India’s Ministry of Shipping on Friday stated that it has increased the current 40 per cent discount for transportation of cargo between India and Chabahar port in Iran for one more year as a measure to boost trade and encouragement movement through the channel.
“The Ministry of Shipping has extended the current concessional rate of 40 per cent discount for coastal movement of cargo and vessel related charges, for a period of further one year to clients for cargo being handled at Jawaharlal Nehru Port and Deendayal Port from/to Shahid Beheshti Port, Chabahar, Iran,” an official statement said.
The levy of concessional vessel related charges (VRC) will be applied proportionately, subject to vessel loading at least 50 twenty-foot equivalent units (TEUs) or 5000 MT cargo to ShahidBeheshti Port.
The ports will coordinate with Indian Ports Global Ltd and jointly evolve a standard operating procedure (SOP) to ensure that discounts are given to cargo is actually discharged or loaded at ShahidBeheshti terminal of Chabahar Port, the statement read.
The aim of the extension of discount period is to promote the trade through Shahid Beheshti Port of Chabahar, Iran. It would give a boost to coastal movement of cargo being handled at Jawaharlal Nehru Port and Deendayal Port from/to Shahid Beheshti Port, the statement added.
Chabahar port offer India an alternative route for its trade with Europe, which is currently carried out primarily via the longer and more expensive Red Sea-Suez Canal-Mediterranean Sea route. Furthermore, Chabahar has been exempted from US sanctions on Iran due to the port’s importance to India, and its role as a supply route to Afghanistan.