India in talks with Iran to safeguard Chabahar port as US sanctions waiver set to expire, explores interim mechanism to retain control
New Delhi: India is in talks with Iran to finalise an arrangement that secures its interests in the strategically located Chabahar Port, as the US is unlikely to extend the sanctions waiver beyond Sunday.
The government is negotiating with Tehran to put in place a mechanism under which a local ports authority will manage the port, with a guarantee that operational rights will revert to India once sanctions are lifted, ET has learnt.
Also read: India may temporarily transfer Chabahar Port stake to an Iranian entity before US sanctions kick in
Talks are ongoing to arrive at a solution that safeguards India's strategic and commercial interests, though progress has been slowed by the conflict in the region.
In October 2025, India secured a six-month US sanctions waiver for Chabahar, which expires on Sunday.
A parliamentary panel of the Ministry of External Affairs last month noted that recent developments have cast a shadow on the port's future, while welcoming the Centre's continued engagement with stakeholders to address the implications.
ET had reported in January that India Ports Global Limited (IPGL), which has been managing the port since 2024 under a 10-year agreement with Iran, may route operations through a local entity with a built-in clause ensuring eventual transfer of rights back to India.
New Delhi is seeking legal guarantees from Tehran to ensure that any interim arrangement between port authorities is honoured.
Experts tracking Iran say China could seek a role in Chabahar if India's presence weakens, a scenario seen as detrimental to India's strategic interests.
Chabahar is a key gateway for Afghanistan and Central Asian countries to access the Indian Ocean and markets in India and the Gulf. It also provides connectivity to parts of Russia via Central Asia.
On May 13, 2024, India signed a 10-year contract to operate the port – its first overseas port management deal – between IPGL and Iran's Ports and Maritime Organisation. India has invested about $120 million in the port and extended a $250 million equivalent credit window for related infrastructure projects.
Also Read: 'Chabahar port work to expand even more rapidly after war ends': Iranian envoy to India
The port is central to India's engagement with Afghanistan, including humanitarian assistance, and is expected to link with the International North-South Transport Corridor.
Central Asian nations such as Uzbekistan, Kazakhstan and Tajikistan are also keen to use Chabahar to boost trade with India and gain access to the Indian Ocean. India is also pursuing an early harvest trade agreement with the Eurasian Economic Union, with Chabahar expected to play a key role in facilitating this corridor.
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