Long Term Master Agreement between India Port Global Limited (IPGL) and Ports and Maritime Organization of Iran (PMO)

Recently Union Minister for Ports, Shipping & Waterways and AYUSH Sarbananda Sonowal visited Chabahar, Iran to witness the signing ceremony of the Long Term Main Contract for the development of Shahid Beheshti Port Terminal, Chabahar.

Key Points

• A long-term master contract was signed between India Port Global Limited (IPGL) and Ports and Maritime Organization (PMO) of Iran.
• The signing of the long-term contract will further strengthen relations between the two countries and also highlights the importance of Chabahar as a gateway to trade with Afghanistan and wider Central Asian countries.
• The Union Minister held a fruitful bilateral meeting with His Excellency Mehrdad Bajrapash, Minister of Roads and Urban Development of Iran.
• The two Ministers discussed the shared vision of their leaders to strengthen bilateral cooperation in connectivity initiatives and to make Chabahar Port a regional connectivity hub.

About India Ports Global Limited (IPGL)

• It is a major public undertaking under the Ministry of Shipping, Government of India.
• IPGL was established in 2015 to develop and provide infrastructure in Indian ports.
• Its major objective is to set up and manage infrastructure projects in ports in India and abroad.
• IPGL is involved in allied activities such as marine and port infrastructure projects, marine fuel supply, docking facilities and container operations.
• Development activities at Chabahar Port (Iran), Gangavaram Port (Andhra Pradesh) and Paradip Port (Odisha) are its major projects.
• IPGL has tied up with port authorities of various countries to set up projects abroad.
• Its headquarters are located in Mumbai and its Chairman and Managing Director is appointed by the Ministry of Shipping.

About Ports and Maritime Organization (PMO)

• PMO was established in the year 1949.
• It is an important body under the Ministry of Shipping, Government of India.
• Its main role is to overall develop, regulate and manage the Indian ports and maritime transport system.

Chabahar Port Project

• The development of Chabahar Port Project is a major project of India-Iran.
• Chabahar port is located on the Arabian Sea in Iran’s Sistan-Baluchistan province.
• India, Iran and Afghanistan had signed the trilateral agreement in the year 2016.
• India has committed to invest approximately $500 million for the development of Chabahar port.

Benefits and Importance:

• This port will provide India a major trade gateway to Afghanistan, Central Asia and Europe.
• This will promote regional connectivity and economic cooperation.
• India will be able to pursue its ‘Connecting the Ocean’ policy.
• It will provide an alternative to China’s ambitious Belt and Road Initiative.

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