Fulfilled $120-mn commitment for Chabahar: MEA tells Parl

“The last tranche of the committed amount was transferred on August 26, 2025,” the minister said, underscoring India’s continued engagement with the project despite evolving geopolitical and sanctions-related challenges.

The MEA’s statement makes it clear that while India had met its contractual financial obligations, it was closely monitoring the sanctions environment and engaging with partners, including the US, to ensure continuity of operations at the port.

The government also acknowledged the impact of recent changes in the US' sanctions policy. Singh mentioned that on September 16, 2025, the US State Department revoked the sanctions exception granted in 2018 under the Iran Freedom and Counter Proliferation Act, which had allowed activities linked to Afghanistan’s reconstruction and economic development. The revocation became effective from September 29, 2025.

However, following discussions between New Delhi and Washington, the US side issued guidance extending a conditional sanctions waiver for India’s participation in Chabahar until April 26, 2026, the MEA told the House.

“The Government of India remains engaged with all parties concerned to address the implications of these developments,” Singh said, indicating continued diplomatic outreach to safeguard India’s interests in the project.

The Chabahar Port is seen as a key pillar of India’s regional connectivity strategy, providing access to Afghanistan and Central Asia while bypassing Pakistan. The project has also been viewed internationally as vital for humanitarian assistance and economic stability in the region.