India remains engaged with the US: MEA on Chabahar port project
New Delhi (PTI): India is mulling various options on its engagement in the development of the strategically-located Chabahar port in Iran against the backdrop of the Trump administration threatening a 25 per cent additional tariff on countries doing business with Tehran.
India is a major partner in development of the Chabahar port, located in the Sistan-Balochistan province Iran's southern coast.
In September last year, the US imposed crippling economic sanctions on Iran but had granted India a six-month exemption from the punitive measures on the Chabahar port project. The waiver will come to an end on April 26.
External Affairs Ministry spokesperson Randhir Jaiswal on Friday said New India is engaged with the US on the issue.
His remarks in answering a question came amid reports that New Delhi is looking at withdrawing from it in view of fresh American tariffs on nations having trade relations with Iran.
"As you are aware, on October 28, the US Department of Treasury had issued a letter outlining the guidance on the conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement," Jaiswal said.
Jaiswal also mentioned India's long-standing relations with Iran and said New Delhi is closely following the evolving situation in the country. Iran has been witnessing massive anti-government protests in which over 2,500 people were killed.
It is learnt that India is in the process of transferring approximately USD 120 million -- the amount it committed for the project -- as part of a move to end its direct exposure to the Chabahar port project, people familiar with the matter said.
A possibility to create a new entity to carry forward the development of the Chabahar port is also being considered, they said.
This option will end the Indian government's exposure to the project, but in a way it will ensure continuation of New Delhi's support, the people explained.
In September last year, the Trump administration announced its decision to revoke the 2018 sanctions waiver with regard to the Chabahar port in Iran.
Weeks after announcing the revocation of the sanctions, Washington said it is extending six months' waiver from the punitive measures to India.
As tensions between Washington and Tehran escalated again, President Donald Trump announced a fresh 25 per cent tariff on countries doing business with Iran.
The new tariff is likely to have a "minimal impact" on India, government sources said on Tuesday.
Jaiswal said the volume of two-way trade between India and Iran was USD 1.6 billion last year. Out of the total, India's exports was to the tune of USD 1.2 billion and import was of USD 0.4 billion.
The Chabahar port is being developed by India and Iran to boost connectivity and trade ties. Both the countries are also strongly pitching for making Chabahar port an integral part of the International North-South Transport Corridor (INSTC).
The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
Jaiswal also said that the Indian embassy in Tehran is in touch with the Indians in Iran.
"We are keeping a close watch on the situation there, and as far as our citizens are concerned, we are committed to doing whatever is necessary for their well-being," he said.
"Approximately 9,000 of our citizens are currently residing in Iran. The majority of them are students," he said.
India has already issued a number of advisories to the Indian nationals in view of the current situation in that country.
"In these advisories, we have advised our citizens in India not to travel to Iran at this time, and we have advised Indian citizens residing in Iran to leave the country by whatever means are available," he said.
India on Wednesday asked all its nationals currently residing in Iran to leave by available means after the security situation deteriorated further.
New Delhi also strongly advised its nationals to avoid travelling to Iran.
There has been rising tensions in Iran and the region after US President Donald Trump indicated military action if Tehran continues its crackdown on the protesters.
"If they hang them, you're going to see some things...We will take very strong action if they do such a thing," the US president told CBS News.
In a message to the protesters, Trump said on Tuesday that "help is on the way".
The protests began late last month in Tehran after the Iranian currency rial plunged to record lows. The protests have since spread to all 31 provinces, evolving from an agitation against economic woes to a demand for political change.
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
