G.O.Ms.No.29, Chennai Metro Rail Project Subordinate Debt, 2018
The Planning, Development and Special Initiatives (SI) Department of the Government of Tamil Nadu issued G.O.Ms.No.29 on 27 March 2018, sanctioning Rs.300 crore as subordinate debt to Chennai Metro Rail Limited. The funding comprises Rs.92 crore for Phase-I and Rs.208 crore for the Phase-I Extension, to meet land costs and rehabilitation and resettlement expenses.
What the government order does
G.O.Ms.No.29 of the Planning, Development and Special Initiatives (SI) Department, dated 27 March 2018, sanctions Rs.300 crore as subordinate debt to Chennai Metro Rail Limited. Chennai Metro Rail Limited requested the amount to meet commitments connected with ongoing construction for Phase-I and the Phase-I Extension.
The sanctioned amount is intended for land cost and rehabilitation and resettlement expenses. It is divided as follows:
- Rs.92 crore for Chennai Metro Rail Phase-I.
- Rs.208 crore for the Phase-I Extension.
- The Phase-I Extension covers the extension of Corridor-1 up to Thiruvottriyur and Wimco Nagar.
Financial position recorded
G.O.Ms.No.29 records the subordinate debt position before the new sanction:
- Phase-I had Rs.3,966 crore earmarked, with Rs.300 crore released during the financial year 2017-18 and cumulative releases of Rs.2,242.22 crore.
- The Phase-I Extension had Rs.408 crore earmarked, with Rs.200 crore released during the financial year 2017-18 and cumulative releases of Rs.200 crore.
After including the sanctioned amount, cumulative subordinate debt sanctions are stated as Rs.2,334.22 crore for Phase-I and Rs.408 crore for the Phase-I Extension.
Loan terms and payment
The annexure to G.O.Ms.No.29 identifies Chennai Metro Rail Limited as the borrower and sets these terms:
- The sanction was valid up to 31 March 2018.
- The loan is interest free.
- The repayment period is 10 years.
- Repayment is semi-annual.
- The moratorium continues until repayment of the Japan International Co-operation Agency loan is over.
- Repayment starts in 2043, or whenever the senior debt is repaid, whichever is earlier.
- Payment is by adjustment in the Public Deposit Account of Chennai Metro Rail Limited.
Relevance to landowners and buyers
G.O.Ms.No.29 provides project finance for land costs and rehabilitation and resettlement connected with Chennai Metro Rail Phase-I and the Phase-I Extension. It does not identify particular survey numbers, properties, owners, compensation amounts or acquisition proceedings. A buyer or owner cannot determine from this document alone whether a specific property is affected.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O.Ms.No.29 acquire any specific land for Chennai Metro Rail?
G.O.Ms.No.29 funds land costs and rehabilitation and resettlement expenses, but it does not identify specific properties, survey numbers or acquisition proceedings.
How much money was sanctioned to Chennai Metro Rail Limited?
The Planning, Development and Special Initiatives (SI) Department sanctioned Rs.300 crore, comprising Rs.92 crore for Phase-I and Rs.208 crore for the Phase-I Extension.
Is the subordinate debt interest bearing?
No. The annexure states that the loan is interest free and that penal interest does not arise.
When must Chennai Metro Rail Limited repay the loan?
The repayment period is 10 years, with semi-annual repayment. Repayment begins in 2043 or whenever the senior debt is repaid, whichever is earlier, and the moratorium lasts until repayment of the Japan International Co-operation Agency loan is over.
