NEW DELHI, NOV 4 (IslamOnline) - Prime Minister Atal Bihari Vajpayee, Monday, November 4, announced a major financial concession for ongoing reconstruction efforts in war-ravaged Afghanistan and assured continuing support in this task.

Vajpayee, who was briefed by the visiting Afghan Foreign Minister, Abdullah Abdullah, on progress in the economic reconstruction programs in his country, approved the remaining 68.5 million dollars of the 100 million dollar line of credit announced in February this year as a "grant."

During the half-an-hour meeting, the two leaders reviewed the current state of Indo-Afghan bilateral relations. The Afghan minister offered an assessment of the general situation in that country, particularly relating to political security and economy, an external affairs ministry spokesman said here today.

According to media reports, the issue of "Islamic militants" in the region was also discussed. Abdullah is currently on a four-day official visit to India.

Emerging from an hour-long meeting with Abdullah Abdullah, External Affairs Minister Yashwant Sinha said the two sides discussed India's role in the reconstruction and development of Afghanistan.

He said they reviewed the progress of several projects started in that country after the interim administration, headed by Hamid Karzai, assumed office in December last year.

"Clearly, there was an identity of approach almost on all the issues," Sinha said, adding that issues of regional and global concern also figured during the discussions.

India's National Security Advisor Brajesh Mishra, Foreign Secretary Kanwal Sibal and India's Ambassador to Afghanistan Vivek Katju were also present during the meeting between the two foreign ministers.

Indian foreign ministry spokesman, Navtej Sarna, said the initial meeting reviewed bilateral relations, economy and political security between the two countries.

He added that the Indian prime minister had offered almost 70 percent of the total reconstruction loan to Afghanistan as a gift.

India has offered financial assistance to Afghanistan in developing infrastructure, health facilities, educational institutions, information technology, science and technology and other diversified areas.

Besides a 100 million dollar US aid, India has also offered trucks, jeeps and ambulance vehicles to help Afghanistan rebuild its army.

India has been a close ally of the Northern Alliance long before it came to power in Kabul. The two countries share intense hatred for Pakistan.

Meanwhile, India has decided to set up consulates in several Afghan cities. In an effort to further strengthen bilateral ties with Afghanistan, federal External Affairs Minister Yashwant Sinha said recently. India proposed to set up its consulates in various cities of the war-torn nation.

While a consulate general had already been set up at Mazar-e-Sharif, New Delhi is planning to set up consulates in Herat, Kandahar and Jalalabad, Sinha.

Indian media said last August that India has transferred to Kabul the military hospital which functioned at Farkhor in Tajikistan, across the Afghan borders, for many years to treat wounded soldiers of Afghanistan's Northern Alliance. That hospital, where 25 Indian doctors and male nurses worked, has shifted to Kabul, where the Indian army has set up a 250-bed hospital exclusively to treat Afghan soldiers.

Soon after the collapse of the Taliban regime, New Delhi sent to Kabul several medical teams and about 12 tones of emergency medical supplies.