India, Iran set to ink long-term deal on Chabahar port

India and Iran are expected to sign a long-term deal for the development of Iran’s Chabahar Port by September before the Global Maritime India Summit 2023 scheduled in New Delhi in October, two people familiar with the matter said.

- Shashank Mattoo & Subhash Narayan

After years of negotiations, Delhi and Tehran are expected to sign a multi-year deal, allowing India to develop the Shahid Beheshti Terminal in the Chabahar port. In 2016, India Ports Global Ltd (IPGL) and Arya Banader of Iran had signed a contract to develop the port.

Spokespeople for India’s ministries of external affairs, ports, shipping, and waterways, and the Iranian embassy in New Delhi did not respond to a query.

However, an official of the ports ministry said the contours of the long-term deal will be finalized next month, and an agreement will likely be signed in September.

Currently, India and Iran sign one-year contract extensions for developing and running the terminal at Chabahar Port. However, India has been urging Tehran to commit to a longer-term pact, providing certainty for investment and development plans for the port designed by India. A long-term contract for 10 years may also provide for automatic renewal.