India Approves $150 Million Project for Development of Chabahar Port

India's cabinet approved a $150 million project on Wednesday, March 5, for the development of the strategic Chabahar port in southeastern Iran, which includes the development of a transit road to Afghanistan to bypass Pakistan. According to AFP, the Indian government announced this news in a statement, stating that Prime Minister Narendra Modi chaired the cabinet meeting. New Delhi signed a multi-million dollar memorandum of understanding with Tehran in May this year to develop the port, but the implementation of this memorandum has been delayed so far. The Indian government's statement says that the Chabahar port development project 'provides opportunities for Indian companies to strengthen their presence and footprint in the region.' The statement adds: 'India is negotiating this project to expand its growing relations and investments with Iran and other regional countries, specifically Afghanistan.' The development of Chabahar port will also create competition with China, which has invested in the Gwadar port in Pakistan. Abdullah Abdullah, the Afghan Vice President, who visited New Delhi earlier in February, expressed hope that the Chabahar port development plan would be approved as soon as possible. He stated that the development of Chabahar in Iran is a key issue for trade between India and Afghanistan. This plan will act as a gateway for energy and trade routes not only in Afghanistan but also in Central Asia. Iran and India reached an agreement in 2003 to expand Chabahar port, but the project has progressed slowly due to sanctions against Tehran. The Indian Minister of Transport and Shipping stated on September 23 that India is ready to invest $15 billion in Iran, provided that Tehran offers better conditions for New Delhi, including selling cheaper gas. Nitin Gadkari stated that this investment will be made in construction projects, including the full development of Chabahar port. Chabahar, located at the southernmost point of Sistan and Baluchestan province, is a vital center in India's efforts to push back its long-time rival Pakistan and serves as a route to Afghanistan, which has close security and economic relations with New Delhi. This port can also serve as a route for trade with oil-rich Central Asian countries. The Indian Minister of Transport and Abbas Akhoundi, Iran's Minister of Roads, signed an $85 million contract in May this year to lease two existing docks at Chabahar port, which are to be used as multipurpose cargo unloading terminals.