Indias Chabahar Port Project Faces Uncertainty in Iran

US Sanctions Waiver Expires for India’s Chabahar Port Project

A US sanctions waiver that had been in place since 2016 has expired, potentially putting India’s decade-long investment in Iran’s Chabahar Port project at risk. The port, located in southeastern Iran, was a key component of India’s regional strategic ambitions and aimed to establish a trade and transit corridor with landlocked Afghanistan and Central Asia.

The US had imposed sanctions on Iran under its “maximum pressure” campaign, which included an aggressive naval blockade against Iranian ports. India has been heavily dependent on the narrow sea route for energy supply and had negotiated with Iran to secure passage through the Strait of Hormuz.

India’s investment in the Chabahar port, including a $120m investment in the Shahid Beheshti terminal, was seen as crucial for its economic and strategic ambitions. The port allowed India to circumvent Pakistan’s control over land routes to Afghanistan and Central Asia, using a maritime route to ship goods between Iran and the region.

The Chabahar port also offered an alternative to China’s deep-sea port of Gwadar in Pakistan, which had been inaugurated in 2016. The Indian port was seen as a strategic presence that mitigated the risks posed by Gwadar, allowing India to outflank it.

India and Iran first agreed to develop the Chabahar port in 2003, but progress was halted due to US sanctions. Talks were revived after Washington eased sanctions under the 2015 Iran nuclear deal. However, the waiver has now expired, leaving the future of the project uncertain.

Kabir Taneja, a fellow at the India-based Observer Research Foundation think tank, stated that Chabahar is important for India’s connectivity endeavours in Central Asia. The Iranian port and the attached International North-South Transport Corridor (INSTC) offer both a core investment with Iran and access to geographies looking to diversify their access to coastlines and ports.

The expiration of the US sanctions waiver has raised concerns about the future of India’s Chabahar Port project, which had been seen as a key component of its regional strategic ambitions.

Source: Al Jazeera