India is considering temporarily handing over operational control of the Chabahar Port in Iran to an Iranian company, as uncertainties grow over U.S. sanctions relief. The port is currently managed by India Ports Global Limited (IPGL), a company under India’s Ministry of Shipping.
The move comes as the sanctions waiver granted by the United States—originally extended during the Trump administration—is set to expire on April 26. Although India has requested an extension, there has been no response so far, and chances of renewal appear slim given the current geopolitical tensions and U.S. stance against economic activities benefiting Iran.
Due to the combined impact of sanctions and ongoing conflict in West Asia, operations at the strategically important port have been affected. In this context, India is exploring the option of transferring its stake in the Chabahar Port Company to an Iranian firm, with a condition that control would revert to India once sanctions are lifted.
Government sources indicate that discussions are ongoing and that any decision will aim to safeguard India’s strategic and economic interests. So far, India has invested around $120 million in the project.
Chabahar Port holds significant importance for India’s foreign trade, as it provides access to countries like Afghanistan, Uzbekistan, Kazakhstan, Kyrgyzstan, and Turkmenistan without relying on Pakistan. India began developing the port in 2003, and in 2024, India and Iran signed a 10-year agreement for its operation.
Notably, the port is located near Pakistan’s Gwadar Port, which is being developed by China, adding further strategic importance to Chabahar.