to Iran to scout for trade, energy and infrastructure deals.

The United States cautioned India and others last week against strengthening ties with Iran ahead of a final agreement. But Indian officials said New Delhi could not ignore its national interest and noted a report that a U.S. energy delegation was visiting Iran.

"We don't want to miss this opportunity and will move as expeditiously as possible," the Shipping Ministry source said. India's cabinet approved the plan to develop Chabahar port last year.

An official of the U.S. State Department said the United States had not seen details of the memorandum of understanding, but cautioned that investment in the port was "potentially sanctionable under U.S. law."

The official said the best chance of a comprehensive nuclear deal with Iran depended on maintaining existing international pressure. He said the United States continued "to have ongoing, frank conversations with India on this issue.”

Iran has also proposed a free-trade agreement with India, a Trade Ministry source said. Rupee-denominated trade with Iran, started in 2012 because of complications arising from sanctions, has almost doubled Indian exports to Tehran in the past two years to $4 billion.

Now Indian exporters want to build on that, using a free-trade zone being developed near Chabahar to export more to the Commonwealth of Independent States, made up of former Soviet Republics, said Mumbai-based Khalid Khan, regional head of the Federation of Indian Export Organisations.

"It will be Modi's gift to Iran and Indian exporters," he said of the port project.

BYPASSING PAKISTAN

Building the port would benefit India by cutting transport costs and freight time to Central Asia and the Gulf by about a third.

The port is also central to India's efforts to circumvent Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.

India has already spent about $100 million to construct a 220-km (140-mile) road in western Afghanistan to link up with Chabahar port.

Last week Modi assured Afghan President Ashraf Ghani of India's commitment to building the port.

Chabahar is just along the coast from Gwadar port in Pakistan that is being developed with China's help, said Robin Mills, head of consulting at Dubai-based Manaar Energy. "So there is a strategic element for the Indian side."

Iran could rapidly develop as a destination for global investors if Western sanctions are lifted, and Modi is keen to fast-track the port project before Tehran has time to rethink.

At the weekend, Iranian media reported that Iran had turned down an Indian request seeking multi-billion-dollar development rights for the Farzad B gas field.

"I think India should try to push ahead and take advantage wherever they can before Iran changes its mind," Mills said.

(Additional reporting by David Brunnstrom in Washington; Editing by Alan Raybould and Leslie Adler)

India to sign port deal with Iran, ignoring U.S. warning against haste| Reuters

India is planning a rail link to Chabahar from Afghanistan as well.