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The extension, which expired on Tuesday (October 28), will allow India to continue managing and developing the Shahid Behesti terminal through its public sector enterprise India Ports Global Limited (IPGL), CNN-News18 reported citing government sources.
The waiver was previously set to expire on September 29 as part of Washington’s earlier decision to withdraw sanctions relief linked to the Iranian port.
Strategic importance for India
The renewal of the concession comes as a huge relief for New Delhi, ensuring the continuity of one of its most important regional connectivity projects.
India is using Chabahar port to deliver humanitarian aid and essential supplies to Afghanistan, bypassing Pakistan. The port also facilitates direct sea access to Central Asian countries like Uzbekistan and Kazakhstan, increasing India’s trade access to landlocked areas.
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In 2024, India and Iran signed a decade-long agreement allowing IPGL to operate and develop the Shahid Behesti terminal.
According to News18, the arrangement underlines India’s long-term strategic commitment to Chabahar, enabling infrastructure and promoting regional trade relations by integrating both maritime and land transportation networks.
connect to international corridor
Chabahar Port is an important segment of the International North-South Transport Corridor (INSTC), a multimodal trade route connecting India, Iran, Russia and several Central Asian countries.
The integration aims to reduce transit time and costs, strengthening India’s position as a major player in regional logistics.
Sanctions and diplomatic balancing
US sanctions on Iran, particularly targeting its financial and energy sectors, have long posed a challenge for foreign investors.
The US State Department said on September 16 that revoking the waivers was consistent with President Trump’s “maximum pressure policy to isolate the Iranian regime”. It also warned that those continuing the operation in Chabahar would “risk sanctions.”
However, since 2018, the Chabahar port project has repeatedly received concessions acknowledging its humanitarian and strategic relevance.
According to CNN-News18, India believes that this renewed waiver will help strengthen trade and connectivity with Central Asia while maintaining a careful balance between its diplomatic relations with Washington and Tehran.