The Government of India has completed its financial commitment towards the development of Chabahar Port, with the full allocation of ₹400 crore for the financial year 2025–26 disbursed by August 2025. As a result, no additional funds have been earmarked for the project in the Union Budget 2026–27.
The disclosure was made in response to a query raised in the Rajya Sabha by Ramji Lal Suman of the Samajwadi Party, who sought details regarding India’s investment in the strategically significant Iranian port.
Replying on behalf of the Ministry of External Affairs, Minister of State Kirti Vardhan Singh stated that the government had allocated ₹400 crore during FY 2025–26, with the final tranche released in August 2025. He added that under the main contract between India Ports Global Limited and Iran’s Ports and Maritime Organisation, India has fulfilled its financial obligation of contributing USD 120 million for the procurement of port equipment.
“With the contractual commitments fully met, there was no requirement for further budget allocation for Chabahar Port in FY 2026–27,” the minister said.
The development underscores the completion of India’s agreed financial role in the project, even as it continues to maintain operational involvement at the port through IPGL.
Chabahar Port remains strategically important for India, offering a vital trade corridor to Afghanistan and Central Asia while bypassing Pakistan, amid evolving regional geopolitical dynamics.
