Indian industrialists have welcomed a recent agreement between Tehran and New Delhi for the development of Iran’s Chabahar Port.

The Federation of Indian Chambers of Commerce and Industry (FICCI) in a statement hailed the project for providing an easier access route to Afghanistan.

The FICCI in said in its statement that it has always been in the forefront of Afghanistan's reconstruction and development efforts, reported the New Delhi-based news site MeriNews.

On May 7, Iran and India signed a basic agreement to develop Chabahar port in Iran’s southeastern province of Sistan-Baluchestan.

The agreement was reached following talks between visiting Indian Road Transport and Highways Minister Nitin Gadkari and Iranian Minister of Roads and Urban Development Abbas Ahmad Akhoundi.

India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest $85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal, the report by MeriNews added.

The Indian side will transfer ownership of the equipment to Iran's Port and Maritime Organization (P&MO) without any payment at the end of the tenth year.

This came in face of opposition by the United States that had warned India and other countries not to rush into doing business with Iran until the country’s nuclear talks are finished by a June 30 deadline.

Located on the confluence of the Indian Ocean and the Sea of Oman, Chabahar is India's first foreign port project. Once completed, the project would enable India to send its goods from the port to Afghanistan, Central Asia and beyond.

According to reports by Indian media, New Delhi plans to build a road-railroad network from Chabahar to Milak, situated on the Afghanistan-Iran border, which can be connected to the India-built 223-kilometer Zaranj-Delaram road in Afghanistan, also known as Route 606.

By Press TV