G.O.(Ms)No.32, Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2, 2015
The Government of Tamil Nadu, Municipal Administration and Water Supply (MA2) Department issued Government Order (Ms) No. 32, dated 17 February 2015, granting administrative sanction for the KfW assisted Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 programme. It approves assistance totalling Euro 105.75 million, approximately Rs.861.10 crore, authorises committees to approve urban infrastructure sub-projects and adopts guidelines for managing the associated grant funds.
Purpose and scope
Government Order (Ms) No. 32, dated 17 February 2015, issued by the Government of Tamil Nadu, Municipal Administration and Water Supply (MA2) Department, approves the implementation of the KfW assisted Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 programme. The programme is intended to improve living conditions in urban areas through infrastructure projects.
The approved assistance totals Euro 105.75 million, stated as approximately Rs.861.10 crore. Agreements involving KfW, the Government of Tamil Nadu and the Tamil Nadu Urban Development Fund were executed on 18 June 2014.
Who is affected
Government Order (Ms) No. 32 primarily affects Urban Local Bodies, statutory boards, the Tamil Nadu Urban Development Fund, the Water and Sanitation Pooled Fund and the Tamil Nadu Urban Infrastructure Financial Services Limited. Urban Local Bodies and statutory boards may receive capital grants for qualifying urban infrastructure projects with positive environmental and climate change impacts.
The document concerns programme finance, project selection and administrative approval. It does not set out provisions dealing directly with individual land ownership, title registration or property transfers.
Key financial provisions
The approved assistance is divided as follows:
- Euro 50 million as a loan to the Tamil Nadu Urban Development Fund.
- Euro 50 million as a capital grant to KfW Grant Fund I.
- Euro 5 million as a loan to the Water and Sanitation Pooled Fund.
- Euro 0.75 million as a technical assistance grant or accompanying measures through KfW Grant Fund II.
- The Water and Sanitation Pooled Fund loan carries fixed interest of 0.75% per year.
- A front end fee of 1% applies to the loan released to the Tamil Nadu Urban Development Fund and is payable when the loan is drawn.
- Other repayment, commitment and management terms operate on a back to back basis as decided by the Government.
Approval and fund management
The Empowered Committee for Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 1 is authorised to approve sub-projects, determine financing arrangements and decide capital grant amounts for Phase II Part 2. Following committee approval, the Municipal Administration and Water Supply Department accords administrative sanction.
KfW Grant Fund I remains a Government fund under the control of the Government of Tamil Nadu. Investment interest and other income become part of the fund corpus. The Principal Secretary of the Municipal Administration and Water Supply Department may periodically review its operation using progress reports and site inspections.
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Common questions
Does Government Order (Ms) No. 32 change my land title or registration rights?
The document does not contain provisions changing individual land titles, registration rights or property transfers. It deals with financing and approval of urban infrastructure projects.
Can an Urban Local Body receive a grant under this programme?
Yes. KfW Grant Fund I may provide capital grants to Urban Local Bodies and statutory boards for eligible urban infrastructure projects, including projects with positive environmental and climate change impacts.
Who approves projects under Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2?
The authorised Empowered Committee sanctions sub-projects, finalises financing arrangements and determines capital grants. The Municipal Administration and Water Supply Department then accords administrative sanction based on the committee's approval.
Who controls KfW Grant Fund I?
KfW Grant Fund I is a Government fund fully regulated by the Government of Tamil Nadu. The Government controls its allocations, while investment interest and other income form part of the fund corpus.
