Tamil Nadu Urban Development Fund, World Bank assisted Tamil Nadu Sustainable Urban Development Project, Release of loan of Rs.50.00 crore, Orders Issued
The Municipal Administration and Water Supply Department issued Government Order G.O.(Ms) No.167, dated 25 November 2022, sanctioning a loan of Rs.50 crore to the Tamil Nadu Urban Development Fund for urban infrastructure sub-projects under the World Bank assisted Tamil Nadu Sustainable Urban Development Project. It is a government funding and accounting order and does not itself change land ownership, land classification or property rights.
What the document does
The Municipal Administration and Water Supply Department, through Government Order G.O.(Ms) No.167, dated 25 November 2022, authorises the release of Rs.50 crore as a loan to the Tamil Nadu Urban Development Fund. The money is intended for loans to urban local bodies implementing sub-projects under the World Bank assisted Tamil Nadu Sustainable Urban Development Project.
The annexure records that the sanction is valid up to 31 March 2023 and that the loan is for execution of the Tamil Nadu Sustainable Urban Development Project.
Project funding position
The Tamil Nadu Sustainable Urban Development Project originally had a total outlay equivalent to about Rs.3,831 crore. Following restructuring and exchange rate variation, its revised total outlay was about Rs.4,104.86 crore, including World Bank assistance equivalent to about Rs.2,770.39 crore.
Key funding details recorded are:
- Rs.1,397.80 crore was allocated to the Tamil Nadu Urban Development Fund for sub-loans.
- The full allocation was committed to 31 sub-projects.
- Government release orders had already been issued for Rs.1,292 crore.
- Rs.1,241.78 crore had been disbursed to urban local bodies.
- The Budget Estimate 2022-23 provided Rs.105.80 crore as a loan to the Tamil Nadu Urban Development Fund.
Projects covered
The listed sub-projects include storm water drains, roads, street lights, water supply improvements, lake restoration and a treatment plant. Participating bodies include the Greater Chennai Corporation, Tambaram Corporation, Coimbatore Corporation, Madurai Corporation, Nagercoil Corporation, Cuddalore Corporation and several municipalities.
The largest listed loan sanction is Rs.770.74 crore for integrated storm water drains in the Adyar and Cooum basins under the Greater Chennai Corporation.
Administration and recovery
The Rs.50 crore loan must be credited by adjustment to the Public Deposit Account of the Tamil Nadu Urban Development Fund and not paid in cash. The interest rate for this portion of the loan is to be fixed separately by the Government.
The Director of Municipal Administration must process the adjustment entry, report the loan drawal date and follow the prescribed procedures for monitoring, accounting and final recovery. For property owners and buyers, the document indicates public infrastructure financing in listed urban areas, but contains no provision transferring land or altering an individual property's legal status.
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Common questions
Does G.O.(Ms) No.167 change my land title or land classification?
No such change is stated. Government Order G.O.(Ms) No.167 sanctions a Rs.50 crore loan for urban infrastructure sub-projects and contains no provision transferring land or changing land classification.
Which kinds of urban works receive funding under this document?
The listed works include storm water drains, roads, street lights, water supply improvements, lake restoration and a treatment plant.
Is the Rs.50 crore paid directly to urban local bodies?
The loan is sanctioned to the Tamil Nadu Urban Development Fund and credited by adjustment to its Public Deposit Account. The fund provides sub-loans to urban local bodies for projects under implementation.
Does the document specify the interest rate on the Rs.50 crore loan?
No. The Municipal Administration and Water Supply Department states that the Government will issue separate orders fixing the interest rate for this portion of the loan.
