India Sets 2018 Deadline for Chabahar Project’s 1st Phase
India is keen on expediting the development of Chabahar Port in Iran and hopes to complete the first phase of the project next year. This was announced by India’s Minister for Road Transport and Highways and Shipping Nitin Gadkari, the local newspaper Millennium Post reported.
Located in Sistan-Baluchistan Province on Iran’s southern coast, Chabahar is easily accessed from India’s western coast, bypassing Pakistan. “We can complete the work on the first phase of the project in 2018 ... The funds are likely to be released shortly. Tenders are out for the project,” he said. Kandla Port has floated tenders inviting global bids for supply and commissioning of terminal tractor trailers, forklifts, stackers, container handlers and yard cranes among other equipment at Shahid Beheshti Port in Chabahar.
The Indian Cabinet has already approved funds for the project’s development. For greater trade and investment flow with Iran and neighboring countries, the Cabinet last year had cleared proposals for development of Chabahar Port, including through a $150 million credit from Exim Bank. It also authorized the Shipping Ministry to form a company in Iran for implementing the Chabahar Port Development Project and related activities.
https://financialtribune.com/articl...018-deadline-for-chabahar-project-s-1st-phase
Chabahar Port early development in 2018
India says it expects to complete the first phase of the construction of Iran’s southeastern port of Chabahar in 2018.
“We can complete the work on the first phase of the project in 2018… The funds are likely to be released shortly. Tenders are out for the project,” India’s Shipping, Road Transport and Highways Minister Nitin Gadkari was quoted as saying by the media.
“Tenders are out for the project,” Gadkari said.
Gadkari added that Kandla Port had floated tenders inviting global bids for supply and commissioning of terminal tractor trailers, forklifts, reach stackers, empty container handlers and yard cranes among other equipment at Chabahar Port.
For greater trade and investment flow with Iran and neighboring countries, the Indian cabinet last year had cleared proposals for development of Chabahar port including through a $150 million credit from Exim Bank, reported the New Delhi-based The Indian Express.
The cabinet also authorized the Shipping Ministry to form a company in Iran for implementing the Chabahar Port Development Project and related activities, the daily added.
Located in the Sistan-Balochistan province on the energy-rich Persian Gulf nation’s southern coast, the port is easily accessed from India’s western coast, bypassing Pakistan.
As per a basic agreement signed between Iran and India last May, India is to equip and operate two berths in Chabahar Port Phase-I with a capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a ten year lease.
Ownership of equipment will be transferred to Iranian side on completion of 10-year period or for an extended period, based on the agreement between the two countries. The Iranian side had requested for provision of a credit of $150 million in accordance with the agreement, reported The Indian Express.
As per the agreement, the operation of two berths is to commence within a period of maximum 18 months after the signing of the contract.
Besides the bilateral pact to develop the Chabahar port, for which India will invest $500 million, a trilateral Agreement on Transport and Transit Corridor has also been signed by India, Afghanistan and Iran, the daily concluded.
http://www.presstv.ir/Detail/2017/03/10/513764/Chabahar-Port-early-development-in-2018
Hope to complete phase one of Chabahar Port in Iran by 2018: Nitin Gadkari
India is keen on expediting development of Chabahar Port in Iran and hopes to complete the first phase of the project next year, Union Minister Nitin Gadkari has said. Located in the Sistan-Balochistan province on the energy-rich Persian Gulf nation’s southern coast, the port is easily accessed from India’s western coast, bypassing Pakistan.
“We can complete the work on the first phase of the project in 2018… The funds are likely to be released shortly,” Shipping, Road Transport and Highways Minister Gadkari told PTI.
“Tenders are out for the project,” the minister said.
Kandla Port has floated tenders inviting global bids for supply and commissioning of terminal tractor trailers, forklifts, reach stackers, empty container handlers and yard cranes among other equipment at Shahid Beheshti Port, Chabahar, Iran.
The Cabinet has already approved funds for development of the project.
For greater trade and investment flow with Iran and neighbouring countries, the Cabinet last year had cleared proposals for development of Chabahar port including through a USD 150 million credit from Exim Bank.
It also authorised the Shipping Ministry to form a company in Iran for implementing the Chabahar Port Development Project and related activities.
As per the MoU signed between the two nations in May last year, India is to equip and operate two berths in Chabahar Port Phase-I with capital investment of USD 85.21 million and annual revenue expenditure of USD 22.95 million on a ten year lease.
