The Union Cabinet on 18 October 2014 approved an inter-governmental Memorandum of Understanding (MoU) with Iran to upgrade the Chabahar port Phase-I.
Under the Chabahar port Phase-I project India will set up a Joint Venture (JV) Company with an investment of 85.21 million US dollar and operate the port for 10 years, through a leasing agreement.
The Company will equip two fully-constructed berths in Chabahar port within 12 months, one as a container terminal and second as a multi-purpose cargo terminal.
India will transfer ownership of the equipment to be provided through the investment to Chabahar port and maritime organisation without any payment at the end of the tenth year of operation and can also form a joint venture company that could include one or more Iranian companies
About Chabahar port
Chabahar port is located in the Sistan-Baluchistan Province on south-eastern coast of Iran, which lies outside the Persian Gulf and it is easily accessed from western coast of India. India can access to Zaranj in Afghanistan which is at a distance of 883 km by using Chahbahar port.
Who: Union Cabinet
When: 18 October 2014