New Delhi, Aug 13 - One of India's flagship projects in Afghanistan, the Salma Dam, has turned into a security nightmare, with its neighbourhood being the battleground for two rival warlords, one of whom is in charge of its security.

India is involved in $750 million worth of reconstruction programmes in Afghanistan and one of the biggest is for building the 107-metre high Salma Dam on the Hira Rud river in northwest Afghanistan's Herat province at a cost of about $116 million.

The dam construction, assigned to the state-run Water and Power Consultancy Services India Ltd (Wapcos), began in 2004. It was due to be completed in two years but has since been rescheduled at least twice, with the next deadline being December 2010.

While the security of nearly 250 Indian nationals in the remote location has always been a concern, a series of recent incidents led senior officials to shoot off a series of worried letters last month.

U.N. Panjiar, secretary in the water resources ministry, held a review of the Salma Dam on Aug 3 when security apprehensions were discussed.

The latest scare took place July 10 when fighting took place just a few kilometres away in a nearby village and in which about 20 people were killed.

After that incident, there have been urgent letters from the field to the firm's headquarters in Delhi, Indian consulate and Afghan authorities, asserting that workers were living in 'constant fear'.

The missives talk about 'unknown' armed personnel in civilian dress at the construction site, Afghan workers 'disappearing' and some of them taking part in the fighting. They have also reported certain hired trucks going off from the location without permission.

'The workers hear gunshots daily in the nearby area,' an official who has visited the project site told IANS.

In fact, the project contractors had asked that work be temporarily stopped till the security scenario improves. 'But we did not agree to the demobilisation, as this project is very sensitive and central for India's assistance plan,' said a senior Wapcos official.

The Afghanistan general elections Aug 20 led to a reduction in the number of security personnel from the construction site as they were deployed elsewhere.

'There has been a massive movement of security forces in the vicinity as well as lots of low-flying helicopter and plane sorties over the area.