Tehran and New Delhi on Saturday signed agreements including an $85 million USD accord for the development of Chabahar Port in south-eastern Iran.

According to the agreement, India will invest the money to build the capacity of Chabahar port.

The lease agreement which gives operational control to India of Shahid Beheshti port - phase one of the Chabahar port - was signed in the presence of Iranian President Hassan Rouhani and Indian Prime Minister Narendra Modi in New Delhi.

Addressing a joint press conference after signing the agreements, Modi said the two countries want to expand bilateral ties and cooperation in economic development.

“We will support the construction of the Chabahar-Zahedan rail link so that Chabahar gateway’s potential could be fully utilized,” Modi said, as quoted by Reuters. “We want to expand connectivity, cooperation in the energy sector and the centuries-old bilateral relationship.”

Other agreements signed by the two leaders include a double taxation avoidance treaty, extradition, and cooperation in the farming sector.

Rouhani, who is on a three-day visit to India, will also discuss the issue of oil with Indian officials. India is the second-biggest importer of Iranian crude oil.