News Report: Indian Involvement in Iran's Chabahar Port Hangs in Balance

India’s EXIM bank is still awaiting complete application form from Iran for the disbursement of $150 million loans even after 15 months of signing the loan contract.

New Delhi (Sputnik) — India's ambition to bypass Pakistan to enter resource-rich Central Asia & Afghanistan hangs in balance as Iran is yet to send the complete application form for sourcing $150 million loans from India's EXIM bank. The initial agreement for the loan was signed in May last year and since then, EXIM bank has been sending repeated reminders but Iran is yet to respond. The completed application form is a pre-condition for disbursement of the loan.

India's Minister for Shipping & Port Development Nitin Gadkari, who had visited Tehran last month to break the deadlock over the loan agreement. However, he is still waiting for Iran to send it the completed application form to the EXIM Bank of India for providing the first tranche of the loan from the $150 million credit line.

News Report: India, Iran Agree to Set Aside Differences for Chabahar Port Project

Chabahar port has been termed as ‘Golden Gate’ for India as it will open up trade access with Afghanistan, Central Asia and Eurasia.

New Delhi (Sputnik) – Notwithstanding the recent stalemate over a number of issues, India has reached out to Iran in a bid to remove bottlenecks in the strategically important Chabahar port project. India’s Minister for Road Transport and Highways, Nitin Gadkari, who was in Tehran to represent India at inauguration ceremony to mark President Hassan Rouhani's second term, met several top officials of the Iran government and discussed the issues related to trade and delayed infrastructure projects.

The two sides have agreed to create a special group which will suggest ways to expedite the Chabahar port project.

“Regarding ports and rail connectivity projects, we have identified the problems and bottlenecks. We have decided to make some groups between the two countries to solve the issues,” Nitin Gadkari told the Press Trust of India.

News Story: Pakistan Gives China a 40-Year Lease for Gwadar Port

On April 20, Pakistan’s minister for ports and shipping announced that his ministry has given a Chinese firm a forty-year lease for the strategic Port of Gwadar. 

The lessee, state-owned China Overseas Port Holding Company, has been building out the port’s infrastructure since 2013. Under its new long-term contract, it will retain over 90 percent of revenue from Gwadar’s marine operations, plus 85 percent of the revenue from the management of an adjacent free zone. It will also benefit from the deep tax exemptions that Pakistan has granted to Chinese companies for projects related to the China Pakistan Economic Corridor (CPEC), a network of transportation infrastructure stretching from the Arabian Sea to the Chinese border. 

“We hope to create a new economic development model for the port by transplanting China’s experience in building special zones or economic development areas to Pakistan, in a bid to drive the country’s industrial transformation,” said COPHC CEO Zhang Baozhong, in comments to China Daily. 

Read the full story at MarEx