G.O. Ms.No.16, Chennai Metro Rail Project, Subordinate Debt, 2018
The Planning, Development and Special Initiatives (S.I) Department issued G.O. Ms.No.16 on 29 January 2018, sanctioning Rs.300 crore as subordinate debt to Chennai Metro Rail Limited. The funding, comprising Rs.200 crore for Phase-I and Rs.100 crore for the Phase-I Extension, is for land costs and rehabilitation and resettlement expenses during 2017-18.
What the government approved
The Planning, Development and Special Initiatives (S.I) Department, through G.O. Ms.No.16 dated 29 January 2018, sanctioned expenditure of Rs.300 crore as subordinate debt to Chennai Metro Rail Limited. Of this amount, Rs.200 crore is allocated to Chennai Metro Rail Project Phase-I and Rs.100 crore to the Phase-I Extension.
The money is intended to meet land costs and rehabilitation and resettlement expenses connected with the Chennai Metro Rail Project during 2017-18. The loan terms and conditions are stated to be in an annexure to the Government Order.
Project and funding background
The Chennai Metro Rail Project Phase-I Extension covers the extension of Corridor-1 up to Thiruvottriyur and Wimco Nagar. The estimated completion cost was initially Rs.3,001 crore and was subsequently updated to Rs.3,770 crore, with approval from the Ministry of Urban Development, Government of India.
The revised project completion cost for Phase-I was approved at Rs.19,058 crore. From Rs.3,966 crore earmarked for subordinate debt, the State Government had already released Rs.2,042.22 crore to Chennai Metro Rail Limited.
A further Rs.200 crore had previously been released from the Rs.500 crore provision in the 2017-18 Budget Estimates. Chennai Metro Rail Limited then requested release of the remaining Rs.300 crore to meet commitments relating to ongoing Phase-I and Phase-I Extension construction works.
How the money is released
G.O. Ms.No.16 does not provide for the sanctioned Rs.300 crore to be paid in cash. The amount must be credited to the Public Deposit Account of Chennai Metro Rail Limited.
The expenditure is classified as a loan for urban development under the account head specified for the Chennai Metro Rail Project with assistance from the Japan International Cooperation Agency. The designated Section Officer is responsible for drawing the amount by account payee cheque and informing the Finance (L&A Cell) Department of the drawal date.
Who may be affected
G.O. Ms.No.16 directly concerns Chennai Metro Rail Limited and the government departments handling the loan and its accounting. Property owners or occupants affected by Metro land requirements, rehabilitation or resettlement may have an indirect interest because the sanctioned funding includes those expenses. The document does not identify individual properties, acquisition proceedings or compensation amounts.
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Common questions
Does G.O. Ms.No.16 acquire any specific land for Chennai Metro Rail?
No specific property or acquisition proceeding is identified. The Government Order sanctions funding that includes land costs and rehabilitation and resettlement expenses.
How much funding was sanctioned for Phase-I and its extension?
The total sanction is Rs.300 crore, comprising Rs.200 crore for Phase-I and Rs.100 crore for the Phase-I Extension.
Will Chennai Metro Rail Limited receive the sanctioned amount in cash?
No. G.O. Ms.No.16 directs that the loan assistance be credited to the Public Deposit Account of Chennai Metro Rail Limited.
Which Metro extension is referred to in the Government Order?
The document refers to the extension of Corridor-1 up to Thiruvottriyur and Wimco Nagar.
