India hands over Chabahar port control to Iran amid US sanctions

India is finalising the handover of operations at the Shahid Beheshti terminal of Iran's Chabahar Port to the Iranian government, after a US sanctions waiver expired in April, sources told The Hindu BusinessLine. India is seeking safeguards to regain control once sanctions are lifted.

A source said India is taking US sanctions seriously and does not want state-owned banks to be penalised by the Office of Foreign Assets Control or cut off from SWIFT. India wants the terminal to keep operating, as it is strategically important for access to Afghanistan and Central Asia bypassing Pakistan, and is a key link in the International North-South Transport Corridor.

India committed $85.21 million and a $150 million credit line in 2016, and in May 2024 signed a 10-year contract with a $120 million equipment commitment. A US sanctions exemption covered the project until it was revoked in September 2025, and a conditional waiver ran until April 26, 2026. The source said few ships are docking due to sanctions and the Iran-US conflict, but India is in constant touch with Iran to keep the project active.