Government Engages Stakeholders Over Chabahar Port Project

06 Aug 2026 CW Team

The minister noted that the Chabahar Port project was conceptualised to provide essential connectivity to Afghanistan for reconstruction and economic development, and to bolster India's trade and economic linkages with Central Asia. He said an Indian government-owned company, India Ports Global Limited (IPGL), through its wholly-owned subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), has been operating the port since 2018. The response described the strategic intent underpinning India's engagement. IPGCFZ was described as the operational entity overseeing port functions.

The minister set out that, as per the provisions of the main contract signed between IPGL and the Ports and Maritime Organisation of Iran (PMO) on May 13, 2024, India has fulfilled its financial commitment of USD 120 mn towards the project. He indicated that the final tranche of this amount was transferred to the PMO in August 2025. The contractual and financial disclosures were set out to inform parliament of the extent of India's engagement.

Following the end of the conditional waiver, the government remains engaged with all concerned stakeholders to address the implications of that development, the minister informed the Lok Sabha. Officials will continue to review the situation and coordinate with partners to safeguard connectivity objectives for Afghanistan and the wider regional trade agenda. The government said it will assess options and take decisions in accordance with national interests and international obligations. The minister's reply underlined that India remains committed to facilitating regional connectivity while complying with applicable international measures.

The government told the Lok Sabha that it has engaged with concerned stakeholders after the conditional sanctions waiver for the Chabahar Port project ended on April 26. The written response from the Minister of State for External Affairs, Kirti Vardhan Singh, addressed a parliamentary query on the status of India's involvement in the development and operation of the Shahid Beheshti Terminal at Chabahar Port. The query also sought details of the total investments made by India between May 2015 and March 2026. The response was provided in writing to a question tabled by members of parliament. The minister noted that the Chabahar Port project was conceptualised to provide essential connectivity to Afghanistan for reconstruction and economic development, and to bolster India's trade and economic linkages with Central Asia. He said an Indian government-owned company, India Ports Global Limited (IPGL), through its wholly-owned subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), has been operating the port since 2018. The response described the strategic intent underpinning India's engagement. IPGCFZ was described as the operational entity overseeing port functions. The minister set out that, as per the provisions of the main contract signed between IPGL and the Ports and Maritime Organisation of Iran (PMO) on May 13, 2024, India has fulfilled its financial commitment of USD 120 mn towards the project. He indicated that the final tranche of this amount was transferred to the PMO in August 2025. The contractual and financial disclosures were set out to inform parliament of the extent of India's engagement. Following the end of the conditional waiver, the government remains engaged with all concerned stakeholders to address the implications of that development, the minister informed the Lok Sabha. Officials will continue to review the situation and coordinate with partners to safeguard connectivity objectives for Afghanistan and the wider regional trade agenda. The government said it will assess options and take decisions in accordance with national interests and international obligations. The minister's reply underlined that India remains committed to facilitating regional connectivity while complying with applicable international measures.

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