India, Iran explore interim Chabahar Port management deal amid hopes of US sanctions relief
India and Iran are holding discussions on an interim arrangement to manage Chabahar Port, even as the United States pushes for a fresh round of
India and Iran are holding discussions on an interim arrangement to manage Chabahar Port, even as the United States pushes for a fresh round of peace negotiations with Tehran, according to an Economic Times report citing people familiar with the developments. As New Delhi waits for US sanctions on Iran to be eased following a potential diplomatic agreement, it has stepped up efforts with Tehran to finalise a mechanism that safeguards India's strategic interests in Chabahar Port. India had received a si month waiver from US sanctions for operations at the port in October 2025, but the exemption expired on 25 April this year. According to the ET report, the Indian government is negotiating with Iran to establish an agreement with a local port authority that would oversee Chabahar's management until sanctions are lifted. The proposed arrangement would include assurances that operational rights would revert to India once US restrictions are removed.
India seeking legal binding agreement from Iran India is also seeking a legally binding commitment from the Iranian government to ensure that any interim agreement between the port authorities remains valid and is honoured when sanctions are eventually eased. Strategic experts believe Chabahar Port remains vital to India's regional connectivity and geopolitical interests. They caution that China could attempt to expand its presence at the port if India fails to maintain an operational role. Despite years of geopolitical and sanctions-related challenges, New Delhi has continued to pursue its long-term interests in the project. Chabahar serves as a crucial gateway not only to Afghanistan but also to the landlocked nations of Central Asia, providing them with a practical route to the Indian Ocean and improving access to Indian and Gulf markets. The government is consulting with relevant stakeholders after the conditional US sanctions waiver for the Chabahar Port project expired on 26 April, the Lok Sabha was informed on Friday.
Minister of State for External Affairs Kirti Vardhan Singh, in a written reply, said the government is assessing the implications of the waiver's expiry in response to a question on India's current role in the development and operation of the Shahid Beheshti Terminal at Iran's Chabahar Port. The query also sought information on the total investment India made in the port project from May 2015 to March 2026. Singh said the Chabahar Port project was conceived to provide Afghanistan with a reliable route for connectivity to support its reconstruction and economic growth. The port also plays a key role in strengthening India's trade and economic ties with Central Asian countries. He noted that India Ports Global Limited (IPGL), a government-owned company, has been operating the port since 2018 through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ).
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