Chabahar Port: US gives ‘written’ assurance to India facilitating banks to fund $85 mn equipment pur

[Zapper]

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The port is of great strategic importance for the development of regional maritime transit traffic to Afghanistan and Central Asia.

In a big breakthrough, the United States has given a written assurance to India that will help facilitate global banks to fund the purchase of equipment worth $85 million to be erected at Chabahar port which India is developing in Iran.

In November 2018, the United States granted a waiver to the port from the sanctions it has imposed on the Persian Gulf nation.


“We have to procure equipment for running the port, but because of the US sanctions, we are not able to procure,” a government official briefed on the issue said.

“We have placed the orders for equipment, some as long as two years ago, but we are not able to open a letter of credit (LCs). Banks are not coming forward. The US had earlier given verbal assurances (on the waiver fine print) but were very reluctant to give anything in writing, and the banks insist on the document. Now, after the recent visit of Foreign Minister S Jaishankar, they have given us something in writing, and we are trying to go ahead,” the official stated.

“The payments are in dollars. We need some banks which deal in dollars or euros, so we have to hit the international banking system and there if the word Iran comes, no bank is prepared to stick its neck out,” he stated.

India Ports Global (a 60:40 joint venture between Jawaharlal Port Trust and Deendayal Port Trust) and Aria Banader Iranian Port signed a deal in May 2016 to equip and operate the container and multi-purpose terminals at Shahid Beheshti – Chabahar Port Phase-I with capital investment of $85.21 million and annual revenue expenditure of $ 22.95 million on a 10-year lease. Cargo revenues collected will be shared by India and Iran as per an agreed formula.

Located in the Sistan-Baluchistan Province on Iran’s South-eastern coast (outside the Persian Gulf), Chabahar port is of great strategic importance for the development of regional maritime transit traffic to Afghanistan and Central Asia.

India Ports Global has ordered four rail-mounted quay cranes (RMQCs) for a combined $29.8 million from Chinese port crane maker Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC) and 14 rubber-tyred gantry cranes or RTGCs for about $18 million from Finnish crane maker Cargotec OYJ for erecting at Chabahar port. It had also placed orders for purchasing mobile harbour cranes at Italy’s Italgru SRL.

“The payments for the equipment can only be made when LCs are opened. Once you open the LC, the other party knows that the bank assures the money. And then, they start making the equipment. That is the whole purpose of LC. Then, the bank releases the money as per the stages/timelines specified in the contract,” the official said.

Because of the delay in opening the LCs, the equipment delivery will also be delayed, he added.

The delay in installing the equipment has, in turn, delayed India’s plans to hire an Indian manage, operate and maintain (MOM) contractor for the port.

“If the equipment is not there what will we do by having an Indian MOM operator; that is for the full ten-year contract. Currently, we are making short contracts until the issues are sorted out. Because of the sanctions, everything has been spoiled,” he added.


https://www.thehindubusinessline.co...ush-to-chabahar-port-plan/article30393995.ece

 

[BATMAN]

This port was built, when General Kiyani blocked transit aid to Afghanistan. Which hurt Indian business and US military supplies, badly.
So this is kind a backup for the situation, when transit to Afghanistan through Pakistan is blocked for good.

 

[hussain0216]

This is taking longer than Tejas

 

[-blitzkrieg-]

This will be the exit point for US from Afghanistan.Already Indian trucks are carrying beef jerky up there.
Pakistan should ask for a similar waiver for IP pipeline.

 

[Kaniska]

Chabbar is a dead project....If BJP will remain in power or influencial political party in India for next 10 year, Arabs and their influence will impact out foreign and economic policy to move ahead with any significant investment in Iran. And also, Iran's stance on Kashmir is disspointing.

Overall, i think Chabbar is a dead project.

 

[-blitzkrieg-]

no one is exiting, keep telling you all that it is a supply route.

whenever it happens in the foreseeable future.

 

[Indus Pakistan]

Overall, i think Chabbar is a dead project.

I have been saying this for years. But Chah is great photo opportunity. More pictures. More public statements. But not a brick. And I hear the Iranians have been rather vocal over Kashmir unlike Arabs.

 

[Kaniska]

not in a million years, if any thing it's getting bigger if it were a choice between picking a couple of still standing but powerless Arab countries and the US/Iran/NATO, which will you pick?
disappointing? Ayatollah saying some thing does not become official stance of the Persian leaders

Let us accept the fact that India in 2020 is different than earlier days. BJP will remain a powerful entity even if they are in power or out of the power. Arabs done an excellent job by courting India under BJP. Gulf countries are investing more and more in India. And in specific, the support of UAE and SA for Kashmir issue was a lifeline for India amongst Muslim countries.

I am not getting into details of who is powerful in Iran. But if Iran is our friend or at least consider us as friend since last 70 year, they could have understood our sensitivies in some issues. Rather than success of India, i would rather give credit to MBS who has successfully nullified 70 years of India Iran allignment and put India into his side.

I have been saying this for years. But Chah is great photo opportunity. More pictures. More public statements. But not a brick. And I hear the Iranians have been rather vocal over Kashmir unlike Arabs.

The point is not about photo ups. Technically India is still engaged in this project. But if my understanding is correct, Iran overplayed its card againt India. They assumed that Arabs are anyway friends of Pakistan. So India do not have any choice rather than courting Iran. But somehow, MBS is a smart guy. Even i am also surprised to see MBS and Modi and their synergy in India and Gulf relationship.

