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India and Afghanistan won't pursue mining, steel project

pakistani342

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Masterstroke on India's part? -- tug along the Afghans at no cost?

Article here excerpts below:

India and Afghanistan have called off all talks on a proposed $11-billion iron-ore mining and steel mill project by a consortium of Indian metal companies. According to a senior government official, the Indian government, which had been supporting the Indian consortium through bilateral talks with the Afghan government, had decided that it would be futile to hold any further negotiations to advance the project in view of spread of Taliban control close to the proposed iron-ore reserves and steel mill site at Hajigak. He said that the Afghan government appreciated the issues raised by the Indian government in deciding not to negotiate further and even acknowledge that the Taliban forces were recipient of revenues from small unorganised mining in the region and the security concerns of prospective investors.

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At the same time, the tripartite transit agreement between India, Afghanistan and Iran had also failed to fructify, which would have offered transportation and logistical facilities to the project through the Iranian port of Chabahar.
 
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