Recent developments cast shadow on Chabahar Port's future, says Parliamentary panel

NEW DELHI: A parliamentary panel has cautioned that recent developments have clouded the future of the Chabahar Port project, even as India continues to engage with stakeholders to address the impact of renewed US sanctions on Iran.

In its report on the Demands for Grants, the Parliamentary Committee on External Affairs noted that Rs 100 crore was allocated for the development of Chabahar Port in the 2025-26 budget, later raised to Rs 400 crore in the revised estimates, with the entire amount utilised by January 2026.

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MEA informed the panel that no funds were sought for 2026-27 as India has already fulfilled its contractual commitment of $120 million for port equipment procurement under the main deal signed in 2024.

The report was tabled in the Lok Sabha by the committee chaired by Congress MP Shashi Tharoor.

On the current status of the project, MEA informed the panel that the US State Department revoked in September last year the sanctions waiver granted in 2018 under the Iran Freedom and Counter-Proliferation Act - a waiver that had allowed India's participation in Chabahar for Afghanistan's reconstruction. The waiver formally lapsed on September 29, 2025, but was conditionally extended until April 26, 2026, following further discussions with Washington. "The recent development has cast a shadow on the future of Chabahar Port," the committee observed.

The panel welcomed the government's continued diplomatic efforts and urged MEA to keep it informed of all future plans and progress. The ministry also detailed India's expenditure on the project, stating that Rs 300 crore had been allocated - Rs 100 crore each in the past three financial years - while total spending has reached Rs 900 crore.