Chabahar Port: India Completes Payment of $120 Million Commitment.

The government recently informed Parliament that India has fully paid its $120 million commitment for the development of Iran’s Chabahar port, well ahead of the expiry of the U.S. sanctions waiver in April 2026.

The disclosure comes days after the Union Budget for 2026–27 made no fresh allocation for the project, fuelling questions about India’s future role at the strategically important port. The Ministry of External Affairs (MEA) said the payment fulfilled India’s obligations under a 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 said in a written reply in the Lok Sabha.

The Ministry added that following discussions with Washington, the U.S. had issued guidance extending the conditional sanctions waiver for Chabahar until April 26, 2026. “The Government of India remains engaged with all concerned in order to address the implications of these developments,” it said.

The response was given to questions from Congress MP Manish Tewari, who sought clarification on whether the government had decided to scale down its engagement with the project or withdraw Indian personnel from the port. Mr. Tewari accused the government of acting prematurely and “officially giving up” on the warm-water port project on Iran’s southeastern coast, which India began developing in 2003.

Iran’s Ambassador to India, Mohammad Fathali, said New Delhi had not yet conveyed its plans for the future management of the port. He expressed the view that India would prefer to resolve the issue without abandoning its strategic interests in Chabahar, which has been used to provide India access to Afghanistan for humanitarian aid and food supplies.

The government’s statement, coming soon after the removal of budgetary support for the project, suggests that India may be constrained in continuing operations at the port unless U.S. sanctions are lifted. Officials indicated that by disbursing the full committed amount in advance, the government may have sought to avoid complications arising from a prolonged sanctions-related process later.

Mr. Tewari said Chabahar could have played a key role in India’s engagement with Afghanistan and in maintaining access to Central Asia, particularly at a time when the U.S. and Iran have resumed talks in Oman to ease tensions. U.S. President Donald Trump has warned of major action against Iran, even as Washington has also threatened India with steep tariffs if it continues trade with Tehran.

Since 2019–20, amid earlier sanctions threats, India has halted crude oil imports from Iran and has not resumed them.