Ownership of equipment will be transferred to Iranian side on completion of 10-year period or for an extended period, based on mutual agreement. The Iranian side had requested for provision of a credit of USD 150 million in accordance with the MoU.
As per the per the pact, operation of two berths is to commence within a period of maximum 18 months after the signing of the contract.
Besides the bilateral pact to develop the Chabahar port, for which India will invest USD 500 million, a trilateral Agreement on Transport and Transit Corridor has also been signed by India, Afghanistan and Iran.
http://indianexpress.com/article/in...r-port-in-iran-by-2018-nitin-gadkari-4562145/
India must get assertive on Farzad B gas project
Commerce rather than emotions seems to have taken over the bilateral ties between Iran and India, as the two take forward their relations post the sanctions period. “It is up to India to decide on oil and gas ties…it depends on market, on price and many such elements,” Iran’s Ambassador to India Gholamreza Ansari told BusinessLine. “India once used to be the main customer of Iranian oil,” he said, adding that Indian rice is popular in his country, but Indians should try not to lose the market.
In conversation with BusinessLine, Ansari, spelt out the expectations his country had with India on the Chabahar port and said the project is not exclusive to any one country. Excerpts:
After a significant decline, crude oil imports from Iran are going up again. Does it mean better ties with Indian oil firms?
India used to be a very important customer of Iranian oil. We were a trusted supplier to India. Definitely, we are interested to follow very natural links and hope we will be able to again become the main supplier of oil to India. Of course, it is up to India to decide as it depends on market conditions and price.
The main concern of buyers like India is pricing. Currently, India procures oil from Iran at a discount. Will this dynamics continue?
It depends on the market. I am sure if India has other cheaper options, they will take the price to some extent. But, if a better option is available, you will go for other suppliers. It’s very natural. As the market turns competitive, it brings in many elements on prices. In any circumstances, Indians today prefer to diversify their suppliers. It could be because of geographical or geopolitical issues.
Has the issue of oil dues that India had to pay Iran been resolved? Will there be any new payment mechanism?
As far as the oil dues are concerned, everything is set now. We know how much we should be paid and Indians know how much they should pay. So now we are going on with the new deliveries. There may be, at most, one or two companies whose dues remain. But that also have been set, and we are working on the modalities of payment.
Which are these companies?
Besides the main companies, there were several small ones as well. I do not want to name them. There was some dispute with them with the figures, but now it’s over. The mechanism, I hope, has also been agreed by now. As for the amount, I cannot give any specific figure that has been paid, but both sides are okay about it.
Will the new licensing regime in Iran affect the Farzad B (gas fields) deal? Will you give preference to ONGC Videsh?
The work on Farzad B began before the sanctions, and now we are in the post-sanctions period. We were expecting India to settle the issue before the sanctions; that did not happen. During the sanctions, it was understandable that India did not want to challenge the Americans.
After the sanctions, our expectation was that the procedure will expedite and we will come to a concrete conclusion.
The project was allocated for the Indians and we wanted to continue the discussions on Farzad B, especially when our President (Hassan Rouhani) and your Prime Minister (Narendra Modi) met in Ufa. But of course, the devil is in the details. So we hope now we will be able to soon conclude the talks. But, India should be more assertive.
Will Iran give Indian companies preference in oil/gas block auctions?
The Iranian market is becoming very competitive. This is why we were expecting India — before the sanctions or even during the sanctions — to do something for itself on this project (Farzad B). During the sanctions, especially, there was an exceptionally generous offer from Iran to India. But, as I said, because of the Indian reservations, it did not happen.
However, from the Iranian side, we see this as a project to link Iran and India in the energy business. Our preference is Indians, even our President was supportive. But, when it comes to technicalities, the issue of capabilities and financing comes. So we hope we will be able to do this project with India. A new door of energy will open between Iran and India — gas.
Is Iran-Pakistan-India pipeline (also called Peace Pipeline) a history?
It is 100 per cent up to the Indians to decide. Looking at the project logically, Iran is rich in mineral resource and a very reliable supplier of gas. The distance between India and Iran is 1,000. If you compare with Turkmenistan-Afghanistan-Pakistan, which is an imaginary project, this one is more economical. But when it comes to politics, then it’s something else.
