Under the agreement signed last year between the two countries, India will equip and operate two berths in the first phase of development at Chabahar Port and extend a credit line of $150 million through its external lending arm. Both berths will commence operations within 18 months of the signing of a final contract. India will make a capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a ten year lease following which the ownership of equipment will be transferred to Iran. The Port of Chabahar is the only Iranian port with direct access to the ocean. The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia, bypassing Pakistan.
