2: India Fully Pays $120 Million Commitment for Chabahar Port

• Financial Milestone: The Government of India has completed the $120 million disbursement for port equipment procurement at Iran\'s Chabahar Port, fulfilling its commitment under the 10-year MoU signed in May 2024. • Sanctions Looming: The payment was accelerated ahead of the April 26, 2026 expiry of the current U.S. sanctions waiver, signaling a \'wait-and-watch\' approach to future operational involvement. • Strategic Bypass: Chabahar serves as India’s gateway to Afghanistan and Central Asia, bypassing Pakistan’s land routes and acting as a counterweight to China’s Gwadar Port in Pakistan.• Budgetary Signal: The Union Budget 2026-27 made no fresh allocation for the project, leading to concerns about India \'scaling back\' operations due to renewed \'maximum pressure\' from the U.S. administration. • Regional Connectivity: The port is a central node of the International North-South Transport Corridor (INSTC), aimed at reducing transit time to Russia and Europe by 40%. Constitutional & Legal Context • Article 73: Extends the executive power of the Union to matters with respect to which Parliament has power to make laws, including international treaties and agreements. • India Ports Global Ltd (IPGL): The state-owned entity (under the Ministry of Ports, Shipping and Waterways) specifically tasked with the development and management of the Shahid Beheshti Terminal at Chabahar. • CAATSA (U.S. Law): Countering America\'s Adversaries Through Sanctions Act; a U.S. federal law that imposes sanctions on Iran, North Korea, and Russia, often complicating India’s strategic projects. Key Definition • Strategic Autonomy: The ability of a state to pursue its national interests and adopt its preferred foreign policy without being constrained by other states. Conclusion While India has fulfilled its financial obligations to maintain credibility with Iran, the future of Chabahar depends on delicate \'sanctions diplomacy\' with Washington to ensure the port remains a viable commercial corridor. UPSC Relevance • GS Paper 2: India and its neighborhood relations; Bilateral agreements involving India and affecting India’s interests. • Prelims: Locations of Chabahar and Gwadar; Nations involved in INSTC; Geography of the Gulf of Oman.