COLOMBO: The Sri Lankan cabinet has decided to review the US $ 450 million Tata housing project here with a view to giving the displaced low income group families better compensation.
Cabinet spokesman, Rajitha Senaratne said here on thursday, that the government will renegotiate the deal with the developers "One Colombo Pvt.Ltd.", a Tata company registered in Sri Lanka.
Renegotiation is necessitated by the government's desire to pay more compensation to the displaced people he said. Government will have to shell out more money for this than envisaged earlier when the deal with the Tata's was struck,Senaratne explained.
The project had involved the displacement of 65,000 people living in about 8 acres of land in congested Central Colombo.The Tatas had underaten to construct 456 housing units housed in high rise buildings.The Tatas undertook to bring in the money and recover it by developing a modern commercial complex in the same area.
The displacement of people became a major human rights issue which tarnished the image of the earlier Rajapaksa government among Muslims as many of the displaced belonged to this category.
The review of the Tata project is part of the Sirisena government's plan to review all major projects undertaken by the Rajapaksa government.