Is Pakistan an issue?
No, I don’t think so — that was a good excuse, but not the main reason. First of all, we support TAPI (Turkmenistan-Afghanistan-Pakistan-India Pipeline). We support any pipeline that runs through this region. IPI was linking Iran, Pakistan and India — this is why it was called the Peace Pipeline. Its main purpose was how we can bring the three countries together. But it did not take off. But we cannot compare the capacities of TAPI and IPI.
What is status of Chabahar port?
We will inaugurate the first phase of Chabahar in the coming weeks. It is supposed to be done in phasses. Our President had also offered your Prime Minister to develop one of the phases. But India preferred a step-by-step approach. So they came and participated in developing the first phase. India is developing a part of it with an investment of $85 million.
The issue in Chabahar was more about expectations. Expectations were much more than what is happening. It was offered to the Indians in 2003 and we are now in 2017. India had announced a $500-million credit-line, out of which $150 million is going to be operational now.
Is Iran looking at China to develop Chabahar?
It is supposed to be an international port. We will be successful if we can have all countries on board, even those such as Turkmenistan, Uzbekistan, Tajikistan and others. We are asking everyone to invest in Chabahar and do business. It is not exclusive to anyone.
What is the status of the Zahedan-Chabahar rail link? Does Iran plan to make it part of the trilateral transit agreement among India, Iran and Afghanistan?
When we inaugurate the first phase of Chabahar, the capacity of the port will increase from 3 million tonnes to almost 6 million tonnes.
IRCON was there recently. We hope they find it feasible because constructing is one issue and financing is another. India is trying to rope in other countries also in this. We welcome that. We hope the discussion proceeds in the very near future.
As regard to the trilateral agreement, yes we do. All governments have approved it. In Iran, we are waiting for the Parliament approval.
When will India and Iran sign the Double Taxation Avoidance Agreement (DTAA)?
We continue to discuss the three main agreements — the Preferential Tariff Agreement, DTAA and the Bilateral Investment Treaty. I hope we soon sign at least the Preferential Tariff Agreement, while we continue to discuss the two others.
http://m.thehindubusinessline.com/n...ve-on-farzad-b-gas-project/article9560341.ece
Currency crisis in Iran hits India's basmati rice exports
Uncertainty over use of currency for bilateral trade has impacted India’s basmati rice exports to Iran following hesitation over the use of the dollar after fresh sanctions levied by the United States on the Islamic country.
US president Donald Trump levied sanctions on 13 Iranian individuals and 12 entities for their support to that country's administration in connection with the test of a non-nuclear ballistic missile last month. According to trade sources, the Iranian government is reluctant to use the dollar for bilateral trade with friendly countries, including India. Since India has already cleared its oil dues in dollars, Iran lacks rupee-denominated currencies in its foreign currency reserves, casting a cloud uncertainty over India’s basmati rice exports to that country.
Trade sources believe that Iran is looking to replace the dollar with the euro. However, nothing has been finalised yet, and till a decision is taken, India’s basmati exports to Iran may not resume. Shipment for old contracts, however, will continue.
“India had a bilateral understanding with Iran for settlement of oil purchases in rupees. In fact, India cleared all dues arising from crude oil purchases in dollars. Hence, rupee reserves (in Iran) have been exhausted. Interestingly, Iran is reluctant to use the dollar for bilateral trade in response to US sanctions on it. The Iranian administration has also not taken any final decision on the use of any alternative currency. Hence, there is uncertainty over India’s basmati rice exports to that country. Until, the dilemma over the use of currency recedes, India’s basmati rice exports to Iran are unlikely to resume,” said Gurnam Arora, Joint Managing Director, Kohinoor Foods Ltd, producer and exporter of Kohinoor brand basmati rice.
Meanwhile, a group of over six to eight importers in Iran has set $850 a tonne as the maximum import price of Indian basmati, which exporters based here find unviable due to a sharp increase in the prices over the past four months. They seek a minimum $925–950 a tonne.
A senior Apeda (Agricultural and Processed Food Products Export Development Authority) official said the Iranian government hasn't set any price for Indian basmati.
“The currency issue can be dealt with bilaterally (between buyers and sellers) through use of alternative denominations like euro, yen and rupee. So, our request to exporters is not to sell basmati rice at a loss. They should wait till a clear price signal is received from the market,” a senior industry official said.
