US Extends Sanctions Waiver for India’s Chabahar Port Project

DID Press: India has succeeded in securing an extension of the US sanctions waiver allowing it to continue operations at Iran’s strategic Chabahar Port until early next year — a move that ensures the continuity of one of New Delhi’s most important regional connectivity projects.

According to Indian government sources, the waiver — which had been set to expire on Tuesday — allows the state-owned India Ports Global Limited (IPGL) to continue developing and operating the Shahid Beheshti terminal at Chabahar. The United States had originally set September 29 as the deadline to end the waiver, but New Delhi obtained an extension through diplomatic engagement until early next year.

The Economic Times earlier reported that intensive negotiations between India and Washington were underway regarding the waiver, and the outcome has now been secured in India’s favor.

This decision follows signing of a 10-year agreement between India and Iran on May 13, 2024, under which IPGL assumed long-term operational responsibility for the port.

Chabahar Port plays a critical role in strengthening India’s economic engagement with Afghanistan and facilitating humanitarian aid deliveries — including ambulances recently provided by New Delhi to Kabul. Even the Taliban administration has expressed interest in leveraging the port to expand its foreign trade routes.

Under broader regional connectivity plans, Chabahar is expected to be integrated into the International North-South Transport Corridor (INSTC) and linked to Central Asian nations. Uzbekistan — the world’s second-largest landlocked country — has welcomed this initiative and hopes India will ensure long-term stability for the Chabahar project.