**Executive Summary**
This document addresses India's involvement in the Chabahar Port project in Iran, particularly in light of potential US sanctions. The document outlines the project's purpose to enhance connectivity to Afghanistan and Central Asia. It mentions a conditional sanctions waiver extended until April 26, 2026, and ongoing engagement by the Indian government to address related implications.
**Key Points / Main Content**
* **Chabahar Port Project Overview:**
* The project aims to provide connectivity to Afghanistan for reconstruction and economic development.
* It also aims to boost trade and economic linkages with Central Asia.
* **Operational Details:**
* India Ports Global Limited (IPGL), through its subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), began operating the port in 2018.
* IPGL signed a ten-year contract on May 13, 2024, to equip and operate the Shahid Beheshti Terminal.
* India has fulfilled its commitment of contributing USD 120 million for port equipment procurement.
* **US Sanctions and Waivers:**
* On September 16, 2025, the US State Department revoked the sanctions exception issued in 2018.
* The revocation, effective September 29, 2025, was under the Iran Freedom and Counter Proliferation Act 2012.
* Guidance was issued extending the conditional sanctions waiver until April 26, 2026.
* The Government of India remains engaged with all concerned to address the implications of these developments.
**Impact Analysis**
**Government of India**
* **Impact:** Needs to address the implications of the revoked US sanctions exception on the Chabahar Port project.
* **Action Required:** Continued engagement with all concerned parties, including the US, to mitigate potential negative impacts on strategic and connectivity objectives.
**India Ports Global Limited (IPGL) and India Ports Global Chabahar Free Zone (IPGCFZ)**
* **Impact:** Subject to potential secondary sanctions.
* **Action Required:** Monitor the status of the sanctions waivers and comply with all applicable regulations to minimize exposure to potential secondary sanctions.
**Afghanistan and Central Asian Countries**
* **Impact:** Potential disruption to connectivity and trade opportunities if the Chabahar Port project is negatively impacted by sanctions.
* **Action Required:** Monitor the developments related to the sanctions and engage with the Government of India to ensure the continued functionality of the Chabahar Port.
Key Entities Referenced
Chabahar Port: The port in Iran is the main subject of the policy, involving India's strategic and financial engagement.
India Ports Global Limited (IPGL): The Indian company operating the Chabahar Port, exposed to potential secondary sanctions.
Ministry of External Affairs: The Indian ministry responsible for answering the question regarding the Chabahar Port project.
Afghanistan: The country is central to the purpose of the Chabahar Port project.
Iran Freedom and Counter Proliferation Act 2012: US law that affects the Chabahar Port project due to sanctions.
GOVERNMENT OF INDIA
MINISTRY OF EXTERNAL AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO-1287
ANSWERED ON- 06/02/2026
INDIA’S ENGAGEMENT IN CHABAHAR PORT
1287. SHRI MANISH TEWARI
Will the Minister of EXTERNAL AFFAIRS be pleased to state:-
(a) whether the Government has reviewed India’s strategic, financial and
operational engagement in the Chabahar Port project in Iran in view of
the risk of renewed or expanded United States sanctions, if so, the
details thereof;
(b) whether any steps have been taken to reduce the exposure of Indian
entities, including India Ports Global Limited (IPGL), to potential
secondary sanctions and if so, the details thereof;
(c) whether any Indian officials or representatives have been withdrawn
from management or decision-making roles related to the Chabahar Port
project and if so, the reasons therefor;
(d) the impact of such measures on India’s long-term strategic and
connectivity objectives, including access to Afghanistan, Central Asia
and the International North-South Transport Corridor (INSTC); and
1(e) whether the Government is engaged with the United States and other
partners to seek exemptions or safeguards for India’s continued
involvement in Chabahar and if so, the current status of such diplomatic
efforts?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS
(SHRI KIRTI VARDHAN SINGH)
(a to e) The Chabahar Port project was conceptualized to provide much-
needed connectivity to Afghanistan for its reconstruction and economic
development and for boosting trade and economic linkages with Central
Asia.
An Indian company, India Ports Global Limited (IPGL), through its wholly
owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ),
started operating the port in 2018. On 13 May 2024, IPGL signed a ten-
year contract with the Ports and Maritime Organisation of the Islamic
Republic of Iran for equipping and operating the Shahid Beheshti
Terminal of Chabahar Port. As per the provisions of the contract, India
has fulfilled its commitment of contributing USD 120 million for the
procurement of port equipment.
2On 16 September 2025, the US State Department revoked the sanctions
exception issued in 2018 under the Iran Freedom and Counter Proliferation
Act 2012 for Afghanistan’s reconstruction and economic development,
effective 29 September 2025. Pursuant to discussions with the US side, the
latter issued guidance extending the conditional sanctions waiver until 26
April 2026. The Government of India remains engaged with all concerned in
order to address the implications of these developments.
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