Indian High Commissioner Ashok K Kantha visited Mannar to hand over the grant.
The High Commissioner Kantha said India's assistance focused on emergency relief assistance towards the end of the armed conflict and in its immediate aftermath.
India also gradually focused on the resettlement of the Internally Displaced Persons (IDPs).
The subsequent requirements of re-construction are being addressed through the flagship Indian housing project, the Northern Railway reconstruction project and other infrastructural development initiatives.
He underlined that the Northern Railway reconstruction project was progressing smoothly and would be completed ahead of schedule by December 2013.
The Indian envoy expressed hope that the ferry service between Talaimannar and Rameswaram would be resumed soon and pointed out that Government of India was in favour of early resumption of the ferry service and is prepared to work with the government of Sri Lanka in this regard.
The flagship Indian housing project in the north, the pilot phase of construction of 1000 houses has been successfully completed and the second phase based on owner driven model was also launched.