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NEW DELHI: The Cabinet is likely to clear India's first overseas port project, Chabahar Port in Iran, on Wednesday. India's capital investment is pegged around Rs 500 crore for operationalisation of two cargo berths in this Iranian port.
Sources said once there is Cabinet nod the government would sign memorandum of understanding (MoU) with Iran government to expedite the project. Located along the Makran coast in the Gulf of Oman, Chabahar is in close proximity to the Strait of Hormuz which facilitates about 40% of world's oil trade.
"This is a strategic project for India. While the capital investment will be used for buying equipment for cargo handling there will also be financial viability assistance for this the project for 10 years since cargo flow is likely to be less at this port," a government official said.
TOI has learnt that the proposal for annual financial viability assistance would be take up later with the Cabinet Committee on Security.
Chabahar port will not only provide India easier access to Afghanistan and Central Asia without having to depend on Pakistan, it will also neutralize Chinese control over Pakistan's Gwadar port, just 76 km from this port in south Iran.
The port was a dream project of the former Prime Minister, Atal Bihari Vajpayee, who had signed MoU for its joint development with the then Iranian President, Mohammad Khatami, in 2003.
Last month shipping minister Nitin Gadkari had said, "The distance between Chabahar and Mundra ports is less than that between Delhi and Mumbai... it (presents) a golden opportunity for transportation of gas, urea, etc."
The port will be developed by a joint venture company formed by the Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT). The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia, bypassing Pakistan.
Cabinet likely to clear investment in Chabar Port in Iran - The Times of India
Sources said once there is Cabinet nod the government would sign memorandum of understanding (MoU) with Iran government to expedite the project. Located along the Makran coast in the Gulf of Oman, Chabahar is in close proximity to the Strait of Hormuz which facilitates about 40% of world's oil trade.
"This is a strategic project for India. While the capital investment will be used for buying equipment for cargo handling there will also be financial viability assistance for this the project for 10 years since cargo flow is likely to be less at this port," a government official said.
TOI has learnt that the proposal for annual financial viability assistance would be take up later with the Cabinet Committee on Security.
Chabahar port will not only provide India easier access to Afghanistan and Central Asia without having to depend on Pakistan, it will also neutralize Chinese control over Pakistan's Gwadar port, just 76 km from this port in south Iran.
The port was a dream project of the former Prime Minister, Atal Bihari Vajpayee, who had signed MoU for its joint development with the then Iranian President, Mohammad Khatami, in 2003.
Last month shipping minister Nitin Gadkari had said, "The distance between Chabahar and Mundra ports is less than that between Delhi and Mumbai... it (presents) a golden opportunity for transportation of gas, urea, etc."
The port will be developed by a joint venture company formed by the Jawaharlal Nehru Port Trust (JNPT) and the Kandla Port Trust (KPT). The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia, bypassing Pakistan.
Cabinet likely to clear investment in Chabar Port in Iran - The Times of India
