India may transfer Chabahar stake to Iranian company:Temporary arrangement to continue until US sanctions ease

India may hand over its stake in Iran’s Chabahar Port to an Iranian company. According to a Bloomberg report, this step could be taken temporarily to ensure operations continue even after the US sanctions waiver expires. The report states that India has invested $120 million in the port. The Indian government is currently holding separate talks with both the US and Iran on the issue. These discussions are said to be highly sensitive, with officials involved declining to be identified. India had received a six-month waiver in November 2025, allowing uninterrupted work at Chabahar Port. This waiver is set to expire this month.is month. India is not fully exiting Chabahar The report clearly states that India is not planning to completely withdraw from the Chabahar project. There are future plans to enhance connectivity at the port, including a rail link, which would strengthen access to Afghanistan and beyond. India views this temporary transfer as an attempt to maintain a balance between the US and Iran. On one hand, the US has strict sanctions on Iran, while on the other, Chabahar Port remains a key part of India’s strategic interests. The port provides direct access to Afghanistan while bypassing Pakistan. Chabahar Port is located near the Strait of Hormuz, a crucial maritime route that connects the Persian Gulf to the Arabian Sea. Its location makes it strategically significant. For a long time, Chabahar Port has been an integral part of India’s regional strategy. It is also seen as a counter to China’s presence at Pakistan’s Gwadar Port. Any move to transfer stake could therefore have implications for regional geopolitics. What India has done so far for the port India began talks with Iran over the Chabahar Port during the Atal Bihari Vajpayee government in 2003. However, the process stalled due to rising tensions between the US and Iran. In 2013, then Prime Minister Manmohan Singh announced an investment of ₹800 crore in the Chabahar Port project. In 2016, Prime Minister Narendra Modi signed the Chabahar agreement with the leaders of Iran and Afghanistan. Under this deal, India committed ₹700 crore for a terminal and agreed to provide a ₹1,250 crore loan for the port’s development. In 2024, then Foreign Secretary Vinay Kwatra met Iran’s Foreign Minister to discuss connectivity issues related to the project. According to India Ports Global Limited (IPGL), the Chabahar Port will be able to handle up to 82 million tonnes of cargo once fully operational. Four major benefits of Chabahar Port for India 1. Access to Central Asia without Pakistan India does not have to rely on Pakistan to send goods to Afghanistan or other Asian countries. Through Chabahar Port, India can directly transport goods to Afghanistan and Central Asia, saving both time and cost. 2. Boost to trade India can export goods such as medicines, food, and industrial products more easily through Chabahar. This will increase exports and reduce logistics (transportation) costs. It also makes it easier for India to import oil from Iran, while both countries can develop Chabahar as a trade hub. 3. Protection of India’s investment India has invested significant financial and logistical resources in developing the port, and continued involvement helps safeguard this investment. 4. Counter to China-Pakistan axis Chabahar Port is located close to Pakistan’s Gwadar Port, where China has invested heavily. This gives India a strategic advantage and helps counter the China-Pakistan partnership. ​