India is in touch with all stakeholders regarding Chabahar port operations: MEA
The Ministry of External Affairs (MEA) informed Parliament that the government remains engaged with all concerned stakeholders regarding the Chabahar Port project in Iran
The statement follows the expiry, on 26 April 2026, of a conditional US sanctions waiver that had shielded Chabahar-related activity from American secondary sanctions
India Ports Global Limited (IPGL), through its subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), has operated the Shahid Beheshti Terminal at Chabahar since 2018 under a ten-year contract signed with Iran's Ports and Maritime Organisation in May 2024
The government confirmed that India has fully paid its USD 120 million financial commitment for port equipment under the contract, with the final instalment transferred in August 2025, and that no further financial commitment is outstanding
Chabahar Port is described as strategically important for providing India access to Afghanistan and Central Asia while bypassing Pakistan
Chabahar Port Project and the 2016 Trilateral Agreement
Chabahar is a deep-water port on Iran's southeastern coast, on the Gulf of Oman, outside the Persian Gulf. India, Iran, and Afghanistan signed a trilateral agreement in May 2016 (during a visit to Tehran) establishing an International Transport and Transit Corridor through Chabahar, intended to give India connectivity to Afghanistan and Central Asia without transiting Pakistan.
Key Details
- India Ports Global Limited (IPGL), a joint venture of Jawaharlal Nehru Port Authority (JNPA) and Kandla/Deendayal Port Authority, has managed Shahid Beheshti Terminal operations since 2018
- The May 2024 contract is a ten-year agreement for equipping and operating the terminal, following years of interim/short-term arrangements
- Chabahar is distinct from Iran's Bandar Abbas port and from Pakistan's China-operated Gwadar port, located about 100 km away on the same coastline — a frequently tested India-vs-China connectivity contrast
- India's committed financial exposure was capped at USD 120 million for equipment procurement; this has now been fully disbursed, with the government stating no further financial commitment remains
The current MEA statement on continued "stakeholder engagement" and the confirmation of completed financial disbursal reflect India managing the operational and legal uncertainty created by the lapse of the US sanctions carve-out, without withdrawing from the 2016 trilateral framework.
International North-South Transport Corridor (INSTC) and US Sanctions on Iran
Chabahar is envisioned as India's gateway node into the INSTC, a multi-modal (sea-rail-road) network linking India, Iran, Russia, Central Asia, and Europe, conceived in 2000 as an alternative to the longer Suez Canal route. Because Chabahar sits on Iranian soil, India's involvement has required US sanctions carve-outs, since Iran remains subject to comprehensive US secondary sanctions.
Key Details
- INSTC (signed 2000 by India, Iran, Russia) claims to cut cargo transit time by about 40% and cost by about 30% compared to the traditional Europe-Suez Canal route
- The US had earlier granted Chabahar a specific sanctions carve-out (dating to the Trump administration's first term) recognising its role in Afghan reconstruction; this waiver was reviewed and withdrawn in September 2025, then extended briefly before lapsing on 26 April 2026
- Iran remains under comprehensive US secondary sanctions (reimposed after the 2018 US withdrawal from the JCPOA nuclear deal), which can penalise third-country entities (including Indian firms) dealing with Iranian ports
- India has reportedly withdrawn personnel from Chabahar and is weighing options, including transferring its terminal stake to an Iranian entity, to minimise sanctions exposure
The lapse of the sanctions waiver directly threatens Chabahar's viability as India's INSTC access point, making the government's "continued engagement" posture a middle path between full withdrawal and unmitigated sanctions exposure — a live example of how extraterritorial sanctions regimes constrain Indian connectivity diplomacy.
- Trilateral Chabahar Agreement signed: May 2016 (India, Iran, Afghanistan)
- IPGL/IPGCFZ operating Shahid Beheshti Terminal since: 2018; ten-year operating contract signed: May 2024
- India's total financial commitment: USD 120 million (fully paid; final instalment August 2025)
- US sanctions waiver for Chabahar lapsed: 26 April 2026
- INSTC signed: 2000 (India, Iran, Russia); claimed savings: ~30% cost, ~40% time versus the Suez route
- Gwadar Port (Pakistan, China-operated under CPEC) lies roughly 100 km from Chabahar, a key comparative geography fact