India has allocated ₹100 crore ($12.16 million) for Iran’s Chabahar port in the 2023-24 budget presented on Wednesday, signaling the importance of the facility in regional connectivity efforts, Hindustan Times reported.
The outlay for Chabahar port, where a terminal is being operated by state-run India Ports Global Limited, has been maintained at ₹100 crores, the same level as the current and previous fiscal years, the report said, adding that this reflects the focus on connectivity projects, including the International North-South Transport Corridor.
India has committed grant aid of $85 million and a credit facility of $150 million for developing Shahid Beheshti terminal at Chabahar Port, for which the US granted a special waiver from sanctions imposed on Iran.
India and Iran are close to striking a long-term agreement for operations at the strategic Chabahar port, with the matter held up only by differences on a clause related to arbitration, Hindustan Times reported in September citing people familiar with the matter.
The long-term agreement, valid for a period of 10 years and to be extended automatically, is meant to replace an initial pact which covered India’s operations at Shahid Beheshti terminal in Chabahar port and has been renewed on an annual basis.