India remains engaged with US over Chabahar port sanctions; fulfills $120 million obligation

New Delhi: India is engaging with relevant stakeholders regarding conditional exemption from US sanctions on India, the Ministry of External Affairs said on Tuesday. chabahar port In Iran, it is valid until April 26, 2026.The Chabahar Port project is conceived to provide necessary connectivity for reconstruction and economic development in Afghanistan and to strengthen trade and economic ties with Central Asia.On May 13, 2024, Indian Ports Global Limited (IPGL) signed a ten-year contract with the Ports and Maritime Organization of the Islamic Republic of Iran to equip and operate Shahid Beheshti Terminal at Chabahar Port. According to the contract, India fulfilled its commitment to invest US$120 million in purchasing port equipment. Highlighting the financial performance in a written reply to CPI(M) MP John Brittas, Minister of State for Middle East and Africa Kirti Vardhan Singh said: “On May 13, 2024, Indian Ports Global Limited (IPGL) signed a ten-year contract with Iran’s Ports and Maritime Organization (PMO) to equip and operate the Shahid Beheshti Terminal at Chabahar port. As per the terms of the contract, India has fulfilled its commitment to provide US dollars to Iran. 120 million is used to purchase port equipment. Therefore, the Indian government has made no further financial commitment to the port. “Singh also talked about changes in the US sanctions framework. “On September 16, 2025, the U.S. Department of State revoked the sanctions exception issued in 2018 under the Iran Freedom and Counterproliferation Act of 2012 for Afghanistan reconstruction and economic development, effective September 29, 2025. Based on discussions with the United States, the latter issued guidance to extend the conditional sanctions exemption period until April 26, 2026. The Government of India remains engaged with all relevant parties to address the implications of these developments. “Earlier, in January 2026, MEA spokesperson Randhir Jaiswal reiterated India’s continued engagement with the US, saying: “Regarding the Chabahar issue, as you are aware, the US Treasury Department issued a letter on October 28, 2025 outlining guidance on conditional sanctions exemptions, which is valid until April 26, 2026. We will continue to work with the US side on this arrangement.”