Chabahar Port: India in Talks with Stakeholders Amid US Sanctions Changes, Govt Tells Parliament

On Thursday, the government revealed important information regarding the Chabahar port project in Parliament. The government told Parliament that it is in constant dialogue with all stakeholders regarding the impact of the recent changes in the US policy of sanctions/tariffs on India.

The Leader of the Opposition in the Upper House of Parliament, Mallikarjun Kharge, posed questions to the government about whether the impact of these changes has been assessed and the amount of money India has committed and spent for the development and operation of the project over the last five years.

In a written reply, Minister of State for External Affairs Kirti Vardhan Singh stated that on May 13, 2024, a master contract was signed between India Ports Global Limited and the Ports and Maritime Organization of Iran for the operation and supply of equipment for the Shahid Beheshti Terminal at Chabahar Port. Under this agreement, India has fulfilled its obligation of US$120 million for the purchase of port equipment. The final installment was transferred on August 26, 2025.

Kharge also wanted to know whether any diplomatic discussions have taken place with the US or other partners regarding this project in the past two years and what contingency plans are being prepared to continue India's participation.

The Minister stated that on September 16, 2025, the US Department of State announced the withdrawal of sanctions waivers granted in 2018 under the Iran Freedom and Counter-Proliferation Act of 2012 for the reconstruction and economic development of Afghanistan, effective September 29, 2025. However, after discussions with the US, this exemption was extended with conditions until April 26, 2026. The Minister said that the Government of India is actively engaged with all relevant parties to address the implications of these developments.