India Completes Financial Commitments for Chabahar Port; No Fresh Allocation in 2026-27 Budget: MEA

New Delhi: The Government of India has fulfilled its financial obligations towards the development of Chabahar Port in Iran, with the entire allocated amount of ₹400 crore for the financial year 2025-26 transferred by August 2025. Consequently, no additional budget provision has been made for the port in the Union Budget 2026-27.

The disclosure came in response to a question raised by Rajya Sabha MP Ramji Lal Suman from the Samajwadi Party, who sought details on India's investment in the strategically important Chabahar Port.

In a written query, Suman had asked: 
"(a) whether Government had allocated 400/- crores for Chabahar port in Iran during 2025-26; (b) if so, the details thereof,
(c) whether Government has not allocated any funds for the said port during Union Budget 2026-27;
(d) if so, the details thereof and the reasons thereof;
(e) whether the Ministry had not sought any fund from the Ministry of Finance for the same; and 
(f) if so, the reasons thereof?"

Replying on behalf of the Ministry of External Affairs, Minister of State for External Affairs Kirti Vardhan Singh stated: "Government had allocated INR 400/- crore for Chabahar Port in the FY 2025-26. The last tranche of this amount was transferred in August 2025. As per the provisions of the main contract signed between the India Ports Global Limited (IPGL) and the Ports and Maritime Organisation of Iran (PMO), India has fulfilled its financial commitment of contributing USD 120 million for the procurement of port equipment. Therefore, there was no further requirement of budget allocation for Chabahar Port for the FY 2026-27."

The response clarifies that India's contractual commitments under the agreement with Iran have been fully met, eliminating the need for further budgetary support in the next financial year. Chabahar Port holds significant strategic importance for India as it provides an alternative access route to Central Asia and Afghanistan, bypassing Pakistan.

This development comes amid ongoing regional geopolitical considerations, with India continuing to maintain its operational presence at the port through IPGL.