First sanctions, now war: India's Chabahar plans up in the air, Pg16

Key Highlights:

• Recent US strikes in Iran caused concern in India regarding its Chabahar Port project, though India clarified its terminal was undamaged.
• India operates the Shahid Beheshti terminal at Chabahar Port under a 10-year agreement with Iran's Ports and Maritime Organisation.
• The project, where India has invested billions, faces challenges due to US sanctions on Iran, impacting its operational control.
• India prepaid its $120 million investment and transferred operational stake to local entities to mitigate sanctions.
• The US administration withdrew and then re-granted a six-month sanctions waiver for Chabahar Port, which expired in April.

Detailed Insights:

• Chabahar Port is strategically vital for India, offering an alternative trade route to Afghanistan and Central Asia, bypassing Pakistan.
• For Iran, Chabahar is its only oceanic port with direct access to the Indian Ocean, avoiding the congested Strait of Hormuz.
• The port serves as a counterweight to China's development of Gwadar Port in Pakistan, located approximately 140 km away.
• US sanctions on Chabahar intensified after the Trump administration withdrew from the Iran Nuclear Deal (Joint Comprehensive Plan of Action - JCPOA) in 2018.
• The sanctions waiver, initially granted for humanitarian and economic efforts in Afghanistan, was crucial for the port's operations.
• The expiry of the latest waiver has led to India losing direct operational control over the project.
• The Union Budget for 2026-27 made no allocation for Chabahar Port, raising concerns about its future funding.
• India's Ministry of External Affairs (MEA) has engaged with stakeholders following the waiver's expiration to address the situation.

Key Concepts Involved:

• Chabahar Port: A seaport in southeastern Iran, developed by India to enhance regional trade and connectivity.
• Shahid Beheshti Terminal: One of the two main terminals at Chabahar Port, operated by India Ports Global Ltd.
• US Sanctions: Economic and military restrictions imposed by the United States, primarily targeting Iran's nuclear program and other activities.
• Iran Nuclear Deal (JCPOA): A 2015 agreement between Iran and world powers to limit Iran's nuclear program in exchange for sanctions relief.
• Gwadar Port: A deep-sea port in Pakistan, developed with Chinese investment, located near Chabahar Port.