Salman Khurshid's Tehran visit signals change in stance

{mosimage}In a significant shift of stance, India is warming to Iran again, despite pressure from the United States and the European Union to boycott the country because of its controversial nuclear programme.

External Affairs Minister Salman Khurshid, who will be in Iran for an economic meet from May 3 to 5, may announce Indian plans to help Iran rebuild its port at Chabahar during his visit.

A $100 million assistance programme is likely to be announced.

Ministry officials said it was extremely important to invest in Chabahar, both to secure Iran's friendship, as well as to counter China or Pakistan.

Chabahar is roughly 80 km from Pakistan's Gwadar port, which is operated by a Chinese company, giving Beijing a strategic advantage.

India proposes to link Afghanistan to the rail line into Central Asia, bypassing Pakistan, helping the landlocked country reduce its dependence on Pakistan's Karachi port.

The announcement is expected to improve India-Iran ties which cooled after Delhi endorsed the US and EU's concerns and voted against Tehran at the International Atomic Energy Agency.

Earlier, the public sector General Insurance Corporation agreed to insure oil imports from Iran. About 12 per cent of India's oil imports come from the country.

India, Iran and Afghanistan have agreed to give Indian goods heading for central Asia and Afghanistan preferential treatment and tariff reductions at Chabahar.