Govt Prepares To Sell Stake In Chabahar Port To Iranian Entity As Relief From US Sanctions Ends On Sunday

The government may sell its stake in the Chabahar Port project as the waiver from sanctions by the United States ends on Sunday.

The government is looking for an Iranian entity to buy the Indian stake on the assurance that the deal will be reversed if the restrictions are lifted, according to a report by Business Standard.

A proposal is in the works to sell the holding of India Ports Global (IPGL) in India Ports Global Chabahar Free Zone (IPGCFZ) to a local Iranian company.

So far, India’s activities at the port remain exempt from US sanctions as per a waiver granted by the latter.

As the war between the US and Iran has deteriorated relations between the two countries, it is unlikely that the waiver will be extended again.

About $120 million has been invested by India in equipment procurement for the Chabahar project.

India had signed a 10-year agreement with Iran in 2024 to operate a terminal at Chabahar.

The port is strategically important for India as it provides direct sea-land access to Afghanistan and Central Asia, bypassing Pakistan.

It also serves as a counterweight to China’s growing presence in the region.

The port has also been crucial in enabling humanitarian aid and emergency assistance to Afghanistan.

India had first secured an exemption for its operations at Chabahar in November 2018.

However, in February 2025, the US administration asked the Secretary of State to revise or revoke sanctions waivers that offer Iran any kind of economic or financial relief.

The directive did not exempt activities at the Chabahar Port project. The US State Department finally withdrew the 2018 waiver in September last year.

But after India’s representation, the US Department of the Treasury in October last year issued a letter exempting operations at the Chabahar Port from US sanctions till 26 April this year.