India & Iran sign deal on Chabahar port; US issues words of caution

The Chabahar Port is an India-Iran flagship project that serves as a key transit port for trade with Afghanistan and Central Asia.

Indian minister of ports, shipping and waterways Sarbananda Sonowal, who was in Chabahar for the signing ceremony, met Iranian minister of roads and urban development Mehrdad Bazrpash, a release from the Indian ministry of ports, shipping and waterways said.

IPGL will reportedly invest nearly $120 million in equipping the port. India has also offered an in-credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

Hours after the agreement was signed to operate the Shahid-Behesti port for 10 years, the United States cautioned that anyone considering business deals with Tehran needs to be aware of the ‘potential risk of sanctions’.

"We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port, I would let the government of India speak to its own foreign policy goals, vis-a-vis the Chabahar Port as well as its own bilateral relationship with Iran," principal deputy spokesperson for the US State Department Vedant Patel said in a press briefing.

"Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk they are opening themselves up to, potential risk of sanctions," Patel emphasised.

Fibre2Fashion News Desk (DS)