The government on Friday (February 6, 2026) told Parliament that it has completely paid up its commitment of $120 million for Chabahar port, well before the U.S. sanctions waiver runs out in April 2026.

Chabahar Port: Port of contention

Iran’s Ambassador to India, however, said that the government has not so far conveyed its plans for the future of the port, even as Opposition MP Manish Tewari accused the government of acting prematurely to “opt out” of the port deal.

Union Budget 2026: India makes no fresh allocation for Chabahar port in Budget as U.S. increases pressure on Iran​

The government’s statement, that comes days after it ended its annual budget allocation for Chabahar port in the annual Budget for 2026-27, indicates it will be unable to manage the port unless the U.S. withdraws sanctions. Rather than risk a drawn-out process later, the government appears to have disbursed its total standing commitment, made in a 10-year MoU with Iran, signed in May 2024.