Ads for prefabricated houses but opposition continues

The Resettlement Ministry has called for applications from the public via newspaper advertisements for its ArcelorMittal prefabricated houses, amidst continued grassroots opposition to the project.

The Kilinochchi District Coordination Committee (DCC) passed a unanimous resolution yesterday stating that no prefabricated houses should be given to the people of the district. Earlier, the Jaffna DCC had approved a similar resolution. More than 100 people also attended a protest this week at which petitions were given to the Kilinochchi Government Agent to be conveyed to the President and Prime Minister.

The advertisement sponsored by the Resettlement Ministry does not offer a choice between steel prefabricated dwellings or brick-and-mortar ones. Instead, it says that Government has sanctioned a first instalment of prefab 10,000 homes for Kilinochchi and calls on those interested in getting one to submit an application to the divisional secretariat with a copy to the Resettlement Ministry.

While the Cabinet did approve the construction of a tranche of ArcelorMittal houses in the Kilinochchi and Mullaitivu Districts, the go-ahead was strictly tied to the condition that there would be demand for these homes among intended beneficiaries. This has led to the Resettlement Ministry seeking public patronage for the project without offering any alternative to the controversial dwellings.

The advertisement says the houses will be built by “the leading company in the world” but avoids naming the firm. It says each home will meet environmental standards, be cooler than outside temperature and have a 30-year warranty with a usability period of 60-70 years. It says solar power, tube well, pantry cupboard with gas, three fans and wiring are part of the package.

The notice also depicts the interior of a fully-furnished model house. However, Resettlement Minister D M Swaminathan said in an interview with the Sunday Times this month that furniture, fittings and WiFi had been removed from the deal. He said this was done to reduce the cost of each house from the original Rs 2.1 million to Rs 1.6 million.

But the new price cited by the Minister may not be accurate, according to authoritative sources. ArcelorMittal brought the cost of each house down from US$ 15,230 to US$ 12,237, excluding taxes and duties. At the prevailing exchange rate, the old price is Rs 2.28 million per house while the new one is Rs 1.83 million, without furniture and fittings. The sources said even floor tiles are now to be excluded.

The Resettlement Ministry is pushing ahead with the project despite the Cabinet Appointed Negotiating Committee (CNAC) calling for it to be cancelled and fresh tenders to be called. An adviser committee appointed by the Prime Minister had also pushed for a re-tender.