G.O.(Ms)No.171, State Urban Infrastructure Development Fund Loan for Kosasthalaiyar Storm Water Drains
The Municipal Administration and Water Supply (MA2) Department issued G.O.(Ms)No.171 dated 07.12.2022, permitting a loan of Rs.280 crore from the State Urban Infrastructure Development Fund to the Greater Chennai Corporation. The loan supports the Corporation's share for the financial year 2022-23 in the integrated storm water drain project for the Kosasthalaiyar basin.
What the document does
The Municipal Administration and Water Supply (MA2) Department issued G.O.(Ms)No.171 dated 07.12.2022 to approve project financing for the Greater Chennai Corporation. It permits a Rs.280 crore loan from the State Urban Infrastructure Development Fund for integrated storm water drains in the Kosasthalaiyar basin.
The loan forms part of the Greater Chennai Corporation's contribution to a larger project with an estimated cost of Rs.3,220 crore. The document deals with public infrastructure funding. It does not change land ownership, land classification or development rights.
Project funding
The integrated storm water drain project has the following funding pattern:
- Rs.1,789 crore as the Asian Development Bank's loan share, stated as 251 million USD.
- Rs.681 crore from the Chennai Mega City Development Mission, Capital Grant Fund and other schemes.
- Rs.750 crore from the Greater Chennai Corporation's own funds.
- Total estimated project cost of Rs.3,220 crore.
The Greater Chennai Corporation's Rs.750 crore share is planned over three years. The stated allocation is Rs.280 crore in the financial year 2022-23, Rs.280 crore in 2023-24 and Rs.190 crore in 2024-25.
Loan terms and approval
G.O.(Ms)No.171 permits the first-year loan on these terms:
- Loan amount of Rs.280 crore.
- Funding from the State Urban Infrastructure Development Fund.
- Interest at 4% per annum.
- Repayment period of 10 years.
- Compliance with the conditions in the appraisal report and those approved by the State Level Sanctioning Committee at its second meeting held on 13.10.2022.
The Finance Department gave its concurrence dated 06.12.2022.
Who may be affected
The direct institutional parties are the Greater Chennai Corporation and the Tamil Nadu Urban Finance and Infrastructure Development Corporation Limited. Property buyers and owners are not given any payment obligation, land restriction or individual approval requirement in G.O.(Ms)No.171. The practical relevance for residents and property owners is that the approved financing supports construction of integrated storm water drains in the Kosasthalaiyar basin within the Greater Chennai Corporation.
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Common questions
Does G.O.(Ms)No.171 change the ownership or classification of my land?
No land ownership or classification change is stated. G.O.(Ms)No.171 concerns a loan for the Greater Chennai Corporation's storm water drain project.
How much funding was approved for the Kosasthalaiyar storm water drain project?
The approved loan is Rs.280 crore for the Greater Chennai Corporation's share in the financial year 2022-23. The total estimated project cost is Rs.3,220 crore.
What are the repayment terms for the Rs.280 crore loan?
The loan carries interest at 4% per annum and has a repayment period of 10 years. It is also subject to the appraisal report and conditions approved by the State Level Sanctioning Committee.
Who receives the loan approved under G.O.(Ms)No.171?
The loan is provided from the State Urban Infrastructure Development Fund towards the Greater Chennai Corporation's share of the integrated storm water drain project.
