Chabahar | Pakistan

NEW DELHI:  Responding to renewed US sanctions, India transferred approximately $120 million to Iran to fully liquidate its financial commitment for developing Chabahar port, a key gateway to landlocked Afghanistan, The Economic Times said on Friday. A government source stated that India now has “no liability” in its commitment and that Iran is free to use the funds independently. In October last year, India was granted a six-month exemption from US sanctions on the port. New Delhi and Tehran signed a contract to develop and equip the long-stalled Chabahar project in 2024, giving India 10 years of access. Following the reimposition of sanctions, the state-owned entity India Ports Global Ltd (IPGL) effectively exited the project. Government directors resigned en masse, and its website was taken down to “insulate everybody associated with the port from potential sanctions”. A government source concluded, “India has no choice but to exit the Chabahar port”. The collapse followed US President Donald Trump’s Janua...