Andalib Akhter / New Delhi
India and Iran signed nine important agreements in different fields including double taxation avoidance, easing visa rules and cooperation on medical sector, apart from a maritime agreement on Chabahar Port development. The agreements followed after delegation-level talks between Prime Minister Narendra Modi and Iranian President Hassan Rouhani here today.
Earlier the leaders held “substantive” talks to boost cooperation in key areas of security, trade and energy. The two leaders also deliberated on regional situations during their wide-ranging talks.
Prime Minister Narendra Modi and Iran President Hassan Rouhani jointly released a postal stamp to mark the relations between India and Iran. The stamp shows ships at Iran’s Chabahar port and India’s Kandla.
Addressing a joint press event with the visiting Iran President Rouhani, Modi said the visit by the Iranian president shows how the two sides want to deepen cooperation in key areas, including connectivity.”
Appreciated the way the Iranian leader provided leadership in developing strategically-important Chabahar Port, Modi said they discussed threats posed by terrorism, drug trafficking and other challenges. The two sides also exchanged instrument to ratify the extradition treaty as well as to simplify visa process.
“Both leaders welcomed the lease contract for Shahid Beheshti port of Chabahar during interim period between port and Maritime Organization (PMO), Iran and India Ports Global Limited (IPGL). And further directed that the Coordination Council should meet within the timelines stipulated in the Trilateral Agreement,” according to the joint statement released at the end of talks.
The agreement means Iran is leasing a part of the area of the multipurpose and container terminal for 18 months to take over operations of existing port facilities in the first phase of the port development project. India has committed $85 million for the development of the Shahid Beheshti Port.
International North- South Transport Corridor (INSTC) was also discussed and both sides stressed on the need for inclusion of Chabahar within its framework. Iran will hold an early meeting of the INSTC Coordination Meeting in Tehran.
With a view to fully utilize the potential of the Chabahar Port and its connectivity to Afghanistan and Central Asia, India has conveyed its readiness to support the development of Chabahar- Zahedan Rail line. IRCON, India and CDTIC, Iran who are engaged in discussions, are expected to finalise the technical parameters and financing options for the project in a time bound manner.
In his address, Rouhani thanked the Indian government for investment which helped in the development of key infrastructure in Iran, particularly connected to Chabahar, and said that similar cooperation will be seen in areas of energy, natural gas, petroleum and petro products.
Briefing the media at the end of talks between the two leaders, Deepak Mittal, Joint Secretary (PAI), MEA said that, “Both sides were satisfied with the trade and the double taxation avoidance treaty inked today was after decade long discussions.”
Adding, “India’s accession to TIR Convention and Ashgabat Agreement was welcomed as additional steps at enhancing regional connectivity and linking regional centres of economic growth.”
New Delhi has allowed investment in Indian rupees in Iran. The Indian move will hugely help the Iranian economy as it will draw in more Indian investment into Iran. Under this scheme, if an Indian businessman wants to invest a certain amount in rupees, he can deposit the money in rupees in the bona fide concerned Iranian account in one of the Indian banks and the equivalent amount of Iranian rials will then be deposited in the venture in Iran.
Trade bodies of India including FICCI, PHD Chambers and ASSOCHAM and Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) also inked MoUs on the sidelines.
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