Although the original Chabahar port agreement between India and Iran was signed in 2003, U.S. sanctions have consistently slowed down progress on the major connectivity project from India through Iran to Afghanistan and Central Asia. File
| Photo Credit: Getty Images/iStockphotos

Iranian Foreign Minister Abbas Araghchi. File
| Photo Credit: AP

U.S. President Donald Trump’s proposal to move Palestinians out of Gaza is “inhumane and unacceptable” said Iranian Foreign Minister Abbas Araghchi, adding that he discussed the need for all countries to speak in a united voice against it, with External Affairs Minister S. Jaishankar on the sidelines of the Indian Ocean conference in Muscat on Sunday. Mr. Araghchi said that India and the U.S. are in close consultation” over Mr. Trump’s order to “rescind or modify” a sanctions waiver given to the Chabahar port development project, which was also discussed during the talks. Later, Mr. Araghchi met a senior Houthi envoy in the Omani capital and raised the issue of the Indian nurse on death row Nimisha Priya, he told The Hindu in an interview. 

The Shahid Beheshti Port at Chabahar connects Mumbai to Eurasia via the International North South Transport Corridor (INSTC), reducing transport costs and time, leading to a 43% increase in vessel traffic and a 34% rise in container traffic for the financial year 2023-24, according to the Economic Survey released on Friday.

Similarly, Sittwe Port in Myanmar built as part of the Kaladan multi-modal transport project, offers an “alternative route to Northeastern States, reducing transport costs between Kolkata and Mizoram,” the survey noted referring to international linkages in the maritime sector.

Also Read | India, Iran sign 10-year contract for Chabahar port operation

“India is enhancing waterway connectivity to the Northeast by developing waterways in Bangladesh and funding 80% of the ₹305 crore project. India is also investing ₹1,010 crore to improve the Brahmaputra and Barak rivers and the Indo-Bangladesh Protocol route,” the Economic Survey said on the efforts to boost inland waterways also involving neighbouring countries.

In May 2024, eight years after concluding the general framework of cooperation on Chabahar Port, India and Iran signed a 10-year Long Term Agreement for its operation. Under the agreement between Indian Ports Global Limited (IPGL) of India and the Port and Maritime Organisation (PMO) of Iran, IPGL will invest approximately $120 million in equipping the port and India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

Another maritime route, the Chennai-Vladivostok eastern maritime corridor has also become operational and is carrying oil, food and machines, as reported by The Hindu earlier.

Also Read | Amid raging fighting in Myanmar, 100th shipment from India reaches Sittwe port

Gratified to see the Ministry of Ports, Shipping and Waterways trailblazing with a remarkable 76% capital expenditure up to November 2024 for the financial year 2024-25 as per Economic Survey 2024-25, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said on the Survey. As a result of the transformational initiatives, the Minister was happy about the exceptional rate of capacity enhancement in ports from 3 Million Metric Tonne Per Annum (MMTPA) during April to November (FY24) to 21 MTPA during the same period this financial year as per the Economic Survey 2024-25, he stated.

By 2047, India targets a port handling capacity of 10,000 million metric tonne per annum, leveraging strategic trade routes through initiatives like the India-Middle East Economic Corridor (IMEEC) and the INSTC, Mr. Sonowal had said in November.

The survey listed out key initiatives as part of this which include, Harit Nauka guidelines launched in January 2024 which aim to turn 1,000 inland vessels over the next 10 years; cargo promotion scheme to incentivise cargo owners to switch from rail and road to inland waterways; river cruise tourism which saw 82,587 passengers on day cruises by October 2024 and a five-fold increase in night cruise passengers to 11,431 in FY24 compared to FY19; Jal Marg Vikas project on National Waterway-1 which enhances cargo transport on the Ganga-Bhagirathi-Hooghly river system, achieving 65% physical progress with a revised cost of ₹5,061.15 crore and Jal Marg Vikas project-II which includes the construction of community jetties and navigation improvements with 49 out of 60 approved community jetties already commissioned.

