KfW assisted Sustainable Municipal Infrastructure Financing in Tamil Nadu, Phase II, Part 2 Program, Release of grant of Rs.2.50 crore to Project Development Grant Fund towards Technical Assistance
The Municipal Administration & Water Supply (MA2) Department issued G.O. (D) No. 421 on 14 November 2022, sanctioning Rs.2.50 crore to the Project Development Grant Fund for technical assistance under the KfW German Development Bank assisted Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 Program. The document is a government funding and accounting direction and does not contain provisions changing land ownership, land use or property rights.
What the document does
The Municipal Administration & Water Supply (MA2) Department issued G.O. (D) No. 421 on 14 November 2022. It sanctions Rs.2,50,00,000 to the Project Development Grant Fund for technical assistance connected with ongoing consultancy assignments under the KfW German Development Bank assisted Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 Program, known as SMIF-TN-II-2.
The funding supports a program under which urban infrastructure projects are taken up to improve living conditions in urban areas.
Funding background
The Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 Program previously received revised administrative sanction at a total cost of Euro 107.75 million, approximately Rs.877.39 crore. This included supplemental technical assistance funding.
The document records that:
- The technical assistance grant available under SMIF-TN-II-2 is Euro 2.75 million, equivalent to about Rs.22.39 crore.
- Rs.7.00 crore had already been withdrawn from the Government.
- Rs.9.67 crore had been committed to consultancy assignments.
- Rs.7.06 crore had already been disbursed, comprising Rs.7.00 crore released by the Government and Rs.0.06 crore from the Project Development Grant Fund's own funds.
Transfer and accounting arrangements
The Municipal Administration & Water Supply (MA2) Department approved the request from the Chairman and Managing Director of Tamil Nadu Urban Infrastructure Financial Services Limited for a further Rs.2.50 crore.
Key directions are:
- The money is to be transferred to the Project Development Grant Fund account maintained in the name of “Grant Fund”.
- The grant is intended to meet expenditure on ongoing consultancy assignments under SMIF-TN-II-2.
- The sanctioned amount is not to be paid in cash. It must be transferred through the specified government accounting heads by contra credit.
- The Director of Municipal Administration is authorised to prepare and submit the adjustment entry through the Integrated Financial and Human Resources Management System.
- The Finance Department concurred with the sanction.
Who is affected
G.O. (D) No. 421 directly concerns the Director of Municipal Administration, Tamil Nadu Urban Infrastructure Financial Services Limited, government accounting authorities and consultancy work funded through SMIF-TN-II-2. Property buyers and landowners are not given any new duty, right, fee or approval requirement by the document.
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Common questions
Does G.O. (D) No. 421 change land ownership or land use rules?
No. The document sanctions and transfers technical assistance funding for urban infrastructure consultancy assignments. It contains no provision changing land ownership, land use or property rights.
How much money was sanctioned?
The Municipal Administration & Water Supply (MA2) Department sanctioned Rs.2,50,00,000 to the Project Development Grant Fund.
What will the Rs.2.50 crore be used for?
It will meet expenditure for various ongoing consultancy assignments under the Sustainable Municipal Infrastructure Financing in Tamil Nadu Phase II Part 2 Program.
Will the sanctioned amount be paid in cash?
No. The document directs that the amount must be transferred by contra credit through the specified government accounting heads.
