India is finalising the modalities of handing over operations at Chabahar Port’s Shahid Beheshti terminal to the Iranian government after a US sanctions waiver for the project expired in April, while seeking safeguards to get back control when sanctions end, sources said.

“India is taking the US sanctions against Iran seriously. We do not want SBI or Union Bank of India to be sanctioned by the Office of Foreign Assets Control (OFAC) and kicked out of SWIFT, as it would affect millions of Indians. That is why we are handing over control of the Shahid Beheshti terminal to the Iranians and asking them to operate it for the time being,” a source tracking the development told businessline.

When the ongoing disruptions in West Asia and Iran settle down in the future and the US sanctions on the Chabahar Port are lifted, India would want to get the control of the terminal back and the terms for this are being worked out, the source added.

“India wants the Shahid Beheshti terminal to continue operating as it has significant stakes in its long-term future. It seeks to preserve its operational rights and regain control once the sanctions are lifted. The two sides are currently working out the terms under which India can resume operations at a later stage,” the source said.

Chabahar is strategically important to India as it provides access to Afghanistan and Central Asia while bypassing Pakistan. The Shahid Beheshti terminal is also a key link in the International North-South Transport Corridor (INSTC), connecting India with Central Asia, Russia and Europe.

India committed $85.21 million and a $150 million credit line to Chabahar in 2016. In May 2024, IPGL signed a 10-year contract with the Iranian government’s Port & Maritime Organization to run the Shahid Beheshti terminal, adding a $120 million equipment commitment. A 2018 US sanctions exemption covered the project until the US revoked it on September 16, 2025 (effective September 29). After talks, a conditional waiver ran October 29, 2025–April 26, 2026, after which India again faces potential exposure to US sanctions.

The greatest challenge facing the project now is how to keep it going as there aren’t many ships docking at the terminal, the source said. “We need someone to dock at the terminal for the terminal to work. That is not happening. Most foreign carriers do not want to take the risk of docking there because of the sanctions. Also, because it is a cargo terminal and not a oil terminal, things are slow with the ongoing Iran-US war. But India wants to keep the project active and is in constant touch with Iran on this,” the source said.

“From India, the Shipping Ministry and the Ministry of External Affairs are in dialogue with the Iranian Shipping Ministry and the Ports and Maritime Organization to ensure that the operations at the Shahid Beheshti port go on smoothly and it is protected from damage amid the ongoing firings and bombings,” the source noted.

Source: The Hindu Business 

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