India in continuous discussions over Chabahar Port amid US policy changes

NEW DELHI : The Government informed Parliament about key developments concerning the Chabahar Port project, stating that it remains in continuous dialogue with all stakeholders regarding the implications of recent changes in US sanctions and tariff policies on India.

Leader of the Opposition in the Rajya Sabha, Mallikarjun Kharge, sought clarification from the government on whether the impact of these policy changes has been assessed and asked for details on the financial commitments and expenditure made by India towards the project over the past five years.

In a written response, Minister of State for External Affairs Kirti Vardhan Singh said that a long-term contract was signed on May 13, 2024, between India Ports Global Limited and Iran’s Ports and Maritime Organization for the operation and supply of equipment at the Shahid Beheshti Terminal of Chabahar Port. He stated that India has fulfilled its commitment of US$120 million for port equipment procurement, with the final installment transferred on August 26, 2025.

Kharge also inquired whether diplomatic engagements had taken place with the United States or other partners over the past two years regarding the project, and what contingency measures were being prepared to ensure India’s continued participation. The Minister noted 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, which had supported the reconstruction and economic development of Afghanistan. The withdrawal was to take effect from September 29, 2025. However, following discussions with the US, the waiver was conditionally extended until April 26, 2026.

He added that the Government of India is actively engaging with all relevant stakeholders to address the evolving situation and safeguard its interests in the Chabahar Port project.