Indian housing project next phase begins

The Indian Government Union Cabinet approved the reconstruction and repair of 49,000 houses for Internally Displaced Persons (IDPs) in Northern and Eastern Provinces and for Indian Origin Tamils (IOTs) in Sri Lanka under grant assistance from the Indian government on December 1.

The project will be under full grant assistance of the Indian government with a total outlay of US $ 260 million. The project will primarily be implemented under the owner-driven model where beneficiaries will undertake the reconstruction of their houses with technical assistance and support provided to them.

Funds will be released directly by the Indian High Commission into their bank accounts based on certification of progress of work.

While bulk of the housing units will be implemented under this model, houses for people from vulnerable sections, who are unable to build their own houses, like households headed by single woman, disabled, elderly people etc., will be built by construction agencies.

The project will include three components: they are reconstruction of 38,000 houses under the owner-driven model for IDPs; repairs of 5,000 houses under the owner-driven model for IDPs; and construction of 6,000 houses by agencies for vulnerable sections of IDPs in the Northern and Eastern provinces and for IOTs in the Central and Uva Provinces.

The project will be carried out in consultation and cooperation of the Sri Lanka government. The selection of beneficiaries for the project will be done through a transparent, norm-based process and based on clearly defined and objective criteria. Discussions on various aspects have been held with the Sri Lankan government. A Memorandum of Understanding to ensure smooth execution of the project is expected to be signed shortly.

The construction of 49,000 houses for resettlement and rehabilitation of IDPs is part of the overall commitment to build 50,000 houses announced by Indian Prime Minister Dr. Manmohan Singh during the state visit of the President Mahinda Rajapaksa in June 2010. This commitment also formed a part of the joint declaration issued in New Delhi on June 9, 2010.

A pilot project for the construction of 1,000 houses in the five districts of Northern Province was launched with the signing of the agreement in this regard during the visit of Indian External Affairs Minister S.M. Krishna to Sri Lanka in November 2010. The project is underway and handing over of houses to beneficiaries will commence soon. The pilot project, which has an outlay of US $ 10.1 million is also under grant assistance of the Indian government.