Iran, currently negotiating with global powers for its return to the mainstream global economic scene, could offer India access to its port of Jask as a base for strategic oil reserves and a standalone gas pipeline to meet New Delhi’s growing energy demands.
The proposal was put forward by Iranian ambassador to India Ali Chegeni at a roundtable held this week on the future of bilateral ties, amid Tehran’s efforts to negotiate revival of the nuclear deal that would also bring the Persian Gulf country into the economic mainstream.
The envoy said Iran had opened Bandar-e-Jask — a port on the mouth of the strategically located Strait of Hormuz — for Indian and Chinese energy investments. He suggested that India build its strategic oil reserves at this port and even construct a pipeline that originates from Bandar-e-Jask. The strategic crude oil reserve could meet India’s emergency needs in case of disruptions in supply, according to Chegeni.
This proposed pipeline could bypass Pakistan unlike the Iran-India-Pakistan pipeline that never took off.
Chegeni anticipated that it was only a matter of time before sanctions against Iran were lifted, following an early revival of an updated Joint Comprehensive Plan of Action, or the Iran nuclear deal, hinting that this would open up opportunities for India in the energy-rich country.
The Iranian envoy sought Indian investments in the Chabahar port free trade zone in the backdrop of probable lifting of sanctions in the coming months and he also referred to the Iran-India-Afghanistan-Uzbekistan quadrilateral that is taking shape to connect South Asia and Central Asia via the Chabahar Port.
India, Iran and Uzbekistan have set up a trilateral for joint use of the port. India and Iran have also formed a trilateral with Afghanistan for the same port which would play a key role in safeguarding New Delhi’s interests in Kabul.
Chegeni said India could revive plans for setting up petrochemical and fertiliser plants either independently or through joint ventures with Iranian public-private companies in the Chabahar free trade zone.
India is planning an expansion of Iran’s strategically located Chabahar port through the supply of two more cranes this year. These are in addition to two similar cranes New Delhi had supplied earlier this year under a contract valued at more than $25 million. There are also plans to procure rail-mounted cranes.
Plans are also afoot to link the Chabahar port with the International North South Transport Corridor to give an impetus to trade with Russia and Eurasia.
The roundtable that was addressed also by other senior Iranian diplomats was organised by an upcoming think tank, Tillotama Foundation.
