NEW DELHI - India has refused to invest more in a trilateral transport infrastructure project with Iran and Afghanistan catering for the transportation of Afghan mineral goods by the Iranian port Chabahar, said local media Sunday.

The Indian Express quoted government sources as saying that India has rejected an Iranian demand to increase investment on the project during a visit by Indian National Security Advisor Ajit Doval to Teheran last week.

New Delhi is worried that situation in Afghanistan is unfavorable for continuing the project after the pullout of U.S.- led NATO troops taking into account a sharp escalation in fighting across Afghanistan, said the report.

India also fears a 10 billion U.S. dollar project being invested by India in an iron-ore and steel project in Hajigak of Afghanistan would be scuttled.

Relations with Kabul has seen renewed strains following a dropping of requests by the Afghan government for Indian arms. India considers this as an apparent effort by Kabul to soothe the feeling of Pakistan, said the newspaper.

In 2003, a trilateral agreement was signed by India, Iran and Afghanistan to build a highway from Chabahar, a port city of Iran, up to Afghanistan border.

India financed 100 million U.S. dollars for the construction of a 200 km road between Delaram to Zaranj in Afghanistan up to the Iranian border by 2008.  (Xinhua)