According to Indian sources, the authorities of the country have frozen their four million kroner guarantee for the project, as a protest against the Swedish reaction to the nuclear bomb tests. Sweden is, both through development aid and business, much more involved in India than Norway is. Because of this, the Swedish sanctions are more effective. However, it should be added that even in total, the Nordic sanctions against India are small on an Indian scale. For example, the Norwegian development aid to the country is reduced by only 12 million kroners this year.
Still, from Indian quarters it is expected that neither the sanctions nor the Indian counter measures will be long-lasting. Indian authorities have apparently decided to commission the project in Kashmir to Skanska/NCC/Norconsult, while the highest priority of the Nordic politicians is to appease the public opinion at home, which is scared by the nuclear rearmament in South Asia. This implies that not even atom bombs can save the mountain people in the Gurez valley from what they themselves see as a final extermination of their historic culture.
Norwatch Newsletter 16/98