Q1. Which facility in Iran is being developed by India to enhance trade with Central Asia?
- (a) Bandar Abbas commercial wharf
- (b) Chabahar Port transit facility
- (c) Qeshm Island logistics centre
- (d) Bushehr Port maritime terminal
Answer & solution
Answer: (b) Chabahar Port transit facility
India is developing the Shahid Beheshti terminal at Chabahar Port in Iran's Sistan-Baluchestan province to reach Afghanistan and Central Asia by a route that bypasses Pakistan.
It is India's first overseas port project.
Revision note — Chabahar Port
• Chabahar lies on the Gulf of Oman, outside the Strait of Hormuz, about 170 km west of the Chinese-built Gwadar port in Pakistan.
• The trilateral India-Iran-Afghanistan agreement on Chabahar was signed in May 2016 during Prime Minister Modi's visit to Tehran.
• India's first consignment through the port, wheat to Afghanistan, was shipped in October 2017.
• India Ports Global Limited (IPGL) took over operations in December 2018.
• On 13 May 2024 IPGL signed a 10-year contract with Iran's Ports and Maritime Organisation for the Shahid Beheshti terminal.
• Under the 2024 contract India invests about USD 120 million in the terminal and offers a USD 250 million credit line for connected infrastructure.
• Chabahar is India's gateway to the International North-South Transport Corridor (INSTC), the multi-modal route linking Mumbai to Iran, Central Asia and Russia.
• Bandar Abbas is Iran's largest port on the Strait of Hormuz; Bushehr on the Persian Gulf hosts Iran's nuclear power plant; Qeshm is the largest island in the Persian Gulf.
Do not mix these up
• Chabahar vs Gwadar — Chabahar is developed by India in Iran; Gwadar is developed by China in Pakistan under CPEC.
• Gulf of Oman vs Persian Gulf — Chabahar is on the Gulf of Oman, so shipping to it need not pass through the Strait of Hormuz; Bandar Abbas and Bushehr are on the Persian Gulf side.
Also asked from this topic: the corridor that uses Chabahar to reach Central Asia (International North-South Transport Corridor); the first commodity India sent to Afghanistan through Chabahar in 2017 (wheat).