Explained | Reinvigorating the Chabahar port 

“Port capacity improved significantly in FY25, leading to improvements in operational efficiency and reduction in average container turnaround time. On waterway transport connectivity, the Sagarmala programme aims to harness India’s coastline and waterways fully, improving logistics efficiency. Progress under the programme highlights the highest project completion rates in port modernisation and port-led industrialisation,” the survey said on the overall shipping sector. This is followed by advancements in port connectivity, coastal community development, coastal shipping, and inland water transport.

In this regard, the survey noted that the Union government approved 98 Public-Private Partnership (PPP) projects, including 23 captive projects, worth around ₹69,800 crore, excluding Vadhavan Port Project with a PPP investment of ₹38,000 crore. Currently, 56 projects valued at ₹41,480 crore are operational, increasing port capacity by 550 MTPA , it added.

Dubai, United Arab Emirates:

A high-level meeting between the Afghan Taliban leadership and senior Indian officials was organised is Dubai on Wednesday. From India, foreign secretary Vikram Misri attended the meeting, while from Afghanistan the acting foreign minister of the Taliban government Mawlawi Amir Khan Muttaqi was present.

The meeting assumes significance as New Delhi and Kabul aim to foster ties in order to enhance cooperation between the two countries. Though New Delhi has continued aiding Afghanistan in a limited capacity, much of its bilateral ties has remained dormant since the Taliban’s takeover in 2021.

The agenda for the meeting in Dubai was to boost bilateral ties between the two nations across varied sectors, including humanitarian aid, developmental assistance, trade, commerce, sports, cultural ties, regional security, and projects of national interest, such as the Chabahar Port in Iran, which acts as a key supply route for goods to reach Afghanistan. India and Afghanistan share a land border too, but that has remained cut-off by Pakistan-occupied Kashmir or PoK since 1947.

In the meeting India pledged further humanitarian support to Afghanistan. This included priority assistance in the healthcare sector, supply of medicines, and rehabilitation of refugees. New Delhi has so far dispatched several shipments consisting of 50,000 metric tonnes of wheat, 300 tonnes of medicines, 27 tonnes of earthquake relief aid, 40,000 litres of pesticides, 100 million polio doses, 1.5 million doses of the Covid vaccine, 11,000 units of hygiene kits for the drug de-addiction programme, 500 units of winter clothing and 1.2 tonnes of stationery kits, over the past few years.

The Afghan Minister appreciated and thanked the Indian leadership for continuing to engage and support the people of Afghanistan.

New Delhi has also conveyed to Kabul its readiness to respond to the urgent developmental needs of the Afghan people. “In view of the current need for development activities, it was decided that India would consider engaging in development projects in the near future,” the foreign ministry said.

As talks progressed, Afghanistan’s foreign minister underlined Kabul’s sensitivities to India’s regional security concerns and assured full cooperation in this regard. According to a press statement “It was also agreed to promote the use of Chabahar port for supporting trade and commercial activities, including for the purpose of humanitarian assistance for Afghanistan.”

Mr Misri also underscored the importance India gives to its historic, civilisational, and cultural ties with Afghanistan. “The foreign secretary underlined India’s historic friendship with the Afghan people and the strong people-to-people contacts between the two countries,” the foreign ministry said.

Foreign Secy @VikramMisri met Acting Foreign Minister of Afghanistan Mawlawi Amir Khan Muttaqi in Dubai today.

Both sides discussed ’s ongoing humanitarian assistance to Afghanistan, bilateral issues and security situation in the region. India reiterated its commitment to… pic.twitter.com/a3UyuIqkAG

— Randhir Jaiswal (@MEAIndia) January 8, 2025

Sports, especially cricket, which is loved in both countries also figured in the talks. Both sides agreed to strengthen sporting ties.

Wednesday’s meeting between the two sides comes two days after New Delhi severely condemned the recent Pakistani airstrikes in Afghanistan that killed 46 people, including several women and children. The Pakistani air strikes were carried out on December 24. It invited massive criticism and a stern warning from the Afghan government.

