The Cabinet has agreed to increase the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to Rs.3000 crore from Rs. 900 crore.
This will be done by utilising the Export Development Fund (EDF). The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF, said a statement by Cabinet.
The proposal will promote the country’s exports with Iran. It will also deepen India’s relationship with Iran as a strategic partner.