India has formally taken over operations at Iran’s strategic Chabahar Port. According to the government of India, India Ports Global Chabahar Free Zone (IPGCFZ) a special purpose vehicle (SPV) of Indian Ports Global (IPGL) in Iran has taken over interim operation of the Chabahar Port with effect from December 24.
Representatives from India, Iran, and Afghanistan met in Tehran to formally hand over control to IPGL.
Accoding to IRNA news agency, IPGL had been granted the lease for “a temporary period of 18 months and a ten-year period afterwards.” IPGL’s management would include “loading and unloading, supplying equipment and marketing.”
The U.S. State Department in November exempted the Chabahar Port project from sanctions in recognition of its importance to landlocked Afghanistan.
A memorandum of understanding (MoU) between Indian Railway Construction Company Limited (IRCON) and Construction, Development of Transport and Infrastructure Company (CDTIC) of Iran for construction of Chabahar-Zahedan rail project was signed during PM’s visit to Iran on 23 May 2016.
As per the Joint Statement released by Ministry of External Affairs (MEA) dated 17 February 2018 during Iranian President’s visit to India (15-17 February 2018), India conveyed its readiness to support the development of Chabahar- Zahedan Rail line.