By Amiti Sen

Copyright thehindubusinessline

The US State Department has revoked the sanctions exception for Iran issued in 2018 for Afghanistan reconstruction assistance, which will be effective September 29, threatening India’s significant investments in Chabahar port and ongoing projects.

“Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in Iran Freedom and Counter-Proliferation Act (IFCA) may expose themselves to sanctions under IFCA,” per a statement issued by the US Department of State on Tuesday.

It noted that the Secretary of State had revoked the sanctions exception issued in 2018 under the IFCA for Afghanistan reconstruction assistance and economic development, effective September 29, consistent with US President Donald Trump’s maximum pressure policy to isolate the Iranian regime.

In May 2024, India signed a 10-year agreement with Iran to operate and manage the Chabahar Port, located close to Iran’s south-eastern border with Pakistan, that will connect India directly to Afghanistan and Central Asia by-passing Pakistan.

The long-term agreement was signed by state-run Indian Ports Global Ltd (IPGL) and the Port and Maritime Organisation of Iran, with India agreeing to invest about $120 million. Another $250 million was to be raised as debt.

The agreement replaced an initial 2016 pact, which covered India’s operations at the Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis.

The handling of cargo had also been rising at the port, with volumes reaching up to 80,000 twenty-foot equivalent unit (teu) and 3 million tonnes (mt) of bulk cargo, in FY25, per government figures.

“India has already supplied port equipment worth about $24 million to develop the Chabahar Port. The process for procurement of remaining port equipment for Chabahar Port is underway,” the MEA had said in a Parliament question reply in November 2024..

Published on September 18, 2025