New Delhi: The Ministry of External Affairs (MEA) on Thursday confirmed that India has completed its financial commitment to the strategic Chabahar Port project in Iran. The government also stated that it continues to engage stakeholders on the port’s future amid evolving geopolitical dynamics and uncertainties linked to sanctions.
In response to an unstarred question in the Rajya Sabha, Minister of State for External Affairs Kirti Vardhan Singh said India had allocated Rs 400 crore for Chabahar Port’s development in the 2025-26 financial year, with the final tranche disbursed in August last year. Under the contract between India Ports Global Limited and Iran’s Ports and Maritime Organisation, India had pledged a total of USD 120 million for port equipment. No additional funds were allocated in the 2026-27 Union Budget, as no further financial requirement exists at this stage.
MEA spokesperson Randhir Jaiswal added that the US sanctions waiver for Chabahar Port remains valid until April 26, 2026. He said India is actively engaging with all relevant stakeholders to address implications arising from the evolving situation.
Strategically, Chabahar Port plays a vital role in enhancing India’s connectivity to Afghanistan and Central Asia, bypassing Pakistan. However, the project continues to operate under the shadow of US sanctions on Iran. Its future trajectory will depend on geopolitical developments, particularly the sanctions regime and regional stability, even as India emphasizes the port’s long-term strategic and economic significance.