Recent developments disappointing - Tata Housing

Tata Housing expressed disappointment on press reports that have appeared over the past two weeks quoting some Government authorities regarding the Government’s decision to review the project based on allegations that are not factual.

Such action by the Government discredits the authorities in Sri Lanka which have engaged with Tata Housing over the past three and half years and have granted multiple approvals for the project based on merit.

Besides, such arbitrary action will also adversely impact confidence of overseas companies to make future investments in Sri Lanka.

Tata Housing last week provided factual details of the project to refute the allegations in various media reports over the past two weeks quoting various Government authorities and reiterated its commitment to the Slave Island project. One-Colombo Project (Pvt) Ltd, a subsidiary of Tata Housing Development Company Limited, has partnered with the Urban Development Authority (UDA) to participate in the vision of the Sri Lankan Government to improve the standards of living for inhabitants of under-served areas in Colombo and provide better infrastructure to the city.

Under the partnership, One-Colombo has been entrusted with the re-development of eight acres of land located in Slave Island, Colombo.

The company is developing around three acres of land for rehabilitation of the inhabitants in lieu of which, around four acres of land, net of areas for roads and public infrastructure, has been granted for a mixed development project to One-Colombo.

The whole process of land acquisition including negotiating with the inhabitants, payment of rental and compensation, signing of agreements and demolition of earlier buildings was handled solely by the UDA.

In accordance with the terms of the contractual understanding with the UDA, One-Colombo has reimbursed the rental and compensation payment to the UDA and given guarantees to ensure completion of the project.

Highlighting the factual position on the matter, a company spokesperson said that the project has been identified as a Strategic Development Project under the agreement with Board of Investments wherein it has made a commitment to invest US$ 429.5 million over a period of eight to ten years with a foreign direct investment of US$ 130 million.

Tata Housing has already infused significant capital in the project to launch construction work. He further added, “Tata Housing is committed to its flagship project in Sri Lanka that promises to be a model project to improve the high density underserved areas of the city, provide inhabitants with a better lifestyle and transform the urban areas."

"In line with the Tata group ethos, Tata Housing abides by a strict code of conduct and always acts in accordance with the laws and procedures laid out by the country it operates in. As a responsible company, we are keen to cooperate with the Government and the UDA to ensure the long-term success of the project.”