The Economic Times

Sunday, March 30, 2003

India to help rebuild Afghanistan's phone network

REUTERS

NEW DELHI: India will help war-battered Afghanistan rebuild its basic
telecoms infrastructure as part of a $100 million grant to the landlocked
nation, Communications Minister Arun Shourie said on Friday.

Afghan Wireless Communications Company is the only firm in the country --
which has been embroiled in conflict for more than two decades -- that
provides mobile connectivity to some 17,000 people in four cities. Its
fixed-line network is in a shambles.

"They've asked for line exchanges, satellite communications equipment,
training of their manpower and modernisation of postal services," Shourie
told reporters after meeting Afghan Communications Minister Mohammad Masoom
Stanekzai.

"They've asked for help in setting up that infrastructure," he said. "These
will form a part of the $100 million grant."

Shourie said officials from the telecoms department would be deputed to work
out the financing costs for the equipment.

Afghanistan is trying to raise funds to reconstruct its telecoms network by
attracting private investment, taking loans from organisations such as the
World Bank and through suppliers' credit.

India is keen to strengthen its ties with Afghanistan and has a bilateral
preferential trade agreement with Kabul.

Under the deal, New Delhi will give a 50 to 100 per cent tariff concession
to 38 Afghan items, while Kabul will extend duty-free access to eight Indian
items.

India is also helping develop Afghanistan's police force, army, road
transport and aviation sector.

New Delhi, along with Iran and Russia, supported the Northern Alliance
opposition group during its war with the Pakistani-backed Taliban, and has
been pushing political and commercial ties with the new regime in Kabul
since it came to power in late 2001.

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