The Trump administration in the US has issued a new directive which can potentially end the sanctions waiver that India enjoyed and which enabled New Delhi to continue its work on Iran’s Chabahar port. The order is being seen as a part of the USA’s ‘maximum pressure’ aimed at Iran. According to a report, India has 10 years of management rights of the Chabahar Port, and the latest memorandum from Trump, which seeks to modify sanctions waivers related to Iran’s port, may end up harming the interests of Afghanistan as well as other regional partners.
What does the White House memorandum say?
According to a White House memorandum, the US President has asked his administration to apply “maximum pressure” on Iran to “end its nuclear threat, curtail its ballistic missile programme, and stop its support for terrorist groups”.
The National Security Presidential Memorandum states the US Secretary of State shall “modify or rescind sanctions waivers,” particularly the ones which seek to give Iran some relief – both economic and financial – including those related to the Islamic Republic’s Chahbahar Port.
The importance of Chabahar port for India
Notably, Chahbahar is crucial to New Delhi’s regional aspirations as it offers a key sea-land route to Afghanistan and Central Asia. The route would allow India to bypass Pakistan, given the strained New Delhi-Islamabad ties.
India has made investments in the Chahbahar Port with a 10-year deal signed in 2024. The deal includes a USD 120 million investment aimed at developing ports as well as a credit facility of USD 250 million for infrastructure projects.
Notably, the Chahbahar Port has been operated by India Ports Global Limited (IPGL) since 2018, following a trilateral agreement between India, Iran, and Afghanistan.
Here’s what government said on Chabahar port in Rajya Sabha
In its response to a question on Chahbahar Port, the government said in Rajya Sabha, “On 24 December 2018, an Indian company, India Ports Global Limited (IPGL), through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ), took over the operations of Chabahar Port.”
The government, in its statement, added, “On 13 May 2024, IPGL signed a ten-year contract with the Ports and Maritime Organisation (PMO) of the Islamic Republic of Iran for equipping and operating the Shahid Beheshti Terminal of Chabahar Port.”
The government underscored that while procurement of remaining port equipment for Chabahar Port is underway, India has already provided port equipment worth about USD 24 million to develop the Chabahar Port.
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