Pakistani air strikes hit Barmal district in Afghanistan’s Paktika province. This was the second time in 2024 that Islamabad directly targeted “civilian areas” in Afghanistan, said the government in Kabul. In March 2024 too, a similar air strike by Pakistan had killed eight people, including three children.

On Monday, India strongly condemned Pakistan over the air strikes, saying it is Islamabad’s “old practice” to blame its neighbours for its failures within the country. “We have noted the media reports on airstrikes on Afghan civilians, including women and children, in which several precious lives have been lost. We unequivocally condemn any attack on innocent civilians. It is an old practice of Pakistan to blame its neighbours for its own internal failures. We have also noted the response of an Afghan spokesperson in this regard,” India’s foreign ministry said.

The Taliban, a predominantly Pashtun tribe which has a large presence across Afghanistan, is an ultra-conservative political and religious hardliner group. It refers to itself by its state name, the Islamic Emirate of Afghanistan. The Taliban which was the government in Afghanistan in 1996, was overthrown by the US-led military coalition in 2001 after Washington launched its ‘war against terror’ focusing on the Al Qaeda and Osama bin Laden. Twenty years later, in 2021, when the US military left Afghanistan abruptly, the Afghan Taliban swept across the nation and regained its political importance by forming the government in the war-torn country.
 

Kazan, Russia:

With the conflict in West Asia escalating significantly after Israel and Iran threatened each other of an endless series of retaliations, Prime Minister Narendra Modi today met Iranian President Masoud Pezeshkian in Russia on the sidelines of the BRICS Summit in the city of Kazan.

India has expressed “deep concern” over the current situation in West Asia and has been calling for “dialogue and diplomacy” to de-escalate the tension in the region also known as the Middle East.

The meeting between the two leaders came amid the year-long Israel-Hamas war and the Israel-Hezbollah conflict, and after Iran’s ballistic missile offensive against Israel led to Tel Aviv vowing a massive retaliation.

INDIA’S ATTEMPT TO BROKER PEACE

Iranian President Masoud Pezeshkian emphasised the need for peace in the region and the “role that New Delhi could play in de-escalating the Middle East crisis,” given its good relations with all the parties involved.

India, which has friendly relations with almost all nations, finds itself in a unique position to be able to mediate between Israel and Iran. Prime Minister Narendra Modi had spoken with Israeli PM Benjamin Netanyahu three weeks ago and has met the Iranian President today.

This is not the only case where New Delhi is trying to broker peace between conflicting sides. PM Modi is also trying to broker a peace deal between Russia and Ukraine which have been at war since 2022. Here too, Prime Minister Modi shares a strong bond with both Vladimir Putin and Ukraine’s Zelenskyy.

PM Modi has visited Russia twice in three months and went to Ukraine as well in this period. He also reportedly sent a “peace plan” for President Putin last month when National Security Adviser Ajit Doval met the Russian President in Moscow.

CHABAHAR PORT AND INST CORRIDOR

During the meeting PM Modi and President Pezeshkian also discussed the India-Iran bilateral ties and ways to strengthen it. Among several key areas of cooperation, the two leaders discussed strategic projects like the Chabahar Port and the International North-South Transport Corridor or INSTC.

After the meeting, PM Modi shared a post on social media platform X, in which he wrote “Had a very good meeting with the President of Iran, Mr. Masoud Pezeshkian. We reviewed the full range of relations between our countries. We also discussed ways to deepen ties in futuristic sectors.” He shared the same post in Persian too.

WHAT MORE WAS DISCUSSED

The Ministry of External Affairs gave more details about what the two leaders discussed, as Foreign Secretary Vikram Misri held a press briefing in which he said that PM Modi and President Pezeshkian held “fruitful discussions”, adding that “Both the leaders discussed the situation in West Asia. Prime Minister Modi expressed his deep concern over the escalating conflict and reiterated India’s call for the protection of civilians and the prevention of harm to civilians. He emphasised the need for dialogue and diplomacy to de-escalate the tensions.”

Mr Misri further said that “President Pezeshkian emphasised the need for peace and harmony in the region and the role that India could play in de-escalating the conflict given its good relations with all the parties involved.”

