New Delhi: India has announced that it will not be making any additional financial contributions toward the development of the Chabahar Port in Iran, according to an official response in the Rajya Sabha on Friday.
In response to questions about India’s commitments at Chabahar amid regional tensions and evolving U.S. sanctions, the Ministry of External Affairs stated that India had already fulfilled its contractual obligations under a ten‑year agreement signed on 13 May 2024 between India Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organization (PMO) for equipping and operating the Shahid Beheshti Terminal at Chabahar Port.
Under this contract, India contributed USD 120 million for the procurement of port equipment.
The ministry clarified that “there is no further financial commitment from the Government of India towards the port.” (Image source: Government document)
The statement also addressed U.S. sanctions developments. In September 2025, the U.S. State Department revoked a sanctions exception previously granted under the Iran Freedom and Counter Proliferation Act 2012 for Afghanistan’s reconstruction, affecting related activities through Chabahar.
Following discussions with U.S. authorities, conditional sanctions waivers were issued again on 21 April 2026.
The Government of India says it continues to engage with all stakeholders to assess and respond to these developments and safeguard its strategic and commercial interests at Chabahar.
Background: Chabahar Port, located in southeastern Iran, is a key element of India’s regional infrastructure strategy, offering access to Afghanistan and Central Asia while bypassing Pakistan.
