New Delhi: India has confirmed that US sanctions will not apply to its operations at Iran’s Chabahar Port for the next six months, with the exemption taking effect retrospectively from October 29. The move provides significant relief for India’s long-term investment in the strategic project, which plays a crucial role in connecting India to Afghanistan and Central Asia while bypassing Pakistan.
India had signed a 10-year agreement with Iran last year under which state-run India Ports Global Ltd (IPGL) committed an investment of around $370 million to develop and operate the Shahid Beheshti terminal at Chabahar. The port, located in Iran’s Sistan-Balochistan province, serves as a key maritime access point for India’s humanitarian and trade initiatives, particularly for the landlocked regions of Afghanistan.
The exemption follows months of diplomatic engagement between New Delhi and Washington, which are also in advanced discussions over a major trade deal. Both sides are reportedly close to finalising the agreement, with Commerce Minister Piyush Goyal emphasizing that India seeks a fair and balanced outcome and will not rush into any deal under pressure.
The Chabahar Port project has long been a cornerstone of India’s regional connectivity and energy strategy. A similar waiver was granted in 2018 to allow India to continue its work on the port despite broader US sanctions on Iran.
The Ministry of External Affairs reiterated that India’s energy and infrastructure decisions are guided by national interest and the need to ensure affordable and diversified energy sources for its 1.4 billion citizens.
Chabahar remains vital for both India and Afghanistan, offering a direct trade route to the Arabian Sea and strengthening regional economic integration. The latest exemption ensures continuity of Indian operations and investments, safeguarding a project central to New Delhi’s strategic outreach in the region.
