The Indian government has built 10,250 houses last year for internally displaced people in Sri Lanka's northern and eastern provinces.
"Another 27,750 houses will be constructed under the same scheme. The funds are being released directly to the beneficiaries," Finance Minister P Chidambaram said quoting a communication from the Ministry of External Affairs.
He further said that as part of the rehabilitation scheme, 5,000 houses in Northern part of Sri Lanka are being repaired with the assistance provided by India.
The construction of houses for resettling and rehabilitating people displaced during the ethnic war in Sri Lanka is part of India's overall commitment to build 50,000 houses, which was announced by Prime Minister Manmohan Singh in June 2010.
The project is being implemented with full grant assistance from India, with the total outlay of Rs 1,372 crore making it one of the largest grant assistance projects undertaken by the government in any country, the Indian High Commission had said earlier.
