India plans to build a container terminal and a multi-purpose cargo terminal with a waterfront length of 1,240 meters at the Chabahar Port. Reports state, that the government ideates to begin the operation on the 360 meters by May-end. Senior officials familiar with the plan stated that the government will begin with the operation by May end on a borrowed equipment from Iran.
As per the agreement signed during the Iranian president, Hassan Rouhani’s visit to India, the internal management decided to operationalize the port within the next 3 months. According to the MoU, India will be operating and equipping two terminals at Chabahar Port Phase-1. The total capital investment for the project for a 10 year lease period is US$ 85.21 million with an annual revenue generation of US$ 22.95 million.
The project IPGPL is a joint venture between Jawaharlal Nehru Port Trust and Kandla Port Trust for the development of Chabahar. Located on the southeastern coast in the Sistan Baluchistan Province of Iran, the port is of great strategic significance for India. The collaboration will provide India with an alternative and dependable route that leads to Afghanistan, via Pakistan and get access to central Asia which has the most crucial resources.