India will invest a total of $195 million to develop Chabahar port in south-eastern Iran, a report said.

Tehran and New Delhi have signed a memorandum of understanding (MoU) for the investment, Iranian Minister for Roads and Urban Development Abbas Akhoundi was quoted as saying in an Iran Daily report.

"The MoU that we signed has two parts; the first pertains to equipping and developing phase one of Chabahar port and the Indians have undertaken to invest $85 million for equipping Chabahar port in phase one," the report quoted Akhoundi, citing Fars News Agency.

"Based on the other part of the MoU, the Indian side has also voiced its readiness to invest $110 million to develop other phases of Chabahar port," he added.

Chabahar, on the mouth of the Straits of Hormuz in the Persian Gulf, provides India a land-sea access route into Afghanistan and Central Asia through the Bandar Abbas-Caspian Sea axis, the report said.