The foreign secretary went on to say that PM Modi congratulated President Pezeshkian on his electoral victory and also welcomed Iran to the BRICS forum, which it has joined officially from this year.

Speaking about the millenia-old ties between the two countries, the foreign secretary said, “Both leaders emphasised the shared historical and civilisational ties between the two countries and discussed ways to further strengthen cooperation.”

“The discussion focused on key areas of cooperation, particularly the Chabahar Port and the International North-South Transport Corridor (INSTC) which are crucial for enhancing regional connectivity and economic partnership,” Mr Misri said.

REDEVELOPMENT OF AFGHANISTAN

In a statement about the bilateral talks, the Ministry of External Affairs said in its statement that the two leaders noted that “The signing of the long-term contract of Chabahar Port is an important milestone in bilateral relations.”

It further stated that the two leaders reaffirmed its significance for reconstruction and redevelopment of Afghanistan and enhancing trade and economic linkages with Central Asia.”

INDIA’S SUPPORT TO IRAN

President Pezeshkian acknowledged India’s role in Iran’s accession to the Shanghai Cooperation Organisation or SCO and BRICS forums. “They agreed to continue their cooperation in various international forums,” the foreign secretary said at the press briefing.

The foreign ministry said that “Prime Minister Narendra Modi has invited Iranian President Pezeshkian to visit India at an early date,” adding that “President Pezeshkian has accepted the invitation.”

This was their first meeting after Mr Pezeshkian became President of Iran in July. He succeeded President Ebrahim Raisi, who died in a helicopter crash in May.
 

Kazan, Russia:

With the conflict in West Asia escalating significantly after Israel and Iran threatened each other of an endless series of retaliations, Prime Minister Narendra Modi today met Iranian President Masoud Pezeshkian in Russia on the sidelines of the BRICS Summit in the city of Kazan.

India has expressed “deep concern” over the current situation in West Asia and has been calling for “dialogue and diplomacy” to de-escalate the tension in the region also known as the Middle East.

The meeting between the two leaders came amid the year-long Israel-Hamas war and the Israel-Hezbollah conflict, and after Iran’s ballistic missile offensive against Israel led to Tel Aviv vowing a massive retaliation.

INDIA’S ATTEMPT TO BROKER PEACE

Iranian President Masoud Pezeshkian emphasised the need for peace in the region and the “role that New Delhi could play in de-escalating the Middle East crisis,” given its good relations with all the parties involved.

India, which has friendly relations with almost all nations, finds itself in a unique position to be able to mediate between Israel and Iran. Prime Minister Narendra Modi had spoken with Israeli PM Benjamin Netanyahu three weeks ago and has met the Iranian President today.

This is not the only case where New Delhi is trying to broker peace between conflicting sides. PM Modi is also trying to broker a peace deal between Russia and Ukraine which have been at war since 2022. Here too, Prime Minister Modi shares a strong bond with both Vladimir Putin and Ukraine’s Zelenskyy.

PM Modi has visited Russia twice in three months and went to Ukraine as well in this period. He also reportedly sent a “peace plan” for President Putin last month when National Security Adviser Ajit Doval met the Russian President in Moscow.

CHABAHAR PORT AND INST CORRIDOR

During the meeting PM Modi and President Pezeshkian also discussed the India-Iran bilateral ties and ways to strengthen it. Among several key areas of cooperation, the two leaders discussed strategic projects like the Chabahar Port and the International North-South Transport Corridor or INSTC.

After the meeting, PM Modi shared a post on social media platform X, in which he wrote “Had a very good meeting with the President of Iran, Mr. Masoud Pezeshkian. We reviewed the full range of relations between our countries. We also discussed ways to deepen ties in futuristic sectors.” He shared the same post in Persian too.

WHAT MORE WAS DISCUSSED

The Ministry of External Affairs gave more details about what the two leaders discussed, as Foreign Secretary Vikram Misri held a press briefing in which he said that PM Modi and President Pezeshkian held “fruitful discussions”, adding that “Both the leaders discussed the situation in West Asia. Prime Minister Modi expressed his deep concern over the escalating conflict and reiterated India’s call for the protection of civilians and the prevention of harm to civilians. He emphasised the need for dialogue and diplomacy to de-escalate the tensions.”

