G.O. (D) No.328, Project Development Grant Fund Technical Assistance Grant, 2022
The Municipal Administration and Water Supply (MA2) Department issued G.O. (D) No.328 dated 13 September 2022, sanctioning the release of Rs.10 crore as a technical assistance grant to the Project Development Grant Fund under the Asian Development Bank assisted Tamil Nadu Urban Flagship Investment Program, Tranche-1. It is a government funding and accounting approval for consultancy work and does not set out any change to land ownership, property rights or land use.
What the government approved
G.O. (D) No.328 dated 13 September 2022 of the Municipal Administration and Water Supply (MA2) Department sanctions Rs.10 crore as a technical assistance grant to the Project Development Grant Fund. The funding is part of the Asian Development Bank assisted Tamil Nadu Urban Flagship Investment Program, Tranche-1.
Tamil Nadu Urban Infrastructure Financial Services Limited had requested Rs.29 crore for ongoing consultancy assignments from the Budget Estimate 2022-2023. After examining that request, the Government approved Rs.10 crore.
Program and funding background
The Tamil Nadu Urban Flagship Investment Program, Tranche-1 had previously received administrative sanction with a total outlay of about Rs.3,070.33 crore. Asian Development Bank assistance was stated as about Rs.1,099.53 crore, comprising a loan and grant.
The source records an allocation of Rs.78.90 crore to the Project Development Grant Fund, consisting of:
- Rs.71.83 crore for consultancy assignments.
- Rs.7.07 crore for incremental administrative costs.
Tamil Nadu Urban Infrastructure Financial Services Limited reported that the Government had already released Rs.29.50 crore for consultancy assignments. Of that amount, Rs.25.04 crore had been disbursed, leaving Rs.4.46 crore available.
How the Rs.10 crore must be handled
The Municipal Administration and Water Supply (MA2) Department directs that the sanctioned amount:
- Must not be paid in cash.
- Must be credited to the specified non-interest bearing deposit account for the Grant Fund.
- Must be debited under the identified Urban Development budget head for technical assistance to the Project Development Grant Fund.
- Must be transferred through an adjustment entry prepared and submitted in the Integrated Financial and Human Resources Management System by the Director of Municipal Administration.
The Finance Department concurred with the release before the government order was issued.
Relevance to property owners and buyers
G.O. (D) No.328 dated 13 September 2022 concerns government financing for technical assistance and consultancy assignments under an urban investment program. It contains no provision changing land classification, ownership, registration, planning permission, property tax or development rights. Its direct administrative effect is on the Project Development Grant Fund, the Director of Municipal Administration and Tamil Nadu Urban Infrastructure Financial Services Limited.
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Common questions
Does G.O. (D) No.328 change the ownership or classification of my land?
No such change is set out. The government order sanctions a technical assistance grant for consultancy assignments under an urban investment program.
How much funding was approved under this government order?
The Municipal Administration and Water Supply (MA2) Department sanctioned Rs.10 crore, although Tamil Nadu Urban Infrastructure Financial Services Limited had requested Rs.29 crore.
Can the sanctioned Rs.10 crore be paid in cash?
No. The government order requires the amount to be credited to the specified non-interest bearing deposit account for the Grant Fund.
Who is responsible for processing the transfer?
The Director of Municipal Administration is authorised to prepare and submit an adjustment entry in the Integrated Financial and Human Resources Management System.
