Chabahar Free Trade–Industrial Zone (CFZ) (Persian: منطقه آزاد تجاری-صنعتی چابهار) is an Iranian free trade zone formed according to the law on the establishment and administration of free trade–industrial zones .
Chabahar free trade–industrial zone was established in 1992 along with the two other free trade zones Qeshm and Kish Island to use global expertise (mostly from South East Asia) as a tool for the development of the country, accelerating the accomplishment of infrastructure, creation of employment, and representation in global markets.[1]
Main activities
The Chabahar Free Trade-Industrial Zone commenced its operations in 1995, with a primary focus on five major areas: the transit of merchandise goods, investment attraction and related services, tourism, construction and urban development, and education. These activities are overseen by the Chabahar Free Trade-Industrial Zone Organization, which is under public control.
After overseeing a series of agreements intending to develop the Port of Chabahar, India's Highways and Shipping Minister, Nitin Gadkari suggested that the Chabahar Free Trade-Industrial Zone had the potential to attract upwards of $15 billion worth of investment in the future,[2] although he stated that such investments are predicated upon Iran offering India natural gas at a rate of $1.50 per million British Thermal Units,[3] which is substantially lower than the rate of $2.95 per million British Thermal Units offered by Iran.[4] The two countries also signed a memorandum of understanding to explore the possibility of setting up an aluminum smelter at a cost of $2 billion,[citation needed] as well as establishing a urea processing facility in Chahbahar,[5] although these investments are also contingent upon Iran supplying low-cost natural gas for operation of those facilities.[6]
^"India may invest Rs 2 lakh crore at Chabahar port in Iran: Nitin Gadkari". Economic Times. 8 October 2015. Retrieved 24 May 2016. "India is ready to invest Rs 2 lakh crore at Chabahar SEZ in Iran but the investments would depend on gas prices as India wants it to be lowered," Gadkari said... On talks on supply of natural gas, Gadkari said that Iran has offered gas to India at $2.95 per million British thermal unit to set up urea plant at the Chabahar port but India is negotiating the gas price, demanding lowering the same... India, which imports around 8-9 million tonnes of the nitrogenous fertiliser, is negotiating for a price of $1.5 per mm [million] Btu with the Persian Gulf nation in a move which if successful will see a significant decline in the country's Rs 80,000 crore subsidy for the soil nutrient.
^"India, Iran ink pact to develop Chabahar port, aluminium plant". Business Standard. 23 May 2016. Retrieved 25 May 2016. state-owned Nalco signed an MoU to look at possibility of setting up a 0.5 million tonne aluminium smelter at Chabahar free trade zone provided Iran gives cheap natural gas.
