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Iran’s Nuclear Program & Western Sanctions

US revokes sanctions waiver on Chabahar Port

Why in the News?

The U.S. has ended the 2018 waiver that let India use Iran’s Chabahar Port for Afghanistan’s reconstruction, revoking it within 10 days.

US revokes sanctions waiver on Chabahar Port

About Chabahar Port:

  • Location: Deep-water port in Sistan-Baluchistan province of Iran, on the Gulf of Oman at the mouth of the Strait of Hormuz.
  • Unique Feature: The only Iranian port with direct access to the Indian Ocean.
  • Distances: Kandla Port, Gujarat – 550 nautical miles, Mumbai – 786 nautical miles from Chabahar.
  • Structure: Comprises Shahid Beheshti and Shahid Kalantari terminals.
  • Connectivity Potential: Its proximity to Afghanistan, Pakistan, and India and position on the International North-South Transport Corridor (INSTC) gives it the ability to become a major commercial hub.
  • INSTC: A multi-modal route linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via Russia.

India’s Engagements for Chabahar Port:

  • Tripartite Agreement (2016): India, Iran, and Afghanistan agreed to develop the Shahid Beheshti terminal, marking India’s first foreign port project.
  • Infrastructure Goals: Develop the port and build a rail line to Zahedan, bypassing Pakistan to reach Afghanistan and Central Asia.
  • Recent Developments: In May 2024, India Ports Global Ltd (IPGL) signed a 10-year lease to operate Shahid Beheshti.
  • Commitments: India pledged $120 million in equipment and a $250 million credit line.
  • Operations: India supplied 6 harbour cranes; facilitated shipments of 2.5 million tonnes of wheat and 2,000 tonnes of pulses to Afghanistan.

Implications of US Sanctions for India:

  • Economic Setback: Jeopardises India’s ₹200 crore investment and future projects.
  • Connectivity Loss: Cuts India’s only direct maritime gateway to Afghanistan, Central Asia, and INSTC.
  • Strategic Impact: Weakens India’s counter to China’s Gwadar Port in Pakistan under CPEC.
  • Diplomatic Strain: Risks tensions with Iran (strategic partner) and the United States (major trade partner).
  • Operational Challenges: Sanctions may deter shippers, insurers, and suppliers, slowing port activity.
[UPSC 2017] What is the importance of developing Chabahar Port by India?

Options: (a) India’s trade with African countries will enormously increase.

(b) India’s relations with oil-producing Arab countries will be strengthened.

(c) India will not depend on Pakistan for access to Afghanistan and Central Asia *

(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India

 

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