New Delhi, May 7 (RHC)-- Defying U.S. warnings, India has signed an agreement with Iran to develop a port in the southeastern province of Sistan-Baluchestan. The agreement was reached following comprehensive talks between visiting Indian Road Transport and Highways Minister Nitin Gadkari and Iranian Minister of Roads and Urban Development Abbas Ahmad Akhoundi on Wednesday.

"With the signing of this MoU (Memorandum of Understanding), Indian and Iranian commercial entities would now be in a position to commence negotiations towards finalization of a commercial contract under which Indian firms will lease two existing berths at the port and operationalize them as container and multi-purpose cargo terminals," said an Indian Ministry of External Affairs statement.

The seaport will be located in Iranian port city of Chabahar in the Sistan-Baluchestan province on the southeastern coast of the province along the Gulf of Oman, and will give India a sea-land access route to Afghanistan, bypassing Pakistan.