• “They need to be aware of the potential risk,” US warns India on Chabahar Pact with Iran

    National
    “They need to be aware of the potential risk,” US warns India on Chabahar Pact with Iran

    Deputy spokesperson Vedant Patel emphasised the need for caution, highlighting the potential risks associated with business dealings with Iran amidst ongoing sanctions


    Digital Desk: India sealed a significant deal to oversee operations at Iran's Chabahar port, aimed at bolstering trade links with Central Asia while skirting Pakistan. The move celebrated at a ceremony in Tehran attended by Union Minister Sarbananda Sonowal, drew a stern response from the US, which reiterated its sanctions on Iran. 

     

    Deputy spokesperson Vedant Patel emphasised the need for caution, highlighting the potential risks associated with business dealings with Iran amidst ongoing sanctions.  He said, as quoted by the NDTV, "anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions." When a reporter asked if there's any exemption for this, Mr Patel responded, "No."

     

    The agreement, inked between Indian Ports Global Limited and Iran's Port and Maritime Organisation, involves significant investments totalling $120 million, with additional funds secured through debt. This pact replaces a previous arrangement from 2016 and marks India's first-ever management role at an overseas port, poised to significantly enhance trade dynamics among India, Iran, and Afghanistan.

     

    The Chabahar port, key to the International North-South Transport Corridor project, underscores a longstanding collaboration dating back to discussions in 2003. India's commitment to the port's development is supported by subsequent investments and agreements. This landmark 10-year lease agreement now materialises, signalling a new phase of strategic engagement between the two nations.

     

    According to NDTV World, “The Kandla port in Gujarat is the closest to Chabahar port at 550 nautical miles. The distance between Chabahar and Mumbai is 786 nautical miles." With its strategic location and connectivity potential, the Chabahar port holds promise as a vital line for trade spanning from India to Europe.


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