India Has Not Said It Cannot Manage Chabahar Port: Iranian Ambassador
New Delhi: India has not told Iran it can no longer manage the Chabahar port, the Iranian ambassador in New Delhi said on Friday (February 6), endorsing expanded relations between the two sides over matters such as the “vital” connectivity project.
Ambassador Mohammad Fathali during a press conference on the occasion of the Islamic Revolution's 47th anniversary also noted that India is looking to manage “restrictions” over the port that it has developed since 2018 and which is so far shielded from US sanctions until April this year.
His remarks come against the backdrop of India making no budgetary provision for Chabahar this year having expedited the completion of its $120 million investment commitment in the port, although Indian officials have said that the development does not reflect New Delhi's ‘exit’ from the project.
Asked if he had conferred with Indian officials over the port's future, Fathali said Tehran believes the two sides should “boost” and “expand our relations” in matters such as Chabahar, which he recalled serves as a connectivity hub for Afghanistan and Central Asia.
The ambassador was then asked in connection with the zero budgetary allocation if he believes Chabahar had moved to India's back burner, to which he said: “I think that we have good relations with India in this issue and we believe that in the future … the Indian government wants to manage some restrictions.”
Months after signalling its intent to sanction the Chabahar port, the Donald Trump administration in September announced that it would revoke its sanctions exemption for the project, although India later said Washington had extended the waiver until April 26 this year. New Delhi has said it is in talks with the US government over the matter.
Fathali was also asked if India had conveyed to Tehran that it can no longer manage the port. “Up to now we have not [had] any comments from the Indian side,” the ambassador responded.
Union junior minister for external affairs Kirti Vardhan Singh confirmed in parliament this week that India has fulfilled its commitment to invest $120 million in the port, with the last payment tranche going through in August last year.
His ministry's zero allocation for Chabahar for 2026-27 breaks from its pattern of budgeting some amount for the port every year since 2016-17. That the government's actual expenditure (for 2024-25) and revised budgetary estimate (for 2025-26) rose dramatically compared to its initial provisions signalled its intent to hasten the completion of its investment commitment, The Wire has reported.
Having fulfilled this commitment India now seems to be letting the port's commercial operations fund themselves, while maintaining its broader strategic and diplomatic engagement with Iran through other means.
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