$120 million committed to Chabahar port in Iran completely paid: India

The government on Friday (February 6, 2026) told Parliament that it has completely paid up its commitment of $120 million for Chabahar port, well before the U.S. sanctions waiver runs out in April 2026.

Iran’s Ambassador to India, however, said that the government has not so far conveyed its plans for the future of the port, even as Opposition MP Manish Tewari accused the government of acting prematurely to “opt out” of the port deal.  

The government’s statement, that comes days after it ended its annual budget allocation for Chabahar port in the annual Budget for 2026-27, indicates it will be unable to manage the port unless the U.S. withdraws sanctions. Rather than risk a drawn-out process later, the government appears to have disbursed its total standing commitment, made in a 10-year MoU with Iran, signed in May 2024.

‘Commitment fulfilled’

“India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment,” the Ministry of External Affairs (MEA) said in its response to a query in the Lok Sabha.

“Pursuant to discussions with the U.S. side, the [U.S.] 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,” the MEA said.

‘Premature withdrawal’

The Ministry was replying to specific questions from Congress MP Manish Tewari on whether it had decided to reduce its engagement with the Chabahar project and withdrawn personnel from the port. Mr. Tewari accused the government of “officially giving up” on plans for the warm-water port on Iran’s south-eastern coast, which India began to develop in 2003.  

“India may have acted prematurely by opting out of the Chabahar Port project that would have been an important catalyst even in the re-engagement with the Taliban regime in Afghanistan, in addition to keeping the doors to Central Asia open,” Mr. Tewari told The Hindu, pointing to U.S.-Iran talks that began in Oman on Friday.

U.S. President Donald Trump has threatened major strikes on Iran in response to its crackdown on protestors, but U.S. and Iranian officials met in Oman to try and avoid an escalation in tensions. Along with sanctions that could be implemented over the Chabahar project, the U.S. has also threatened India with 25% tariffs if it continues to trade with Iran. Since 2019-2020, when Mr. Trump had threatened sanctions, India has also “zeroed out” all oil imports from Iran, and has not restarted them.

Iran awaits India’s move

Iranian Ambassador to India Mohammad Fathali told journalists on Friday (February 6, 2026) that he believes Delhi would like to try and resolve the issue without giving up its interest in Chabahar. India has been using the port for access to Afghanistan, to transport humanitarian aid and food supplies.  

Dr. Mohammad Fathali, Ambassador of the Islamic Republic of Iran, addressing a news conference at Embassy of The Islamic Republic of Iran in New Delhi on Friday, February 6, 2026.
| Photo Credit:
SHIV KUMAR PUSHPAKAR

“We have a good relation with India in this issue, and we believe that the Indian government wants to manage this [port],” Mr. Fathali said at a press conference.

“It is up to any country that wants to use it, particularly India, to decide [its plans]. So this question should be asked to [the Indian government]. Until now, we have no comments from the Indian side [on this issue],” Mr. Fathali said, in response to questions about the government’s moves on Chabahar.

He also said that a possible visit by Iranian President Masoud Pezeshkian, for the BRICS summit in India later this year, would be a “good opportunity for boosting [Iran’s] relations with India”.