India is set to transfer its stake in the Chabahar Port project in Iran to a local Iranian entity as the extended US sanctions waiver is about to expire. India Ports Global Ltd (IPGL) is planning to sell its holding in the India Ports Global Chabahar Free Zone (IPGCFZ) to mitigate risks associated with US sanctions. This decision comes after the US State Department indicated a review of waivers that provide economic relief to Iran, including those linked to Chabahar. Since November 2018, India has enjoyed exemptions from US sanctions concerning its engagement at Chabahar, which is strategically important for accessing Afghanistan and Central Asia while circumventing Pakistan. India has invested nearly $120 million in the port, which has also been used for humanitarian assistance to Afghanistan. The proposed stake transfer is seen as a way to reduce sanctions-related risks while exploring interim management arrangements with Iranian operators. If completed, this move could significantly alleviate the sanctions exposure faced by companies involved in the Chabahar project.