Wednesday, May 18 2005 15:21 Hrs (IST) - World Time -

New Delhi: Describing the process of stabilization in Afghanistan as "still fragile", India has said that Taliban, Al Qaeda and Hizb-e-Islami elements, "with support from outside", continued to pose a threat to peace and security in that country.

"This has been compounded by the continued increase in the cultivation, production and trafficking of narcotic drugs that could undermine the political and economic reconstruction of Afghanistan and has potentially dangerous repercussions for the region and beyond," the External Affairs Ministry said in it annual report for 2004-05.

It noted that bilateral relations between India and Afghanistan have attained a new level of intensity and cooperation.

India's present commitments towards projects for reconstruction of Afghanistan add upto $ 400 million over the period 2002-08.

The report said India has always accorded priority to its relations with neighbours and continued to provide to them development assistance to a large number of projects that showcased its expertise in information technology, human resource development, infrastructure engineering, railways and other areas.

It said negotiations were presently underway to discuss the terms and conditions and modalities of the proposed $ 150 million EXIM bank credit line to Bangladesh for funding infrastructure-related projects in the rail and road sectors.