The strategic port of Chabahar will be handed over to an Indian company within a month as per an interim pact between Iran and India in Delhi, reports PTI.
Iranian Minister of Roads and Urban Development Abbas Akhoundi is here on the invitation of the Indian government to participate in the Mobility Summit organised by the NITI Aayog.
The first phase of the Chabahar port − seen as a counter to Pakistan's Gwadar port, which is around 80km from the Iranian port − was inaugurated in December 2017 by Iranian President Hassan Rouhani and it opens a new trade route for India connecting it to Afghanistan and beyond, bypassing Pakistan.
It will provide India, Iran and Afghanistan with an opportunity to increase trade and also with other countries in central Asia after Pakistan denied India permission to access routes through its territory to connect with Afghanistan.
Under an earlier agreement signed between the countries, India is to equip and operate two berths in Chabahar port phase-1 with an investment of $85.21 million and an annual revenue expenditure of $22.95 million on a 10-year lease.
When asked what will be the impact of US sanctions on the export of Iranian oil to India, Akhoundi said he hoped the oil trade to continue.
"The sanctions will impact trade between the two countries but sale of oil to India will not stop. The Indian side has made it clear that it is committed to buying oil from us and we have also expressed our desire to continue buying rice and other food material besides industrial material from the Indian side," the minister told PTI.
India is the second largest importer of Iranian oil after China and the US sanctions on the Iranian petroleum industry start in November.
"I will not deny that there has been some impact of the US sanctions on trade between our countries but I would like to emphasise that the US can't stop this relationship between the Iran and India," he added.
The minister welcomed Indian firms wanting to develop the Farzad-B gas field in Iran.
"Though the Indian side is very keen to invest there we are yet to receive the project proposal," the minister said.
