NEW DELHI, February 27, 2014 (AFP) - Khan, 23, who opened Wednesday with a dramatic 11-under-par 61, struggled with an outward 37 but came home with an eagle and two birdies at the Delhi Golf Club.
His two-day total of 14-under-par 130 on his home course kept him ahead of Bangladesh's Siddikur Rahman (67), Mithun Perera of Sri Lanka (68) and Australia's Unho Park (65) in the $300,000 Asian Tour event.
Switzerland's Martin Rominger moved into contention with a brilliant 63 to lie five shots back.
And two-times champion Anirban Lahiri of India stayed in the hunt with a bogey-free 66 to lie six back with two rounds remaining.
"I didn't hit the ball well and I was really struggling," said Khan in comments supplied by the organisers.
"But I managed to hole two or three putts, which was important. I made eagle on the first from a good putt from 25 feet and had another good birdie on seven from 25 feet. It was all because of my putting."
Siddikur shot a second straight 67 to give himself another chance of winning at the Delhi venue after his triumph at the Hero Indian Open in November.
"Another five under today, I'm happy. It's good, that's my target every day," he said.
Scores after the second round:
130 - Rashid Khan (IND) 61-69
134 - Siddikur Rahman (BAN) 67-67, Unho Park (AUS) 69-65, Mithun Perera (SRI) 66-68
135 - Martin Rominger (SUI) 72-63
136 - Anirban Lahiri (IND) 70-66, Digvijay Singh (IND) 68-68
137 - S.S.P Chowrasia (IND) 68-69, Scott Barr (AUS) 67-70, Akinori Tani (JPN) 66-71