India and Iran are holding discussions over the future management structure of Chabahar Port amid continuing uncertainty caused by US sanctions on the strategically important facility, according to a report by The Economic Times.
The talks are focused on creating an alternative operational arrangement with Iran’s ports authority that would allow Chabahar Port to continue functioning while protecting India’s long-term interests.
Under the proposed framework, operational rights would return to India once US sanctions restrictions are removed.
New Delhi is also seeking a legally binding commitment from Tehran to ensure that any temporary arrangement between the two port authorities is respected in the future.
The discussions come after the United States imposed sanctions on Chabahar Port following the expiry of a sanctions waiver granted earlier. The waiver, which had allowed India to continue its involvement in the project, expired on April 26. The Indian government has since been engaging with stakeholders to address the impact of the move.
External Affairs Minister S Jaishankar informed Parliament that India has increased grant assistance for supplying equipment to Chabahar Port to $120 million. He also said India has committed a $250 million Line of Credit in rupee equivalent for the port’s development.
Chabahar holds strategic importance for India as it provides direct access to Afghanistan and Central Asia without relying on transit routes through Pakistan. The port is also viewed as a counterbalance to China-backed Gwadar Port in Pakistan, located around 140 km away.
The Chabahar facility includes two terminals — Shahid Beheshti and Shahid Kalantari — with India currently managing the Shahid Beheshti terminal through India Ports Global Ltd (IPGL). Operations are carried out under a renewable 10-year agreement with Iran’s Ports and Maritime Organisation.
For India, Chabahar is a crucial connectivity project that supports trade access to Afghanistan and Central Asia while bypassing Pakistan’s restrictions on overland transit. For Iran, the port is its only oceanic gateway with direct access to the Indian Ocean, reducing dependence on the Strait of Hormuz.
The US had withdrawn from the Iran nuclear agreement in 2018 and reinstated sanctions on Tehran. However, Washington had provided a limited waiver for Chabahar to support humanitarian and economic activities linked to Afghanistan.
