New Delhi , Oct 20 , IRNA — An Indian newspaper commented on theimportance of Chabahar port project for both Iran and India and said thetwo countries were working out ways to sidestep the US sanctions.
According to IRNA on Sunday, the ‘Hindu business line’ noted that ‘India isweighing a Rupee-Rial payment mechanism for the Chabahar project in Iran asit weaves a way around the impending sanctions imposed by the US on thePersian Gulf nation from 4 November, to kickstart the port that isconsidered critical to the country’s geopolitical and trade interests.’
Quoting the senior Indian official related to the project Gopal Krishna, itsaid that India was “trying for a Rupee-Riyal payment mechanism forChabahar port project.
Basically, the guarantees will have to be given in rupees now instead of indollars or Euros.’
He said that the issue was discussed with a high-level delegation led byMohammad Rastad, Deputy Minister and Managing Director for Ports andMaritime Organization, Islamic Republic of Iran, during its visit to Indialast week.
The official said the plan to set up an alternative payment mechanismreveals that India is willing to go ahead with the project even if thediplomatic lobbying for a waiver from the US on Chabahar port project failsto yield results. India’s bid to start commercial operations at the porthas been held up due to banking challenges arising from the fresh round ofsanctions imposed by the US, IRNA reported.
According to the newspaper, Arun Kumar Gupta, Managing Director, IndiaPorts Global said, ‘A Rupee-Rial payment mechanism is the only way out ofthis. That is what we are working on. Instead of dollars or euros, allpayments to the Iranian side will be under Rupee-Rial mechanism,” addingthat a team from India Ports Global will visit Iran in the next few days to“work out things”.
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“Irrespective of the sanctions, we are trying to go ahead with the project;a new payment system will have to be put in place,” he stated.
The paper went on to note that the Indian Shipping Minister Nitin Gadkarihad earlier underlined the strategic importance of Chabahar port to Indiaby saying, “Our government is building a big port at Chabahar. The distancebetween Mumbai and Delhi is longer compared to the distance betweenChabahar and Kandla. In the next two or three months, we will start theport. Gas and power are available at cheaper rate in Chabahar, port isready and distance is less, but due to international situation andconstraints, we are facing problems. Companies can start manufacturing ureain Chabahar and send it to Kandla by sea and we can reduce the cost by atleast 40 per cent”.
India Ports Global and Aria Banader company in the Iranian Port signed adeal in May 2016 to equip and operate container and multi-purpose terminalsat Shahid Beheshti – Chabahar Port Phase-I with capital investment of$85.21 million and annual revenue expenditure of $22.95 million on a10-year lease.
Located in Sistan-Baluchistan Province on Iran’s South-eastern coast(outside the Persian Gulf), Chabahar port is of great strategic importancefor India for development of regional maritime transit traffic toAfghanistan and Central Asia.
