Recent development has cast shadow future of Chabahar Port’s: Parliamentary panel
The “recent development” has cast a shadow on the future of Chabahar Port, a vital and strategic port for India, a parliamentary panel on external affairs has said, and welcomed that the Centre “remains engaged” with all concerned parties in order to address the implications of these developments.
The ‘Twelfth Report of the Committee on External Affairs (2025-26) on Demands for Grants (2026-27)’ of the Ministry of External Affairs (MEA), was presented in Parliament on Tuesday. The Committee of External Affairs is headed by Congress MP Shashi Tharoor.
The observation by the panel, assumes significance as it comes amid the ongoing West Asia conflict and in the backdrop of the recent changes in US sanctions or tariff policies on India’s participation in the Chabahar project.
“The Committee find that for the development of Chabahar Port, an amount of `100 crore was allocated at BE (Budget estimate) 2025-26, which was increased to Rs 400 crore at RE (revised estimate). The allocated amount had been fully utilised by January 2026,” the report says.
The MEA has informed the panel that “no amount has been allocated under the head during 2026-27 as India has already fulfilled its commitment of contributing $120 million” for the procurement of port equipment, according to the main contract signed in 2024. The committee said it is also aware of the fact that 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. Pursuant to discussions with the US side, the latter issued guidance extending the conditional sanctions waiver until April 26, 2026,” the report says.
“Besides, the recent development has cast a shadow on the future of Chabahar Port,” the panel says.
The committee is of the view that Chabahar is a “vital and strategic port for India”, as it provides access to Afghanistan and Central Asia. It is also a key port for connecting with the International North South Transport Corridor (INSTC).
The committee said it welcomes that “the Government of India remains engaged with all concerned parties in order to address the implications of these developments. The Committee desire that the ministry may keep the Committee apprised of all the plans and progress in this regard,” the report says.
On February 5, the government had told Parliament 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.
“As per the main contract signed 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 of Chabahar Port on 13 May 2024, India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment,” Minister of State for External Affairs Kirti Vardhan Singh had said in a written response.
The last tranche was transferred on August 26, 2025, he had said.
