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L&T clips Afghan construction plan

Rumi Dutta

Engineering and construction major Larsen & Toubro, which had planned to get involved in the reconstruction activity in Afghanistan, has now decided to stay away from the war-ravaged country.

Senior executives at L&T said: "We are not keen on executing projects in Afghanistan now because there are no banks or financial bodies in place. Keeping in mind the current situation, we are apprehensive about investing in projects in Afghanistan."

The Centre had previously contacted the company and had asked it to elaborate on how it can participate in the reconstruction of the war-torn country. L&T was looking at building schools, hospitals and power plants.

"The interest in Afghanistan was primarily due to the slowdown in the domestic economy which had also curbed the investment opportunities within India. However, we would not like to invest in any project where returns are not ensured," sources said.

Also, while corporate India is willing, the lack of Pakistani co-operation is standing in the way, industry sources said. Further, with no banks operating in Afghanistan, most transactions are being undertaken in cash.

Several other large Indian corporates have made offers to help the war-devastated country. Godrej & Boyce made an offer to supply cupboards for schools and 5,000 frameworks for emergency shelters, Kirloskar for generators, ABB, Mahindra & Mahindra and BSES for construction and power plants.

The Centre has sanctioned $100 million as assistance for reconstructing Afghanistan. A special cell has also been set up in the ministry of external affairs to co-ordinate this effort.

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