India is set to sign a contract to build and run a port on Iran’s southern coast, in a deal expected to be confirmed during a visit by Prime Minister Narendra Modi, which begins today.
An initial investment of $200 million would go into building the port, which would help India gain a foothold in Iran and with it, access to central Asia and Afghanistan, according to a Reuters report.
Talks to build the Chabahar port have been running for years, but since the scaling down of Western-backed sanctions against Iran, India has pushed for the project so as not to lose out to competitors like China.
The deal is expected to see India develop two terminals and cargo berths at Chabahar, on the Gulf of Oman.
Gopal Baglay, a foreign ministry official in charge of Iranian ties, said that India would make an initial investment of more than $200 million in the port, of which India’s Exim Bank would provide a credit line of $150 million, Reuters reported.