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India hopes to start full operations soon at Iran's Chabahar port: minister

Reuters  |  NEW DELHI 

NEW (Reuters) - hopes to soon start full operations at a portion of Iran's port of as the two countries are close to resolving various disputes including financing, the country's said on Tuesday.

The Indian-backed port complex on Iran's coast along the Gulf of is being developed as a for land-locked

In May 2016, signed a deal with to develop two terminals with five berths at the Shahid Beheshti area in

Under the agreement, would build a 600-metre (1,969 feet) cargo terminal and a 640-metre container terminal. However, only a portion of the two berths have been finished because of deteriorating relations between the and after the election of in November 2016 that culminated with the reimpositon of economic sanctions last year.

In December, India took over operations at part of the Shahid Beheshti port, according to a statement from the Ministry of Shipping released on Monday.

On Tuesday, Nitin Gadkari, India's of Road Transport, met with Iran's in New After the meeting he said the two sides were close to resolving various issues, including over payment mechanisms to overcome the U.S. sanctions.

"Regarding the and others, already the financial arrangement is ready," said Gadkari. "There are some problems but we have resolved the issue."

India has already received a shipment of corn from at Shahid Beheshti with the help of Iranian operators, Gadkari told reporters.

India, Iran's top after China, will pay for crude imports in rupees to will use the funds for importing goods from India.

Zarif said India's and Iran's Pasargad will start transactions despite the U.S. sanctions.

Mohammad Amir Davoud, at said his bank will open its first Indian branch in western city of in three to four months to facilitate transactions.

Gadkari also said had shown interest in buying rails from India and New had already placed a $85 million for the port. Iran had shown interest in buying rails and 250 to 300 locomotive engines from India, he said.

Indian firm is building a railway from Chabahar.

The new port could potentially open the way for millions of dollars in trade for and cut its dependence on Pakistan's port of Gwadar, located 166 km (103 miles) to the east.

(Reporting by Nidhi Verma; Editing by Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 17:02 IST