In­dia ap­proves $150m credit line for Iran’s Chaba­har port

The Pak Banker - - BUSINESS -

NEW DELHI: In­dia on Wed­nes­day ap­proved a $150 mil­lion credit line for the de­vel­op­ment of Iran's Chaba­har port, the govern­ment said in a state­ment. The port in south­east Iran is cen­tral to New Delhi's ef­forts to cir­cum­vent archri­val Pak­istan and open up a route to land­locked Afghanistan where it has de­vel­oped close se­cu­rity ties and eco­nomic in­ter­ests. Un­der the agree­ment signed last year be­tween the two coun­tries, In­dia will equip and op­er­ate two berths in the first phase of de­vel­op­ment at Chaba­har Port and ex­tend a credit line of $150 mil­lion through its ex­ter­nal lend­ing arm. Both berths will com­mence op­er­a­tions within 18 months of the sign­ing of a fi­nal con­tract, the state­ment said. In­dia will make a cap­i­tal in­vest­ment of $85.21 mil­lion and an­nual rev­enue ex­pen­di­ture of $22.95 mil­lion on a ten year lease fol­low­ing which the own­er­ship of equip­ment will be trans­ferred to Iran. New Delhi and Tehran agreed in 2003 to de­velop Chaba­har on the Gulf of Oman, near Iran's bor­der with Pak­istan, but the ven­ture has made lit­tle progress be­cause of the sanc­tions over Iran's atomic pro­gramme. Western na­tions last month lifted some of those sanc­tions.

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