Indian housing project in Lanka in limbo: report

| | Updated on: Apr 24, 2011
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Indian assistance to build 50,000 homes in Sri Lanka’s north for the internally displaced people is being delayed due to the dispute over the bids for construction, a media report said today.

The Sunday Times paper quoted Sri Lankan Minister, Mr Douglas Devananda as saying that the delay was caused by the dispute over the bids for construction.

Mr Devananda said the two Indian companies who had bid for the project at Rs 5,00,000 per house are now demanding Rs 7,00,000.

However, an Indian High Commission spokesman here said that there was no delay and the work was progressing.

The relevant tender contracts have been awarded and they were in the process of mobilising local resources.

The Indian pledge to construct houses in the north was made by the Prime Minister, Mr Manmohan Singh when he met the Sri Lankan President, Mr Mahinda Rajapaksa in New Delhi last year.

The Indian External Affairs Minister, Mr S M Krishna laid the foundation stone for the project in Jaffna during his visit last November.

Published on April 24, 2011

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