Official guidance, Tamil Nadu land law
G.O.Ms.No.61, Chennai Metro Rail Project Share Capital Assistance, 2011
The Planning, Development and Special Initiatives (S.I) Department issued G.O.Ms.No.61 on 14 February 2011, sanctioning Rs.350 crores as share capital assistance to Chennai Metro Rail Limited for the Chennai Metro Rail Project during 2010-11. The money is provided from the Infrastructure and Amenities Fund and credited to Chennai Metro Rail Limited's Public Deposit Account rather than paid in cash.
What the government sanctioned
G.O.Ms.No.61, issued by the Planning, Development and Special Initiatives (S.I) Department on 14 February 2011, authorises expenditure of Rs.350 crores as share capital assistance to Chennai Metro Rail Limited. The assistance is for implementing the Chennai Metro Rail Project during 2010-11 and is to be met from the Infrastructure and Amenities Fund.
Chennai Metro Rail Limited had originally requested Rs.600 crores from the budget provision for 2010-11. The request covered immediate project commitments, including mobilisation advances for rolling stock, depot construction and underground construction, as well as payments connected with land acquisition. An earlier government order had sanctioned Rs.250 crores, and Chennai Metro Rail Limited was asked to seek a recommendation for a further Rs.350 crores from the Infrastructure and Amenities Fund.
Reasons for the funding
The Planning, Development and Special Initiatives (S.I) Department records that the Chennai Metro Rail Project had reached a crucial stage and required substantial funding. The stated needs included:
- Ongoing construction work.
- Mobilisation advances to contractors.
- Rolling stock and depot construction.
- Underground construction.
- Costs relating to the acquisition of land.
The approved funding pattern provides for the Government of India to hold 50 per cent of the equity and the State Government to hold the remaining 50 per cent.
How the money is handled
G.O.Ms.No.61 does not provide for a cash payment to Chennai Metro Rail Limited. It directs the sanctioned Rs.350 crores to be credited to the company's Public Deposit Account.
The expenditure is recorded as share capital assistance to Chennai Metro Rail Limited under the capital outlay for urban development. It is met from the Infrastructure and Amenities Fund through the accounting adjustments specified in the document. The Accountant General is requested to make the necessary adjustments at the end of the 2010-11 financial year.
Relevance to property owners and buyers
G.O.Ms.No.61 concerns project financing rather than approval of a particular land acquisition. Although land acquisition costs are listed as one purpose for which Chennai Metro Rail Limited required funds, the document does not identify any property, survey number, owner or acquisition area. It also does not set out compensation terms or change the planning classification of any land.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O.Ms.No.61 acquire any specific property for the Chennai Metro Rail Project?
No specific property is identified. The document says the funding may meet costs relating to land acquisition, but it gives no survey number, owner or acquisition area.
How much funding was sanctioned to Chennai Metro Rail Limited?
The Planning, Development and Special Initiatives (S.I) Department sanctioned Rs.350 crores as share capital assistance for the Chennai Metro Rail Project during 2010-11.
Where does the sanctioned money come from?
The Rs.350 crores is to be met from the Infrastructure and Amenities Fund.
Is the Rs.350 crores paid directly in cash to Chennai Metro Rail Limited?
No. G.O.Ms.No.61 directs that the amount be credited to Chennai Metro Rail Limited's Public Deposit Account rather than paid in cash.
