PM Modi, who had a few weeks back visited Shite-nation's arch rival Saudi Arabia, is due to land here this evening and will engage with Iranian top leadership, including Supreme Leader Ayatollah Ali Khamenei, to boost bilateral trade, energy and strategic ties.

After his arrival, he will head straight to a local gurudwara where he is scheduled to address people of Indian origin. He will hold bilateral talks with President Hassan Rouhani after a ceremonial welcome on Monday morning, which will focus on regional connectivity, infrastructure and energy as well as terrorism and extremism in the region.

Also, discussions would feature mode of clearance of the USD 6.4 billion Indian refiners like Essar Oil and MRPL owe to Iran in past oil dues. Ahead of the visit, refiners have cleared USD 1.2 billion.

There will be signing of two contracts -- one by Indian Ports Global Pvt, a joint venture between the Jawaharlal Nehru Port Trust and the Kandla Port Trust, with Arya Bandar Company of Iran for developing two terminals and five multi-cargo berth in Phase-1 of the Chabahar port project.

Chabahar in South-East Iran will help skip Pakistan and open up a route to land-locked Afghanistan with which New Delhi has developed close security ties and economic interests.

From Chabahar port, the existing Iranian road network can link up to Zaranj in Afghanistan, about 883 km from the port.

The Zaranj-Delaram road constructed by India in 2009 can give access to Afghanistan's Garland highway, setting up road access to four major cities -- Afghanistan-Herat,  andahar, Kabul and Mazar-e-Sharif.

Indian investment in phase-1 will be in excess of USD 200 million, including USD 150 million line of credit from Exim Bank, an agreement for which would also be signed during the visit.

Besides signing of commercial contract for Chabahar Phase-1, Modi will witness signing of a trilateral agreement on transport and transit corridor among India, Afghanistan and Iran.

Sources said talks will feature Indian state-run firms securing rights to develop the offshore Farzad-B gas field, which was discovered by ONGC Videsh.

The trilateral agreement is seen to significantly enhance prospects of India's connectivity with Afghanistan, Central Asia and beyond such as the North-South corridor. Modi and Iranian President are also likely to review peace and stability in the region which faces  everal challenges, including terrorism and violent extremism, besides cyber crime and maritime security.

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