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India Confirms Chabahar Funding Complete as Budget Falls to Zero

A US waiver for Indian operations runs only until April 26.

Overview

  • The External Affairs Ministry told Parliament that India has fulfilled its USD 120 million commitment to procure equipment for Chabahar’s Shahid Beheshti Terminal, with the final tranche paid on August 26, 2025.
  • The US revoked a 2018 sanctions exception on September 16, 2025, later issuing guidance that conditionally permits India’s Chabahar activities until April 26, 2026, and New Delhi says it remains engaged with all concerned parties.
  • India’s 2026–27 Union Budget makes no allocation for Chabahar, and Finance Minister Nirmala Sitharaman acknowledged the project’s importance without detailing future funding.
  • Iran’s ambassador called Chabahar vital for access to Afghanistan and Central Asia, said Tehran is open to expanding cooperation with India, and noted Iran has not received a formal plan from New Delhi.
  • Iranian officials said eight of the 16 Indian sailors detained in December have been released, with the remainder required for ongoing vessel operations pending case resolution.