The Afghanistan government today hinted that it is unlikely to provide any financial assistance to SAIL-led consortium which plans to invest a whopping $10.7 billion in the war-torn country to set up a seven million tonne steel plant and 800 MW power project, among others.

"When they submitted their technical and financial bid, the consortium had clearly indicated their capabilities to fund the project. Contracts have been awarded after reviewing these bids," Afghan Mines Minister Wahidullah Shahrani said here when asked if the local government would provide funds for the project.

In November last, a consortium of Indian steel makers, led by state-run SAIL, had bagged the mining rights for three iron ore mines at Hajigak in Afghanistan.

Following this, SAIL Chairman CS Verma had said given the huge need of funds for the project and since Afghanistan falls on the negative list for the Indian financial institutions, the consortium might seek funds from local government to finance the project.

Asked whether the government is willing to provide funds if the Indian consortium requires the same, Shahrani evaded any direct answer, saying, "They were very confident. They had mentioned sources from where they are going to get the funds".

The seven-member SAIL-led consortium has plans to invest $10.7 billion over a period of 7-10 years to set up steel and power plants and create infrastructure among others.

The three mines, which the Indian consortium got, have an estimated 1.28 billion tonnes of high-grade magnetite iron ore reserve. The lease is initially for 30 years, which could be expanded to another 15 years.

Shahrani, however, said that the Afghan government would ensure security and raw material required for the project and at the same time would not bar the consortium from exporting the value-added raw material and finished products out of the country.

He said a detailed negotiation on the terms of the venture would start on January 21 between the Afghanistan government and the consortium and by March, everything would be finalised.

"First production from the project is likely by 2016," he said.

Apart from SAIL, NMDC, RINL, JSPL, JSW Steel, JSW Ispat and Monnet Ispat & Energy are the members of the consortium.