JNPT, KPT to hold 60:40 equity stake in SPV to build Iran’s Chabahar port
15 Dec 2014
1
Jawaharlal Nehru Port Trust (JNPT) will have 60 per cent equity stake in the special purpose vehicle (SPV) to be formed for developing the Chabahar port in south-eastern Iran while Kandla Port Trust (KPT) would hold the remaining.
Chabahar will be India's first foreign-port project.
In October 2014, the government set up a cell to accelerate work and monitor progress of the Chabahar port project in Iran, so that it is completed within a deadlines (See: Govt creates cell for Iran's Chabahar port project).
The formation and registration of the SPV, to be named Indian Ports Global, is expected to be completed this month. "The SPV will be registered soon. We are awaiting the nomination of a third director from the shipping ministry," a JNPT official said.
The chairmen of JNPT and KPT, respectively, along with a nominated director from the union shipping ministry, would be part of the company's board of directors.
Once the SPV is formed, the governments of India and Iran would be signing a memorandum of understanding in early 2015.
The Indian joint venture will have a local Iranian partner and / or an Indian private sector partner to serve as the vehicle for India's participation in the development of the port.
The Indian and Iranian sides could enter into subsequent negotiations for participation in the construction, equipping and operating of terminals in Phase-II on BOT basis, subject to the Indian side's satisfactory performance in Phase-I.
The Iranian side will make efforts to provide free trade zone conditions and facilities.
Chahbahar port, located in the Sistan-Baluchistan Province on Iran's south-eastern coast, is of strategic utility for India. It lies outside the Persian Gulf and is easily accessed from India's western coast.
The Indian side will transfer ownership of the port equipment to Iran's port and Maritime Organisation (P&MO) without any payment at the end of the tenth year.
The agreement can be renewed with mutual agreement at the end of 10 years.
The union cabinet had, in October, approved a proposal wherein an Indian joint venture will invest $85.21 million to develop Chahbahar Port and operate the port for 10 years through a lease agreement.
The port project has strategic significance as it would give India access to Afghanistan, Central Asia and beyond via Iran, a safer route considering the hostile terrain of Pakistan, the current land route to Afghanistan.
Originally envisioned by the government led by Atal Bihari Vajpayee in 2003, the project has been delayed over the years.
Chabahar will be India's first foreign-port project.
In October 2014, the government set up a cell to accelerate work and monitor progress of the Chabahar port project in Iran, so that it is completed within a deadlines (See: Govt creates cell for Iran's Chabahar port project).
The formation and registration of the SPV, to be named Indian Ports Global, is expected to be completed this month. "The SPV will be registered soon. We are awaiting the nomination of a third director from the shipping ministry," a JNPT official said.
The chairmen of JNPT and KPT, respectively, along with a nominated director from the union shipping ministry, would be part of the company's board of directors.
Once the SPV is formed, the governments of India and Iran would be signing a memorandum of understanding in early 2015.
The Indian joint venture will have a local Iranian partner and / or an Indian private sector partner to serve as the vehicle for India's participation in the development of the port.
The Indian and Iranian sides could enter into subsequent negotiations for participation in the construction, equipping and operating of terminals in Phase-II on BOT basis, subject to the Indian side's satisfactory performance in Phase-I.
The Iranian side will make efforts to provide free trade zone conditions and facilities.
Chahbahar port, located in the Sistan-Baluchistan Province on Iran's south-eastern coast, is of strategic utility for India. It lies outside the Persian Gulf and is easily accessed from India's western coast.
The Indian side will transfer ownership of the port equipment to Iran's port and Maritime Organisation (P&MO) without any payment at the end of the tenth year.
The agreement can be renewed with mutual agreement at the end of 10 years.
The union cabinet had, in October, approved a proposal wherein an Indian joint venture will invest $85.21 million to develop Chahbahar Port and operate the port for 10 years through a lease agreement.
The port project has strategic significance as it would give India access to Afghanistan, Central Asia and beyond via Iran, a safer route considering the hostile terrain of Pakistan, the current land route to Afghanistan.
Originally envisioned by the government led by Atal Bihari Vajpayee in 2003, the project has been delayed over the years.
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