The government told Parliament on Thursday that it “remains engaged” with all parties concerned in order to address the implications of recent changes in US sanctions or tariff policies on India’s participation in the Chabahar project.
The Indian government informed Parliament on Thursday that it is “continuing its engagement” with all relevant stakeholders to address the impact of recent changes in US sanctions or tariff regimes on India’s role in the Chabahar port project.
Raising the issue in the Rajya Sabha, Leader of the Opposition Mallikarjun Kharge asked whether the government had evaluated the potential consequences of these policy shifts. The Congress leader also sought details of the financial commitments made by India and the expenditure incurred on the development and operation of Iran’s Chabahar Port over the past five years.
Responding in writing, Minister of State for External Affairs Kirti Vardhan Singh said that under the main contract signed on May 13, 2024, between India Ports Global Limited and the Ports and Maritime Organisation of the Islamic Republic of Iran for equipping and operating the Shahid Beheshti Terminal, India has met its obligation of contributing $120 million for the purchase of port equipment.
He added that the final instalment of this amount was transferred on August 26, 2025.
Kharge also queried whether the Ministry of External Affairs had held any diplomatic discussions with the United States or other key partners in the last two years regarding India’s participation in the Chabahar Port project. He further sought information on any “contingency plans” under consideration to ensure India’s continued involvement in the project.
”On September 16, 2025, the US State Department in a press statement revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter Proliferation Act, 2012, for Afghanistan’s reconstruction and economic development, effective September 29, 2025,” the minister said.
”Pursuant to discussions with the US side, the latter issued guidance extending the conditional sanctions waiver until April 26, 2026. The Government of India remains engaged with all concerned parties in order to address the implications of these developments,” he added.
With inputs from agencies
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