Union Cabinet revises cost estimates of Salma Dam Project in Afghanistan

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the reconstruction and completion of Salma Dam Project in Afghanistan at the Revised Cost Estimates (RCE) of Rs.1775.69 crore.

The project is scheduled to be completed by June, 2016. M/s. WAPCOS, a central Public Sector Unit under the Ministry of Water Resources, is executing the project.

The availability of power and water through the project upon its successful completion will lead to the overall economic development of the western region of Afghanistan and generate goodwill for India in Afghanistan. The completion of this project will address the energy requirements and irrigation needs of western Afghanistan.

The foreign exchange rate variation between Indian rupee and US dollar, increase in consultancy charges due to extended period of project completion, escalation, training of Afghan personnel etc. have necessitated revision in the project cost.

Background:

Situated on the upper reaches of Hari Rud River in Herat province, Salma Dam project involves construction of a 107.5 meter high earth and rock – fill dam and a 42 MW power House with three units of 14 MW each. It also has a provision for releasing water for irrigation of 75,000 hectares of land. The availability of power and water through the project, upon its successful completion, is expected to contribute to the overall economic development of the western region of Afghanistan and generate goodwill for India in Afghanistan.

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