New Delhi: India has fulfilled its financial obligation of contributing USD 120 million for the development and operations of Iran’s Chabahar port, the Ministry of External Affairs (MEA) informed Parliament on Friday.
Responding to a query in the Rajya Sabha, Minister of State for External Affairs Kirti Vardhan Singh said the contribution was made under the primary agreement signed on May 13, 2024, between India Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organisation. The agreement covers the equipping and management of the Shahid Beheshti Terminal, a key facility at the strategically important port.
The minister stated that the final instalment of the committed amount was transferred on August 26, 2025, marking the completion of India’s financial responsibilities under the contract. He added that New Delhi continues to stay engaged with the project while keeping a close watch on the evolving international sanctions landscape.
The MEA acknowledged that recent changes in the United States’ sanctions policy have had implications for the project. Singh informed the House that on September 16, 2025, the US State Department withdrew the sanctions exemption granted in 2018 under the Iran Freedom and Counter Proliferation Act. This exemption had earlier allowed certain activities linked to Afghanistan’s reconstruction and economic development, and its withdrawal came into effect on September 29, 2025.
However, following diplomatic discussions between India and the US, Washington issued fresh guidance allowing a conditional sanctions waiver for India’s involvement in Chabahar until April 26, 2026. According to the MEA, this extension provides temporary operational continuity for the project.
Singh said the government remains in touch with all relevant stakeholders to address the challenges arising from the changing sanctions regime and to protect India’s strategic and economic interests.
Chabahar port is considered a crucial component of India’s regional connectivity plans, offering access to Afghanistan and Central Asia while bypassing Pakistan. The project is also regarded as significant for facilitating humanitarian aid and promoting economic stability across the wider region.
