India's Ministry of Steel has asked a consortium of local steel companies to stay engaged with a $10 billion steel project in
Afghanistan despite Indian companies' reservations over security issues in the region, an official at the ministry said on Thursday, April 30, following the concerns expressed by Steel Authority of
India Limited (SAIL), the consortium leader, over security issues in
Afghanistan, citing attacks on Indian interests in the country over the past one year.
Afghanistan Iron and Steel Company (AFISCO), the consortium which planned the $10 billion iron ore mining and steel mill project in the province of Hajigak, is crucial for
India's geopolitical interests in
Afghanistan, and, in the interest of the country's diplomacy, the Indian government has asked the consortium not to take any decision as regards announcement of the scrapping of the project, the official added.
Rashtriya Ispat Nigam Limited (RINL), one of the members of the AFISCO consortium, with an equity stake of 18 percent, has in the meantime communicated to the steel ministry its intention to reduce its stake to a bare minimum since the southern
India-based steel mill does not want to remain invested in an "uncertain" project, the official said.