Days ahead of the expiry of an extended US sanctions waiver on India’s operations at Iran’s southeastern port city of Chabahar, India is moving to divest its stake in the strategic port to an Iranian entity, according to people aware of the developments.
The Indian government has worked out a proposal to disinvest the stake of India Ports Global (IPGL) in India Ports Global Chabahar Free Zone (IPGCFZ) to an Iranian entity, an informed official said, Business Standard reported.
India’s activities at the Iranian port remain sanctions-free until Sunday, and it has been eyeing an arrangement where a local entity would take over operations until the US sanctions remain in effect, with a guarantee that it would be transferred to India again once those sanctions are lifted.
Queries sent to India’s Ministries of External Affairs, and Ports, Shipping and Waterways remained unanswered until the time of going to press.
Amid the West Asia war, the Indian Ministry of External Affairs (MEA) has been engaging with all stakeholders over the situation.
India's Chabahar operations were given an exemption from the US sanctions on Iran in November 2018.