PM okays proposal to dissolve India-Iran shipping joint venture

The decision to dissolve the JV comes at a time when India is looking to invest in Irans Chahbahar port to expand berthing facilities as a way to bypass Pakistan and connect to Afghanistan. The Iran-o-Hinds fleet was largely used to transport crude to India.

At the short cabinet meeting,the PM reportedly said the decision was a fait accompli. The Shipping Ministry has said that the firm was finding it tough to get customers for ships; faced problems related to insurance and financial transactions as banks refuse to entertain accounts linked with Iran; and that its vessels found it difficult to get ships operating under other flags to help them on the high seas.