India has reiterated that exiting Iran’s strategically crucial Chabahar Port project is “not an option” X
India

Modi Government Under Intense Scrutiny for Allegedly Ceding Iran’s Chabahar Port Project Worth Over $120 Million in Taxpayer Money Under US Pressure

India has ruled out exiting Iran’s strategic Chabahar Port project, citing ongoing US sanctions waiver talks till April 2026, as Congress accuses the Modi government of yielding to American pressure.

Author : Varsha Pant

Key Points:

India’s Ministry of External Affairs has clarified that leaving Iran’s strategically vital Chabahar Port project is “not an option”
The US has granted a sanctions waiver allowing Chabahar operations until April 26, 2026, while India and the US continue diplomatic talks.
Congress has accused the Modi government of yielding Chabahar to US pressure, a claim the government denies, saying talks are ongoing.

India has reiterated that exiting Iran’s strategically crucial Chabahar Port project is “not an option,” even as renewed US sanctions and tariff threats intensify pressure on countries engaging with Tehran. The clarification from the Ministry of External Affairs (MEA) comes amid widespread reports and political criticism suggesting that India may be scaling back its presence at the port.

MEA spokesperson Randhir Jaiswal said India continues to engage with the United States to implement a conditional sanctions waiver that allows operations at Chabahar to continue until April 26, 2026. The waiver was issued by the US Department of the Treasury on October 28, 2025.

“As you are aware, the US has outlined guidance on a conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Jaiswal said during a weekly press briefing.

Located in Iran’s Sistan-Balochistan province on the Gulf of Oman, Chabahar is Iran’s only ocean-access port and holds immense strategic value for India. It provides New Delhi with a direct maritime route to Afghanistan and Central Asia while bypassing Pakistan, whose territory blocks India’s overland access to the region.

The port is also a key component of the International North–South Transport Corridor (INSTC), a multimodal trade route linking India with Iran, Central Asia, Russia, and Europe. Indian officials have repeatedly described Chabahar as central to India’s long-term connectivity, trade, and regional influence.

In May 2024, India Ports Global Ltd (IPGL) signed a 10-year agreement with Iran to operate the Shahid Beheshti terminal at Chabahar, committing investments worth about $120 million. Earlier media reports suggested that India may have assured the US it would wind down operations at Chabahar in return for a six-month sanctions exemption. Government sources, however, said negotiations are ongoing.

Officials noted that the waiver remains valid and provides time for diplomatic engagement, including upcoming talks between External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio.

Congress alleges capitulation to US pressure

Amid the uncertainty, the Congress party launched a sharp attack on the Modi government on January 16, 2026, alleging that India has effectively ceded control of Chabahar Port under pressure from US President Donald Trump.

In a post on X, Congress claimed that Prime Minister Narendra Modi had “bowed before Trump’s pressure” and compromised India’s national interest. The party alleged that despite spending over $120 million of taxpayers’ money on the project, India has lost control of the port, pointing to reports that the India Ports Global Ltd website has been taken down.

“Chabahar is a significant port, providing India with a crucial and direct maritime route to Afghanistan and Central Asia, allowing us to bypass Pakistan and counter China’s Belt and Road Initiative,” the Congress post said.

“Why is India’s foreign policy being dictated from America’s White House?” the party asked, accusing the government of remaining silent after once projecting Chabahar as a major strategic and economic achievement.

The government has not directly responded to the Congress’s allegations but has maintained that India’s engagement at Chabahar remains under discussion and that no decision to exit the project has been taken.

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