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India Fulfills $120M Chabahar Port Commitment, Engages US on Sanctions Waiver

India's Ministry of External Affairs has confirmed the country has fulfilled its $120 million financial commitment for equipment at Iran's Chabahar Port, with no further funding required from New Delhi. The statement came in a parliamentary reply by Minister of State Kirti Vardhan Singh, detailing a 10-year contract signed in May 2024 to operate the port's terminal. The government is engaged with the United States, which has issued a conditional sanctions waiver for the port project valid until April 2026, following the revocation of a previous exception. The port is a strategic project aimed at providing connectivity to Afghanistan for reconstruction and enhancing trade links with Central Asia.

Key Points: India's Chabahar Port Financial Commitment Complete, MEA Confirms

  • $120M port equipment funding complete
  • No further Indian financial commitment
  • US sanctions waiver extended to April 2026
  • Port key for Afghanistan, Central Asia trade
  • 10-year operation contract signed in 2024
2 min read

India remains engaged with all concerned, no further financial commitment remaining: MEA on Chabahar Port

India has met its $120M equipment funding for Iran's Chabahar Port. MEA states no further financial commitment, engages US on extended sanctions waiver.

"India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment. - Kirti Vardhan Singh"

New Delhi, March 24

The External Affairs Ministry on Tuesday said that India is engaging with concerned stakeholders over the United States' conditional sanctions waiver till April 26 for the Chabahar Port in Iran..

In a written reply to CPI(M) MP John Brittas in the Rajya Sabha, Minister of State in MEA, Kirti Vardhan Singh, said that India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment, and there is no further financial commitment from New Delhi towards Chabahar Port.

Kirti Vardhan Singh said, "On 13 May 2024, India Ports Global Limited (IPGL) signed a ten-year contract with the Ports and Maritime Organisation (PMO) of Iran for equipping and operating the Shahid Beheshti Terminal at Chabahar Port. Under the provisions of the contract, India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment. Therefore, there is no further financial commitment from the Government of India towards the port."

"On 16 September 2025, the US State Department revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter Proliferation Act of 2012 for Afghanistan's reconstruction and economic development, effective 29 September 2025. Pursuant to discussions with the US side, the latter issued guidance extending the conditional sanctions waiver until 26 April 2026. The Government of India remains engaged with all concerned in order to address the implications of these developments," Singh said.

The Chabahar Port project was conceptualised to provide much-needed connectivity to Afghanistan for its reconstruction and economic development, and to boost trade and economic linkages with Central Asia.

On 13 May 2024, IPGL signed a ten-year contract with the Ports and Maritime Organisation of the Islamic Republic of Iran to equip and operate the Shahid Beheshti Terminal at Chabahar Port. Under the contract, India has fulfilled its commitment to contribute USD 120 million toward the procurement of port equipment.

In January 2026, Ministry of External Affairs spokesperson Randhir Jaiswal stated, "On the question of Chabahar, on 28 October, 2025, as you are aware, the US Department of the Treasury had issued a letter outlining guidance, the guidance on the Conditional Sanctions Waiver, which is valid until 26 April 2026. We remain engaged with the US side in working out this arrangement."

- ANI

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Reader Comments

S
Sarah B
Interesting to see the delicate balancing act India has to play between its strategic interests in Iran and its relationship with the US. The conditional waiver until April 2026 gives some breathing room, but long-term clarity is needed for trade planning.
V
Vikram M
Good that our money has been put to use for the port equipment. This project is not just about business; it's about humanitarian aid and connectivity to landlocked Afghanistan. Hope the MEA can navigate the US sanctions issue successfully. Jai Hind!
R
Rohit P
While the strategic importance is clear, I hope the government is also transparent about the operational costs and revenue projections for IPGL going forward. Taxpayers deserve to know the full financial picture, not just the initial commitment.
P
Priya S
Connectivity to Central Asia is a game-changer for Indian trade. Chabahar port can be a real alternative route. Fingers crossed the diplomacy works out. 🤞
M
Michael C
The ten-year contract is a significant long-term investment. It shows India's commitment to being a key player in regional infrastructure and trade networks, despite the complex geopolitical hurdles.

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