New Delhi gets operational control of Chabahar: India, Iran sign pact during Rouhani visit on leasing port

NEW DELHI: India and Iran on Saturday signed agreements including Tehran leasing to New Delhi operational control of part of the Iranian east coast port of Chabahar for 18 months.

The $85 million project, just 90 km from the China-sponsored Gwadar port in Pakistan, creates a transit route between India, Iran and Afghanistan, bypassing Pakistan.

India is trying to develop Chabahar as a way to gain access to the markets of central Asia as well as Afghanistan.

But progress is slow because of concern that President Donald Trump´s administration in Washington may eventually scrap the Iran nuclear deal.

A leasing agreement giving operational control to India of Shahid Beheshti port - phase one of the Chabahar port - was signed in the presence of Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani.

Later, addressing a joint press conference with the Iranian president, Modi said both countries wanted to expand bilateral ties and cooperation in economic development.

"We will support the construction of the Chabahar-Zahedan rail link so that Chabahar gateway´s potential could be fully utilised," Modi said.

"We want to expand connectivity, cooperation in the energy sector and the centuries-old bilateral relationship."

Other agreements included a double taxation avoidance treaty, extradition, and cooperation in the farm sector.