The cabinet in May approved a proposal by minister D.M. Swaminathan to award the task to China Railway Engineering Company and its local agent Yapka Construction.
However, India, and the TNA, are opposing the construction of the houses by China, cabinet spokesman Rajitha Senaratne told the media two days ago.
Swaminathan had not wanted to grant the contract to India, saying that that would double the construction cost.
President was plainly told
The related discussion in the cabinet had been a heated one, with Mano Ganeshan criticizing Swaminathan’s failure in a three year period to build a single house out of a promised 40,000 houses.
Ganeshan was quoted by social media as saying that he had plainly told the president about the northern people’s justifiable anger over the failure to deliver promises by visiting politicians from the south.
The northern people are angry with the president, prime minister and the government, he has said.
A diplomatic issue
Senaratne said further that the PM would raise this diplomatic issue with the two parties involved and inform the cabinet a solution at its next meeting.
A previous plan by India’s ArcelorMittal to build 65,000 pre-fabricated houses was suspended following public protests.