Mr Misri further said that “President Pezeshkian emphasised the need for peace and harmony in the region and the role that India could play in de-escalating the conflict given its good relations with all the parties involved.”

The foreign secretary went on to say that PM Modi congratulated President Pezeshkian on his electoral victory and also welcomed Iran to the BRICS forum, which it has joined officially from this year.

Speaking about the millenia-old ties between the two countries, the foreign secretary said, “Both leaders emphasised the shared historical and civilisational ties between the two countries and discussed ways to further strengthen cooperation.”

“The discussion focused on key areas of cooperation, particularly the Chabahar Port and the International North-South Transport Corridor (INSTC) which are crucial for enhancing regional connectivity and economic partnership,” Mr Misri said.

REDEVELOPMENT OF AFGHANISTAN

In a statement about the bilateral talks, the Ministry of External Affairs said in its statement that the two leaders noted that “The signing of the long-term contract of Chabahar Port is an important milestone in bilateral relations.”

It further stated that the two leaders reaffirmed its significance for reconstruction and redevelopment of Afghanistan and enhancing trade and economic linkages with Central Asia.”

INDIA’S SUPPORT TO IRAN

President Pezeshkian acknowledged India’s role in Iran’s accession to the Shanghai Cooperation Organisation or SCO and BRICS forums. “They agreed to continue their cooperation in various international forums,” the foreign secretary said at the press briefing.

The foreign ministry said that “Prime Minister Narendra Modi has invited Iranian President Pezeshkian to visit India at an early date,” adding that “President Pezeshkian has accepted the invitation.”

This was their first meeting after Mr Pezeshkian became President of Iran in July. He succeeded President Ebrahim Raisi, who died in a helicopter crash in May.
 

New Delhi:

India on Friday said a “narrow view” should not be taken on the long-term agreement between New Delhi and Tehran on the Chabahar port project as it would benefit landlocked Afghanistan, Central Asia and the entire region.

The remarks by Ministry of External Affairs spokesperson Randhir Jaiswal came days after the United States warned of sanctions following India and Iran sealing the deal.

India and Iran on Monday signed a 10-year agreement that provided for Indian operations at the Chabahar port.

“India’s commitment towards the Chabahar port is to realise its potential as a connectivity hub for Afghanistan and Central Asian countries, which are landlocked,” Mr Jaiswal said at his weekly media briefing.

He said an Indian company — India Ports Global Limited — has been operating the port since 2018 on an interim lease.

“Now, we have concluded a long-term agreement which is essential for port operations,” Mr Jaiswal said.

“Since then, we have provided humanitarian assistance, including 85,000 metric tons of wheat, 200 metric tons of pulses and 40,000 litres of pesticide Malathion, to Afghanistan through this port,” he said.

Located in the Sistan-Balochistan province on the energy-rich Iran’s southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties.

“The US has shown an understanding of the importance of the Chabahar port operations for continued humanitarian supplies to Afghanistan and to provide Afghanistan with economic alternatives,” Mr Jaiswal said.

“I would like to reiterate what the EAM (External Affairs Minister S Jaishankar) had earlier said that we should not take a narrow view of this issue,” he said.

Two days ago, Mr Jaishankar said a narrow view should not be taken of the agreement between India and Iran to develop the Chabahar port as the project will benefit the entire region. Mr Jaiswal said the Chabahar port project will benefit the entire region, particularly landlocked Afghanistan and Central Asia.

“The US has, in the recent past, appreciated the larger relevance of the Chabahar project, particularly in the context of humanitarian supplies to Afghanistan,” he said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

This week marked a new chapter in India’s 20 year old interest in a port in Iran- Chabahar. On a visit to Tehran, Shipping Minister Sarbananda Sonowal and his Iranian counterpart oversaw the signing of an agreement to develop the Shahid Beheshti terminal- one terminal in the warm water port just off Iran’s Sistan Baluchistan province.

