Chabahar port agreement 'historic': Pradhan

Describing the signing of Chabahar port pact as "historic", Oil Minister Dharmendra Pradhan today said the Prime Minister Narendra Modi's visit to Iran will help take the bilateral ties to new heights.
India and Iran today inked a dozen agreements ranging from a contract to develop the strategic Chabahar port to an initial pact to set up an aluminium plant and one on laying a railway line to give India access to Afghanistan and Central Asia.
"Today will be remembered as a historic day for India, Iran and Afghanistan relations. Chabahar is moving towards a reality. I have been to Chabahar last month. Today's visit of our Prime Minister to Iran will take our relationship to new heights. Chabahar is a gateway," Pradhan said after unveiling a new refining technology at Honeywell's India Technology Centre here.

In Tehran today, the key agreement signed was a contract for development of Phase I of the Chabahar port on southern coast of Iran by an Indian joint venture. Over Rs 1 lakh crore investment is expected to happen in Chabahar free trade zone.
Chabahar is about 100 km from the Chinese-run Gwadar port in Pakistan, which is part of China's USD 46 billion plan to develop China-Pakistan Economic Corridor aimed at opening new trade and transport routes across Asia.
The Indian joint venture company will invest more than USD 85.2 million in development of the port. India's Exim Bank will provide a credit line of another USD 150 million.

India is blocked from land access to Afghanistan and through it to the central Asia countries because of opposition from Pakistan, which sees India's expansive diplomacy in the region as a threat.

India, Afghanistan and Iran separately signed an agreement to set up a trade and transport corridor, with Chabahar as the hub.
Road and rail links are being built so that the land-locked Afghanistan can get access to the Iranian port as an alternative to the Pakistani port of Karachi.
About the Honeywell facility, Pradhan said, "Honeywell technology will help us upgrade from BS IV to BS VI (emission norms). We expect more fruitful relationship with Honeywell in the future."

The technology is one of several being developed at the centre by Honeywell UOP. The company has invested about USD 40 million at the facility, which is one of the main technology development hubs for Honeywell UOP outside the USA.
The technology can allow Indian refiners to get more from each barrel of oil, helping reduce imports of crude oil while producing environmentally preferable diesel fuels.
India is aiming at reducing its crude imports by 10 per cent by 2022.