Government Thursday approved revised cost estimates of Rs 800.85 crore for the Salma Dam being built by India in Afghanistan as part of reconstruction of the war-torn country.
The revised estimates approved by the Indian Union Cabinet, marks an increase of Rs 54.01 crore in the cost of the project Stage-I which is to be commissioned next year.
"The successful completion of the project will lead to overall development of Afghanistan's western regions and generate goodwill for India
in Afghanistan," Information and Broadcasting Minister Ambika Soni told reporters after the Cabinet meeting.
"The project will showcase Indian engineering and enhance India's role as a major regional player," she said.
The dam is being constructed since 2004 on river Hari Rud, 162 kms east of Herat, and executed by M/s Water and Power Consultancy Services (India) Limited (WAPCOS) under Aid to Afghanistan.
Approximately 50 per cent of the project work relating to construction of civil work, manufacturing of hydro-mechanical and electro-mechanical work, transmission work and infrastructure work has been completed.
The project will have irrigation potential of 40,000 hectares and stabilising supply of existing 35,000 hectares.
The dam is one of the umpteen developmental projects being undertaken by India as part of its 1.3 billion dollar aid package for reconstruction of Afghanistan.