The government on Friday informed Parliament that India has fully paid its committed investment of USD 120 million for Iran’s Chabahar port, completing the payment well before the U.S. sanctions waiver expires in April 2026. However, the move has sparked political controversy and raised questions over India’s future role in managing the strategic port.
In a written reply to the Lok Sabha, the Ministry of External Affairs (MEA) said India has fulfilled its obligation under the 10-year Memorandum of Understanding signed with Iran in May 2024. “India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment,” the MEA stated.
The clarification came in response to questions from Congress MP Manish Tewari, who accused the government of acting prematurely and effectively “opting out” of the Chabahar port project. He pointed to the government’s decision to end annual budgetary allocations for the port in the Union Budget 2026–27 as an indication that India may be stepping back from operational involvement.
The MEA acknowledged that the U.S. has extended a conditional sanctions waiver for the Chabahar project until April 26, 2026, following discussions between New Delhi and Washington. “The Government of India remains engaged with all concerned to address the implications of these developments,” it said, amid uncertainty over whether the waiver will be further extended.
Mr. Tewari warned that reducing engagement with Chabahar could weaken India’s strategic access to Afghanistan and Central Asia. He argued that the port could also play a role in any future re-engagement with Afghanistan, especially as U.S.-Iran talks have resumed in Oman.
The geopolitical context remains fraught. U.S. President Donald Trump has threatened tougher action against Iran, including sanctions and tariffs. Washington has also warned of a 25% tariff on Indian goods if New Delhi continues trade with Tehran. India has already halted oil imports from Iran since 2019–20 and has not resumed them.
Iran’s Ambassador to India, Mohammad Fathali, said Tehran has not yet received any clarity from New Delhi on its plans for the port. “We believe that the Indian government wants to manage this port,” he said, adding that the decision ultimately rests with India.
Chabahar port has been a key conduit for India’s humanitarian aid and food supplies to Afghanistan. Ambassador Fathali also said a possible visit by Iranian President Masoud Pezeshkian to India for the BRICS summit later this year could provide an opportunity to strengthen bilateral ties.
