Iran backs Chabahar port, ready to expand ties with India

NEW DELHI: Iran has backed the Chabahar port and cooperation with India amid the uncertainty looming over the project because of ongoing US efforts to isolate Iran, including the Trump administration's decision last year to revoke a sanctions waiver that allowed India to develop a terminal at the port. While Washington extended the waiver till April 26 after talks with the Indian side, there's little hope of another extension in the current circumstances. The Union Budget this year saw zero allocation for the port but govt has defended the decision saying it has already transferred the entire committed amount of $120 million to Iran. However, India has not backed out of the project or its commitment to extend a $250 million line of credit for further development of the port, according to a 10-year contract signed in 2024.

This commitment is not time bound though. "The port of Chabahar is vital, and it can play a good role in accessing Afghanistan and central Asia. We have a good relationship with some countries, particularly India. I believe we should boost and expand our relations," said Iran's ambassador to India, Mohammad Fathali. "Chabahar is Chabahar. The location is not going to change. I think the Indian side wants to manage the situation," he added.