Days ahead of the expiry of an extended US sanctions waiver on India’s operations at Chabahar Port, India is moving to divest its stake in the strategic port to an Iranian entity, according to people aware of the developments.

The 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, said an official in the know.

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.