Gulf countries invested a lot with top level officials to improve relation with us where as Iran had a scope but they were very reluctant to stand with us in Kashmir conflict. So in our diplomatic circle the huge amount of sentiment in favor of Iran from India, is fading now.

 

[TNT]

Let us accept the fact that India in 2020 is different than earlier days. BJP will remain a powerful entity even if they are in power or out of the power. Arabs done an excellent job by courting India under BJP. Gulf countries are investing more and more in India. And in specific, the support of UAE and SA for Kashmir issue was a lifeline for India amongst Muslim countries.

I am not getting into details of who is powerful in Iran. But if Iran is our friend or at least consider us as friend since last 70 year, they could have understood our sensitivies in some issues. Rather than success of India, i would rather give credit to MBS who has successfully nullified 70 years of India Iran allignment and put India into his side.



The point is not about photo ups. Technically India is still engaged in this project. But if my understanding is correct, Iran overplayed its card againt India. They assumed that Arabs are anyway friends of Pakistan. So India do not have any choice rather than courting Iran. But somehow, MBS is a smart guy. Even i am also surprised to see MBS and Modi and their synergy in India and Gulf relationship.

Gulf countries invested a lot with top level officials to improve relation with us where as Iran had a scope but they were very reluctant to stand with us in Kashmir conflict. So in our diplomatic circle the huge amount of sentiment in favor of Iran from India, is fading now.

Lolz iranians are also no kids. They know chabahar is strategically more important than business for india. They talked about kashmir n tried getting close to Pakistan only to pressure india into start working on chabahar despite sanctions. Arabs are investing in india only so it can reduce iranian influence.

 

[925boy]

This port was built, when General Kiyani blocked transit aid to Afghanistan. Which hurt Indian business and US military supplies, badly.
So this is kind a backup for the situation, when transit to Afghanistan through Pakistan is blocked for good.

Please dont forget this port is also being developed incase Pakistan decides to strangle Afghanistan economically for whatever reason(s). So its in US and other countries with interests in Afghanistan to support alternative transportation routes for Afghanistan. How can Afghanistan develop if the one country(Pakistan) that the vast majority of its trade is routed through blocks it like you said? You're focusing on Indian and US biz being affected but you are ignoring the fact that Afghanistan is the biggest loser in that situation.

 

[Path-Finder]

I remember a time when indians were doing hard pooja of this port.

 

[925boy]

Sanctions apparently cant stop Iran from getting strategic facilities and arrangements with neighboring countries. China and Russia are apparently supporting strongly for Pakistan to do its part of the IP pipeline despite the sanctions currently on Iran. The next few years in southeast Asia and Middle east will be VERY interesting..

This will be the exit point for US from Afghanistan.

How??? this makes no sense. Iran wont allow it, unless a grand peace deal between US and Iran is on its way or signed already by the time that happens. Or Iran will extort US financially to allow it happen. Sorry, but Pakistan is way more likely to the route that US troops exit Afghanistan. Pakistan can yell all it wants, but we know Pakistan in the end will always "work" with US in that region.

Indian trucks are carrying beef jerky up there.

1. and?? You want Afghanistan's economic lifeline to be only controlled by Pakistan? Afghanistan needs alternative routes for commerce.

Pakistan should ask for a similar waiver for IP pipeline.

I have no good idea why Pakistan hasnt done this, and CHina and Russia are currently in strong support of it. Pakistan took money and other benefits instead of securing its energy via the IP pipeline.

 

[BATMAN]

Please dont forget this port is also being developed incase Pakistan decides to strangle Afghanistan economically for whatever reason(s). So its in US and other countries with interests in Afghanistan to support alternative transportation routes for Afghanistan. How can Afghanistan develop if the one country(Pakistan) that the vast majority of its trade is routed through blocks it like you said? You're focusing on Indian and US biz being affected but you are ignoring the fact that Afghanistan is the biggest loser in that situation.

Oil, food, cement, iron comes from Iran, for which Chabahar port is not needed, while domestic appliances, medicine, auto parts, etc. comes from India via Pakistan, which would become extremely expensive if transited through Chabahar.
Chabahar port has zero (meaningful) trade purpose for India.

Afghanistan will never develop as long it's being exploited by 3 strategic allies, namely US-India-Iran.

 

[SubWater]

I am not getting into details of who is powerful in Iran. But if Iran is our friend or at least consider us as friend since last 70 year, they could have understood our sensitivies in some issues. Rather than success of India, i would rather give credit to MBS who has successfully nullified 70 years of India Iran allignment and put India into his side.

Iran wont sell his brothers and sisters to $$$.
We could make deal but that does not mean we accept India Wrong policies toward oppressed people of Keshmir.

Chabbar is a dead project....If BJP will remain in power or influencial political party in India for next 10 year, Arabs and their influence will impact out foreign and economic policy to move ahead with any significant investment in Iran. And also, Iran's stance on Kashmir is disspointing.

Overall, i think Chabbar is a dead project.

first Chabahar, not Chabbar .
Chabahar is progressing, and we continue that with or without India.
Chabahar is alive.

 

[Kaniska]

Iran wont sell his brothers and sisters to $$$.
We could make deal but that does not mean we accept India Wrong policies toward oppressed people of Keshmir.

first Chabahar, not Chabbar .
Chabahar is progressing, and we continue that with or without India.
Chabahar is alive.

Of course...my analogy is with reference to India’s involvement in Chabbar port.
Again, you can continue with your stand, but Kashmir is a major diplomatic situation for us.We are surprised and disappointed.