Notwithstanding US objections, India earlier this month had inked a pact with Iran for the development of the port.
"Work has started on the Chabahar port. There is a joint venture of Kandla Port Trust (KPT) and Jawaharlal Nehru Port Trust (JNPT).... We will start port activities in a year or a year-and-a-half," Road Transport, Highways and Shipping Minister Gadkari told PTI in an interview here.
He said a draft agreement will be signed within three months in this regard.
The port will be developed through a special purpose vehicle (SPV) which will invest USD 85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.
More From This Section
India intends to lease two berths at Chabahar for 10 years.
Access to Afghanistan's Garland Highway can be made from Chahbahar port using the existing Iranian road network and the Zaranj-Delaram road, constructed by India in 2009.
This would establish road access to four of the major cities of Afghanistan -- Herat, Kandahar, Kabul and Mazar-e-Sharif.
Earlier on May 6, an MoU was signed by Gadkari and Iran's Minister for Transport and Urban Development Dr Abbas Ahmad Akhoundi after comprehensive talks between Gadkari and Iranian leadership during his visit to the country.
Iranian President Hassan Rouhani, in his meeting with Gadkari, had said: "Resumption of Iran-India cooperation in the southeastern Iranian port city of Chabahar would lead to a new chapter in relations of two countries."
Prime Minister Narendra Modi had also assured Afghan President Ashraf Ghani of India's commitment to building the port.
Earlier in 2003, the NDA government under Atal Bihari Vajpayee had signed an agreement with Iran for the Chabahar Port, but it could not be materialised.