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‘Examining implications’: India on US revoking Chabahar port sanctions waiver
The Chabahar Port in Iran is a strategically important facility that provides vital access to Afghanistan and Central Asia.
The ministry of external affairs on Friday reacted to the US revoking the sanctions waiver that allowed India to develop Iran’s Chabahar port, saying that it was “examining its implications” for New Delhi.
The Chabahar Port in Iran is a strategically important facility that provides vital access to Afghanistan and Central Asia.
"We have seen the US press statement regarding the revocation of the sanctions waiver for Chahbahar Port. We are presently examining its implications for India," MEA spokesperson Randhir Jaiswal told the media.
The US State Department said in a statement that starting September 29, persons operating the Chabahar Port and engaging in other related activities will face sanctions under the US Iran Freedom and Counter-Proliferation Act (IFCA). The move comes as a fresh setback to India’s plans to develop Chabahar Port, which is already facing significant delays due to broader US sanctions on Iran.
Earlier this year, HT reported that New Delhi and Tehran were planning to expand the port’s capacity and link it to the broader Iranian railway network through a 700 km rail line to the city of Zahedan. The projects were expected to hit completion by the middle of 2026.
The Chabahar port project
India had been in talks with Iran to develop the Chabahar Port since at least 2003. The two sides eventually signed a Memorandum of Understanding in 2015 under which India agreed to develop the Shahid Behesti Terminal in the port. In 2016, a tripartite agreement was signed between India, Iran and Afghanistan to develop the port as a hub with rail links connecting the economies of the three countries. Chabahar was seen as a way for Indian goods to bypass Pakistan and reach markets in Afghanistan and Central Asia.
New Delhi initially pledged to invest $85 million in the development of the Shahid Behesti terminal by providing equipment such as rail-mounted gantry cranes, tack masters, forklifts, trailers and tractors. In 2018, India Ports Global Limited (IPGL), a state-owned firm, took over operational control of the terminal.
In 2018, America agreed to provide a sanctions waiver that allowed India to develop Chabahar, given its importance as a source of economic development for Afghanistan. The fall of the US-supported Afghan government in 2021 and the rise of the Taliban weakened the logic behind the 2018 sanctions waiver, which was subsequently revoked this week.
