India Completes Financial Commitment for Chabahar Port, No Further Obligations Pending

New Delhi: The Ministry of External Affairs has announced ongoing discussions with relevant stakeholders regarding the conditional sanctions waiver from the United States for the Chabahar Port in Iran, which is valid until April 26, 2026. Minister of State in the MEA, Kirti Vardhan Singh, addressed this in a written response to CPI(M) MP John Brittas in the Rajya Sabha. Singh confirmed that India has completed its financial obligation of USD 120 million for the procurement of equipment related to the port, asserting that there are no additional financial commitments pending from India in relation to the Chabahar project.

Singh elaborated on the contractual agreement made on May 13, 2024, between India Ports Global Limited (IPGL) and the Ports and Maritime Organization of Iran. The ten-year contract covers the equipping and operational management of the Shahid Beheshti Terminal at Chabahar Port. The Minister emphasized that India has fulfilled its part of the agreement concerning financial contributions for port equipment, thus indicating the conclusion of its financial involvement.

During the session, Singh also provided details on the United States’ sanctions history, stating that on September 16, 2025, the U.S. State Department revoked a sanctions exception that was granted in 2018 under the Iran Freedom and Counter Proliferation Act of 2012. This revocation became formally effective on September 29, 2025. In light of discussions held with U.S. officials, a guidance was issued extending the conditional sanctions waiver until April 26, 2026. The Indian government is actively engaging with all relevant parties to navigate the ramifications of these regulatory changes.

The Chabahar Port initiative was established to enhance connectivity for Afghanistan to aid its reconstruction and economic growth and to strengthen trade relations with Central Asia. The project’s significance is underscored by its potential contributions to regional economic development.

In January 2026, spokesperson for the Ministry of External Affairs, Randhir Jaiswal, reiterated the importance of the Chabahar project. Citing a letter from the U.S. Department of the Treasury dated October 28, 2025, Jaiswal confirmed the ongoing discussions regarding the Conditional Sanctions Waiver valid until April 26, 2026. The Ministry remains committed to cooperating with the U.S. to finalize arrangements related to the project.

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