Current Affairs: Passage of the Day - 13 May 2024 | Current Affairs: Daily, Weekly & Monthly - CLAT PDF Download

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Ports and shipping minister Sarbananda Sonowal left for Iran on Monday for the signing of a crucial long-term agreement for India’s operations at the strategic Chabahar port, people familiar with the matter said.
The long-term agreement, which will be valid for 10 years and will be extended automatically, was being negotiated by the two sides over the past three years or so and had been primarily held up by differences on a clause related to arbitration.
It will replace an initial pact inked in 2016 that covered India’s operations at Shahid Beheshti terminal of Chabahar port and has been renewed on an annual basis.
Sonowal flew from New Delhi to Tehran on a special Indian Air Force (IAF) flight and people familiar with the matter on both sides said his visit was linked to the signing of the 10-year agreement for operations by state-run India Global Ports Limited (IGPL) Shahid Beheshti terminal.
“The long-term agreement on the Shahid Beheshti terminal is expected to be signed today [Monday],” said a person familiar with the latest developments in Tehran.
Sonowal’s visit amid India’s general election emphasises the importance attached by New Delhi to Chabahar port and its place in ambitious plans to forge greater connectivity with Iran, Afghanistan and the landlocked Central Asian states.
The move also comes at a time when China has been showing greater interest in investments in ports and other coastal infrastructure in Iran, with Tehran pressing Beijing to take up the development of other terminals at Chabahar port.
Both India and Iran see Chabahar as a hub for the International North–South Transport Corridor (INSTC) that will allow shipping companies to use an alternative route that bypasses the sensitive and busy Persian Gulf and Strait of Hormuz.
HT had first reported in September 2022 that India and Iran were working on a long-term agreement for IGPL’s operations at Chabahar port. The only issue holding up the agreement at that time was related to the jurisdiction for arbitration of differences on any matters. Under Iran’s Constitution, such arbitration cannot be referred to foreign courts, and a proposal under the agreement required a constitutional amendment.
It was not immediately clear how the two sides had worked out these differences, though Iranian officials had told HT some time ago that this issue had been resolved. Iranian ambassador Iraj Elahi told HT last month that the long-term agreement was ready, and India’s ports and shipping minister had been invited to Tehran for its signing, though it was unclear whether he would travel during the general election.
Since IPGL began operations at Shahid Beheshti terminal in late 2018, it has handled more than 4.8 million tonnes of bulk cargo, including trans-shipments from Australia, Bangladesh, Brazil, Germany, Russia and the United Arab Emirates.
India took up development of Shahid Beheshti terminal under a tripartite agreement on Chahbahar signed with Iran and Afghanistan in May 2016. Afghanistan is effectively no longer part of the arrangements since the takeover of the country by the Taliban in 2021, though Chabahar port has benefited from a US waiver on sanctions imposed on Iran.
India pledged it would invest $85 million in the terminal and has so far supplied cranes and other equipment worth some $24 million.
[Excerpt from Hindustan Times “India To Manage Iran’s Chabahar Port For Ten Years” Dated 13/05/24]

Q1: What is the primary strategic objective of India's engagement with Chabahar Port in Iran?
(a) To enhance trade ties with China
(b) To establish a direct route to Afghanistan and Central Asia
(c) To bolster Pakistan's influence in the region
(d) To support maritime security in the Indian Ocean

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Q2: Which international corridor does Chabahar Port play a pivotal role in?
(a) Silk Road Economic Belt
(b) Belt and Road Initiative
(c) International North-South Transport Corridor (INSTC)
(d) Suez Canal Economic Zone

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Q3: What is the strategic significance of the Shahid Beheshti Terminal within Chabahar Port?
(a) It facilitates trade with China
(b) It connects Iran to South America
(c) It boosts trade connectivity with Afghanistan and Central Asia
(d) It supports oil shipments through the Strait of Hormuz

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Q4: Which Indian minister is scheduled to attend the signing ceremony for the 10-year management agreement for Chabahar Port in Iran?
(a) Prime Minister Narendra Modi
(b) Defense Minister Rajnath Singh
(c) Shipping Minister Sarbananda Sonowal
(d) Foreign Minister S. Jaishankar

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Q5: What is the key purpose of the forthcoming 10-year agreement for Chabahar Port between India and Iran?
(a) To reduce India's investments in the port
(b) To provide an annual renewal contract for operational control
(c) To establish stability and an extended framework for India's operational control
(d) To transfer operational control of the port to Pakistan

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