New Delhi
Chabahar still open to work with India: Iran’s envoy to IndiaIran is open to working with India for operations at the port of Chabahar, although there has been no official word from New Delhi on the facility after the 2026-27 budget slashed allocations for the port to zero, Iranian Ambassador Mohammad Fatali said on Friday.
Speculation over the future of India’s operations at Chabahar port’s Shahid Beheshti terminal has been rife since the abrupt closure of India Ports Global Ltd, the state-owned firm that took over operations at the port, in 2018, and the US acquiescence to working at the firm since the resignation of Indian officials late last year. Budget documents show allocations for Chabahar, revised from ₹100 crore from Rs ₹400 crore for 2025-26, falling to zero for 2026-27.
“You know that Chabahar port is vital and it can play a good role for access to Afghanistan and Central Asia. We have good relations with some countries, especially India, and believe that we should expand our relations in this regard,” Fatali said while addressing a press conference at the Iranian embassy ahead of the 47th anniversary of the Iranian revolution.
Fatali noted that the Chabahar port is part of Iran’s ability to enhance regional connectivity and questions about India’s continued involvement in developing the facility should be directed to the Indian side. “As of now, we have no comment from the Indian side,” he said.
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“We believe Chabahar is Chabahar, the location will not change and some countries use this geographical location to access Central Asia and Afghanistan,” Fatali said, emphasizing the strategic importance of the deep-water port’s location in the Gulf of Oman. “I think we have good relations with India on this issue and we believe that in future, the Indian government wants to manage the situation,” he said, without elaborating.
The government informed Parliament this week that India has fulfilled its commitment to contribute $120 million for procurement of port equipment under the terms of a 10-year contract signed in May 2024 with India Ports Global Limited and Iran’s Ports and Maritime Organization to equip and operate the Shahid Beheshti Terminal.
Minister of State for External Affairs Kirti Vardhan Singh said in a written reply in the Rajya Sabha on Thursday that the last installment of $120 million was transferred to August 26, 2025.
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Singh reiterated this in another written reply in the Lok Sabha on Friday and said that on September 16, 2025, the US State Department revoked the exception to sanctions issued in 2018 under the Iran Freedom and Counter-Proliferation Act for the reconstruction and economic development of Afghanistan.
“Based on discussions with the US side, the latter has issued guidelines to extend the conditional sanctions waiver till April 26, 2026. The Government of India is engaged with all stakeholders to address the impact of these developments,” Singh said, without elaborating.
People familiar with the matter said the two sides are exploring various options for operations at the Shahid Beheshti terminal, including creating a new firm with no exposure of government agencies and officials to US sanctions, or handing over operations to an Iranian firm for the time being.
Fatali also told the briefing that Iranian President Massoud Pezheshkian is expected to attend the BRICS summit in India later this year. He said such a visit would be “a good opportunity to strengthen our relationship with India”. He said the dates for Iran’s foreign minister Syed Abbas Araghchi’s visit to New Delhi were also being explored.