Meanwhile, the price of the benchmark basmati rice in the wholesale market near New Delhi jumped by 50 per cent to trade at Rs 72 a kg currently from Rs 48 a kg on October 1, 2016. Indian exporters, therefore, seek a similar increase in realisation from basmati exports to Iran. In the last two tenders, the average realisation works out to $650-700 a tonne.
“Iran’s move to put a cap is a result of a cartel of importers there. However, Iran has also reduced duty on basmati rice to 26 per cent from 40 per cent to ensure that its countrymen get rice at lower cost. Pakistan will derive some advantage from this as their logistic cost is lower due to proximity with Iran,” said Rajiv Tevtiya, Managing Director, RML AgTech, a Mumbai-based agri-technology and advisory firm.
Meanwhile, data compiled by Apeda showed India’s basmati rice exports at 2.9 million tonnes between April–December 2016, 0.1 million tonnes lower than the same period the previous year. Exports, however, are likely to pick up and touch last financial year’s level of 4 million tonnes by March 2017, said an Apeda official.
Of about one million tonnes of annual imports, Iran has purchased nearly 0.5 million tonnes from India between April–December 2016.
http://www.business-standard.com/ar...ia-s-basmati-rice-exports-117021100298_1.html
Iran becomes India’s 3rd largest oil supplier
Iran has zipped past the likes of Venezuela and Nigeria to become India’s third largest oil supplier as easing western sanctions enabled Indian companies to increase purchases from that country.
Saudi Arabia and Iraq continue to be ahead of Iran, which was sixth biggest supplier of crude oil to India in 2015-16. It has overtaken Venezuela, Nigeria and UAE to become India’s third largest supplier in April-December period of 2016-17.
Iran sold 19.8 million tonne crude oil to India in the first nine months of the current fiscal, officials said. This is behind Saudi Arabia’s 30.3 MT and 29.1 MT sourced from Iraq. In full 2015-16 fiscal, Iran had supplied 12.7 MT crude oil to India. That year Saudi Arabia had sold 40.4 MT oil to India with Iraq chipping in 26.8 MT. Venezuela supplied 23.6 MT, Nigeria 23.4 MT and UAE 15.7 MT.
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Iran was India’s second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear programme relegated it to the 7th spot in subsequent years. In 2013-14 and 2014-15, India bought 11 million tons and 10.95 million tons respectively from Iran, officials said.
India is 80% dependent on imports to meet its oil needs. Easing of western sanctions a year ago has led to Indian refiners raising their purchase from Iran. During April-December 2016-17, Venezuela supplied 17.5 MT of oil, UAE 13 MT and Nigeria 12.8 MT.
Kuwait, which was third largest supplier in 2013-14 has steadily slipped, supplying just 7.6 MT in first nine months of 2016-17 fiscal. Iran in 2008-09 sold 21.81 MT oil to India, which came down marginally to 21.19 MT in the following year. It fell to 18.49 MT in 2010-11 and to 17.44 MT in 2011-12.
After the west imposed sanctions, India brought down the purchases to 13.14 MT in 2012-13 and had limited them in the years thereafter. Officials said India imported 161.7 MT of crude oil in the April-December period this fiscal, 64.2% of which came from the Middle-East region. India spent $50.62 billion on crude oil imports during the first nine months.
http://www.livemint.com/Industry/XD...-becomes-Indias-3rd-largest-oil-supplier.html
India looks forward to strengthen cooperation with Iran: Prez
Terming Iran as an important partner, President Pranab Mukherjee today said that India looks forward to strengthen bilateral cooperation with the Persian Gulf country.
He also extended his greetings and felicitations to the government and the people of that country on the eve of the 38th anniversary of the Islamic Revolution of Iran.
"We consider Iran as an important partner and look forward to strengthening our bilateral cooperation across diverse areas on the basis of our shared interests.
"I am confident that such engagement will bring stability and prosperity to the entire region," Mukherjee said in a message to Grand Sayyid Ali Hosseini Khamenei, the supreme leader of the Islamic Republic of Iran.
The Islamic Revolution stands testimony to the great valour and sacrifices of the people of Iran, he said.
"India-Iran relations are rooted in history and are based on our close cultural and civilisational linkages that span millennia," the President said.
http://www.moneycontrol.com/news/cu...ooperationiran-prez-1002285.html?classic=true