Broadly, here are the terms of the agreement.

The Long term contract signed is for 10 years- earlier, the two sides had signed an MoU in 2016, part of a trilateral agreement with Afghanistan for the development of the port, but it could not be converted into a long term contract for a number of reasons- changes in the jt venture partners, the slow pace of Indian investment etc.

India has committed US $120 million, and a credit line of US $250 million to develop the terminal. This is a small amount compared to the other big projects in the region, but it’s a start.

Thus far the terminal has a modest operation, 6 harbour cranes, and other equipment worth $25 million- to handle about 8.5 million metric tonnes of cargo, mostly between India and Iran and India and Afghanistan, but the plan is for a 4-phase development of its capacity to 82 million tons per year and 32 jetties.

The Contract is between India Ports Global and Ports and Maritime Organisation of Iran. Earlier the joint venture was with the Aria Banader Iranian Port & Marine Services Company. The contract contains a clause to extend the lease of the port terminal to India after 10 years as well.

But here’s where trouble struck. In a US State department briefing, its spokesperson, when asked about the deal, raised the risk of potential sanctions. When asked if there would be an exemption for this, the spokesperson said no.

That “No” at the end is the most significant part of his statement. Why? Because in 2018, the US had introduced an amendment to its Iran Freedom and CounterProliferation Act (IFCA), allowing an exemption from very stringent sanctions on any company doing business in Iran –

1. For Humanitarian aid to Iran

2. For any assistance and support to Afghanistan (which is what Chabahar was designated as).

3. A temporary waiver of 6 months to India, China and other countries for the import of oil from Iran. While China continued its oil imports from Iran after the 6 months ran out, India bowed to the Trump administration’s pressure, and stopped all oil imports.

The US State department has not clarified its statement so far- but if it is changing policy, it may be for a number of reasons:

1. The US pulled out from Afghanistan in 2021, and no longer wishes to support Kabul under the Taliban regime.

2. The US wants to dissuade India from broadening Chabahar’s scope to the INSTC and trade with Russia – even with the exemptions, India has had to slow down investments in Chabahar, has found it hard to find suppliers and insurers for its shipments, and plans to build the Chabahar Railway line have been dropped.

3. The Biden administration is getting tougher on Iran, especially under fire from Trump in an election year, and is narrowing its exemptions for Chabahar as well.

On the other hand, many believe the US is unlikely to follow through on its threat, given its previous records on threatening sanctions.

1. In 2017, the US had threatened sanctions on Chabahar as well as India’s oil imports from Iran and Venezuela. On Chabahar it gave an exemption, but India pulled out of a number of oil investments and cancelled imports from Iran and Venezuela.

2. Prior to 2018, US had threatened India in 2012 to cancel Iranian oil imports, but New Delhi at the time had not agreed, no sanctions followed.

3. With Russia- the US threatened CAATSA sanctions over India’s purchase of the S-400 systems, but has not followed through, although its acted against China and Turkey.

The US has banned a handful of Indian companies in its sanctions regime, including one for selling dual use tech to Russia, but nothing like it has done with other countries including China- a testament to India’s importance.

Why Chabahar, Iran connectivity ties matter

1. Ties with Iran part of traditional diplomacy, alternative to Pakistan, access to central asia.

2. Chabahar and INSTC balance India’s west asia policy with I2U2 and IMEEC.

3. India is part of multilateral platforms with Iran: SCO and BRICS.

4. Backtracking on oil imports, other deals has cost India, Chabahar is now the lynchpin of ties

Worldview Take

With all the problems the US has this year, including Ukraine, Gaza, the Iran-Israel tussle, ties with China and others, it is hardly likely to open a new front with India over Chabahar. However, New Delhi must keep an eye on US Congress, which could take a tougher line, even after US elections, even as it moves to shore up flagging ties with Iran. Eventually, diplomacy is the art of letting others have your way, and not one of constant brinkmanship.

Script and Presentation: Suhasini Haidar

Production: Shibu Narayan and Ananyaa Desikan