India reacted cautiously on Friday to the US administration's decision to revoke a sanctions waiver that allowed New Delhi to establish a presence at the strategic Iranian port of Chabahar, saying it is studying the ramifications of the move.
The US state department announced this week that it will revoke a sanctions waiver granted in 2018 for Chahbahar port from September 29. The waiver, granted during US President Donald Trump's first term, was linked to building alternative connectivity to Afghanistan that bypassed Pakistan.
“We have seen the US press statement regarding revocation of sanctions waiver for Chahbahar port. We are presently examining its implications for India,” external affairs ministry spokesperson Randhir Jaiswal told a weekly media briefing.
The US state department said the revocation of the waiver was in line with Trump’s “maximum pressure policy to isolate the Iranian regime”. Noting that the exception was made for Afghanistan’s reconstruction and economic development, the state department said “persons who operate the Chabahar Port or engage in other activities” could be exposed to sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA).
The development has widely been perceived as a setback to India's plans to develop Shahid Beheshti terminal at Chabahar port, where operations were taken over by state-owned India Ports Global Limited (IPGL) in 2018. Last year, India and Iran signed a long-term agreement covering IGPL's operations at Chabahar for 10 years.
{{/usCountry}}The development has widely been perceived as a setback to India's plans to develop Shahid Beheshti terminal at Chabahar port, where operations were taken over by state-owned India Ports Global Limited (IPGL) in 2018. Last year, India and Iran signed a long-term agreement covering IGPL's operations at Chabahar for 10 years.
{{/usCountry}}Under this agreement, IGPL was to have invested about $120 million on further equipping Shahid Beheshti terminal, including procuring equipment such as mobile harbour cranes, rail mounted quay cranes, forklifts and pneumatic unloaders.
India has also offered a credit window of $250 million for projects aimed at improving Chabahar-related infrastructure.
However, US sanctions on Iran over its nuclear programme have hampered India's efforts to acquire equipment for the port, which is seen by New Delhi as vital for improving connectivity with Afghanistan and the Central Asian states.