The Cabinet, chaired by Prime Minister Narendra Modi, cleared the proposal to develop the Chabahar port in Iran with a project cost of USD 150 million, sources said.

The strategic port, which is located off Iran's south eastern coast will provide India a sea-land access route to Afghanistan bypassing Pakistan.

In May last year, Shipping Minister Nitin Gadkari had visited Tehran where India and Iran signed a pact to develop the Chabahar port.

After the MoU for development and operation of two terminals at Chabahar Port, discussions were on for concluding the agreements which include possibility of India taking over the development and operation of Phase II of Chabahar Port.

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