India, Iran sign agreements,
Uncertainty over US policies on nuke deal casts shadow over project
NEW DELHI (Reuters) – 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 scrap the Iran nuclear deal.
A main goal of Iranian President Hassan Rouhani’s visit has been seeking billions of dollars of Indian investment amid the US pressure.
Soon after the sanctions were lifted, India said its firms could spend as much as $20 billion on not just the port but also petrochemical plants, railway lines and other industries in the area. But progress has only been made on the port.
Iranian officials say the slowdown is largely because India has become hesitant following Trump’s attempts to undermine the Iran nuclear deal and that Rouhani has been urging India to make good on its commitments.
The 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 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.
Rouhani said on Saturday that Iran would adhere to commitments under its 2015 international nuclear agreement, signed with six world powers to limit its nuclear program.
“We will adhere to our commitments made,” Rouhani said at an event in New Delhi. “After signing a contract, haggling with it is ridiculous.”