India, Iran drop arbitration clause for Chabahar port

India and Iran have agreed not to seek commercial foreign arbitration for disputes between users and operators at Chabahar Port, paving the way for the two sides to sign a longterm deal for the development of the strategic port, two persons aware of the development said

- Subhash Narayan & Rituraj Baruah

They said a team from the ministry of port and shipping is expected to visit Iran in September to try and reach an agreement over the rules of engagement and mode of arbitration. This would be followed up with the two countries reaching a formal agreement for long-term operation of the port located in Southeast Iran, with an unhindered sea route to India's West coast.