The Union Cabinet, chaired by Prime Minister Manmohan Singh, gave its nod to the revised cost estimates of Rs 1457.56 crore for reconstruction and completion of the project by Water and Power Consultancy India Ltd (WAPCOS), a PSU under the Water Resources Ministry.
The project over river Hira in Herat Province envisages irrigation facilities as well as power generation.
The revised estimates have been made towards civil, hydro-mechanical, electro-mechanical and other components of the 3x14 MW-capacity dam.
Briefing reporters here after the Cabinet meeting, Finance Minister P Chidambaram said the dam project will be completed two years from the date of approval of revised cost estimates, that is by December 2014 or January 2015.
Salma Dam was originally constructed in 1976, but was damaged during the civil war in Afghanistan. Its reconstruction was initiated by WAPCOS in 1988.
The expenditure on the project will be met from the non-plan head of 'Aid to Afghanistan' budget of the Ministry of External Affairs.
The Cabinet had approved the proposal in June 2010 for the revised cost estimates of Rs 854.86 crore upto December 2010. The project has registered physical progress of 60 per cent.
The availability of power and water through the project will lead to overall economic development of Afghanistan's western region and address the issues of energy requirement and irrigation needs in the region.
