$120 mn investments, $250 mn credit for Chabahar Port growth
PORTS & SHIPPING

$120 mn investments, $250 mn credit for Chabahar Port growth

The signing of the Long Term Bilateral Contract on Chabahar Port Operations occurred in the presence of HE Mehrdad Bazrpash, Minister of Roads & Urban Development, Iran, and India's Minister of Ports, Shipping, and Waterways Sarbananda Sonowal.

It has been learned that India's 10-year bilateral contract with Iran for the operation of Chabahar Port is expected to attract an investment of around $370 million. This investment consists of a direct contribution of $120 million from India for infrastructure development and a $250 million line of credit to Iran.

India's commitment of $120 million for port development will be utilised to acquire advanced equipment like rail-mounted quay cranes, rubber-tyred gantry cranes (also known as transtainers), reach stackers, and forklifts. Additionally, these funds will be allocated towards the improvement of associated infrastructure.

According to several officials familiar with the matter, the agreement, which spans a decade, has the potential for extension upon mutual agreement, signifying a medium-term objective for India as it proceeds with operations.

Moreover, significant concerns, including the absence of consensus on an arbitral framework, have been resolved. This issue stemmed from a previous deadlock in negotiations when Iran refused to accept an international arbitration framework, citing the necessity for a constitutional amendment. Conversely, India insisted on including the arbitration clause to ensure transparency in resolving disputes.

Officials stated that under the agreement signed, disputes requiring arbitration will be referred to the Singapore International Arbitration Centre.

Additionally, a concern regarding cargo movement emerged during the later stages of the negotiation process. According to sources, Iran insisted on a minimum guaranteed traffic (MGT), a standard provision in concession-based port agreements. Failure to meet the minimum cargo requirement could lead to penalties for the concessionaire.

The signing of the Long Term Bilateral Contract on Chabahar Port Operations occurred in the presence of HE Mehrdad Bazrpash, Minister of Roads & Urban Development, Iran, and India's Minister of Ports, Shipping, and Waterways Sarbananda Sonowal. It has been learned that India's 10-year bilateral contract with Iran for the operation of Chabahar Port is expected to attract an investment of around $370 million. This investment consists of a direct contribution of $120 million from India for infrastructure development and a $250 million line of credit to Iran. India's commitment of $120 million for port development will be utilised to acquire advanced equipment like rail-mounted quay cranes, rubber-tyred gantry cranes (also known as transtainers), reach stackers, and forklifts. Additionally, these funds will be allocated towards the improvement of associated infrastructure. According to several officials familiar with the matter, the agreement, which spans a decade, has the potential for extension upon mutual agreement, signifying a medium-term objective for India as it proceeds with operations. Moreover, significant concerns, including the absence of consensus on an arbitral framework, have been resolved. This issue stemmed from a previous deadlock in negotiations when Iran refused to accept an international arbitration framework, citing the necessity for a constitutional amendment. Conversely, India insisted on including the arbitration clause to ensure transparency in resolving disputes. Officials stated that under the agreement signed, disputes requiring arbitration will be referred to the Singapore International Arbitration Centre. Additionally, a concern regarding cargo movement emerged during the later stages of the negotiation process. According to sources, Iran insisted on a minimum guaranteed traffic (MGT), a standard provision in concession-based port agreements. Failure to meet the minimum cargo requirement could lead to penalties for the concessionaire.

Next Story
Building Material

Trishakti Industries Secures Major Tata Steel Order

Trishakti Industries Limited has secured a significant order from Tata Steel Ltd for the deployment of advanced machinery and skilled manpower at one of the steel major’s flagship project sites.The contract, awarded domestically, involves the hiring of machines along with manpower, with execution set to be completed by 20th September 2025. The initial contract period is 12 months. The total fresh capital expenditure for the project is approximately Rs 1.5 million, while the overall contract value is expected to exceed Rs 5 million inclusive of taxes.This order marks a reinforcement of top-ti..

Next Story
Real Estate

Kalpataru Projects Secures Rs 27.2 Billion in New Orders

Kalpataru Projects International Limited (KPIL), a leading EPC player in the power transmission and distribution (T&D) and civil infrastructure sector, along with its international subsidiaries, has received new orders and notifications for projects worth approximately Rs 27.2 billion.The projects include:Power Transmission & Distribution (T&D) initiatives in India and overseas.Buildings and Factories (B&F) projects in India.Manish Mohnot, MD & CEO of KPIL, said, “We are delighted with the strong ordering momentum in our T&D and B&F businesses. The orders include ..

Next Story
Infrastructure Energy

ACME Solar Secures Rs 38.92 Billion Financing for Barmer Project

ACME Solar Holdings rose 2.05 per cent to Rs 308.50 after its wholly owned subsidiary, ACME Venus Urja, secured long-term project financing of Rs 38.92 billion from the State Bank of India (SBI).The funds will be utilised for the development and construction of a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan. The loan repayment is structured over 19 years.The Barmer-based FDRE project is contracted with NHPC at a tariff of Rs 4.64 per unit. It will integrate solar power generation with a Battery Energy Storage System (BESS) to ensure higher reliability and d..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?