US Waiver to India on Chahbahar Port

Syllabus: GS2/IR

Context

• India has received a waiver on the United States’ sanctions against Iran’s Chabahar port for a period of six months.

Background

• India and Iran signed an MoU in 2015 to jointly develop the Shahid Beheshti Port at Chabahar.
• Aim: To develop a major commercial hub helping India access the markets of Afghanistan, the Central Asian states, and Russia. 
• Sanctions: The port’s prospects came under a cloud due to Western sanctions against Iran but in 2018, the first Trump administration gave a waiver to Indian operations.
  • With the fall of Afghanistan to the Taliban in 2021 has exposed anyone associated with the Chabahar project to U.S. sanctions.

Chabahar Port

• Iran’s Chabahar port is located on the Gulf of Oman and is the only oceanic port of the country. 
• It is situated in the city of Chabahar in Sistan and Baluchestan Province. 
• Chabahar has two ports; Shahid Kalantari and Shahid Beheshti.
  • The former is an old port with limited water front to accommodate feeder vessels.
  • The Shahid Beheshti Port is being developed in four phases. On completion of all 4 phases, port capacity will 82 million tons per year.
• The port gives access to the energy-rich Persian Gulf nations’ southern coast and bypasses Pakistan.
• Kandla port in Gujarat is the closest port at 550 nautical miles, while the distance between Chabahar and Mumbai is 786 nautical miles.

Significance of Chabahar Port for India

• Geopolitical Significance: It is strategically located at the crossroads of South Asia, Central Asia, and the Middle East. It provides India with direct sea access to Afghanistan and Central Asia, bypassing Pakistan.
  • The port also offers an alternative route from the Strait of Hormuz for cargo traffic between Central Asian countries and Afghanistan. This diversification strengthens India’s strategic position in the region.
• Gateway to INSTC: Chabahar port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor (INSTC) that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.
• Countering China: Chabahar port is beneficial to India in countering Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port. 
• Trade Benefit: With Chabahar port becoming functional, there will be a significant boost in the import of iron ore, sugar and rice to India.
  • The import cost of oil to India will also see a considerable decline.

Source: TH