G.O.Ms.No.36, Chennai Metro Rail Project Cost Escalation, 2015
The Planning, Development and Special Initiatives (S.I) Department issued Government Order Ms. No. 36 on 24 April 2015, sanctioning Rs.121.27 crores as the Government of Tamil Nadu share of Chennai Metro Rail Project cost escalation, to be provided as share capital to Chennai Metro Rail Limited during 2015-2016. The document concerns government financing for the Metro Rail project and contains no provisions affecting private land ownership, land records or property transactions.
What the document does
Government Order Ms. No. 36, issued by the Planning, Development and Special Initiatives (S.I) Department on 24 April 2015, approves Rs.121.27 crores as share capital for Chennai Metro Rail Limited. The amount represents the Government of Tamil Nadu's 50 per cent share of additional cost escalation for Chennai Metro Rail Project contract packages up to 30 September 2014.
Financial background
Chennai Metro Rail Limited reported total cost escalation of Rs.2,193.54 crores for various contract packages up to 30 September 2014. This was Rs.242.54 crores more than the approved escalation cost.
Under the Memorandum of Understanding entered into by the Government of India, the Government of Tamil Nadu and Chennai Metro Rail Limited on 15 February 2011, the additional escalation was to be shared equally by the two governments. Chennai Metro Rail Limited therefore requested Rs.121.27 crores from the Government of Tamil Nadu.
Key provisions
- The Government of Tamil Nadu sanctioned expenditure of Rs.121.27 crores as its share of the escalation cost.
- The sanctioned amount was classified as share capital assistance to Chennai Metro Rail Limited during 2015-2016.
- Budget provision had been made for 2015-2016, with release planned after enactment of the main Appropriation Act for that year.
- The assistance was not to be paid in cash. It was to be credited to the Public Deposit Account of Chennai Metro Rail Limited.
- The Section Officer of the Planning, Development and Special Initiatives (Bills) Department was authorised to draw and credit the sanctioned share capital.
- The Finance Department concurred with the sanction through its communication dated 4 March 2015.
Who is affected
Government Order Ms. No. 36 directly concerns Chennai Metro Rail Limited and the Tamil Nadu government departments and accounting authorities responsible for releasing, recording and auditing the funds.
Property buyers, owners and land professionals are not given any obligation or entitlement under the document. It does not announce land acquisition, change land use, alter planning controls or modify private land records.
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Common questions
Does Government Order Ms. No. 36 affect my land or property title?
No land or property title provision appears in the document. It is a financial sanction for the Government of Tamil Nadu's share of Chennai Metro Rail Project cost escalation.
How much did the Government of Tamil Nadu sanction?
The Government of Tamil Nadu sanctioned Rs.121.27 crores as share capital to Chennai Metro Rail Limited during 2015-2016.
Why was the cost shared equally with the Government of India?
The document states that the Memorandum of Understanding dated 15 February 2011 required the Government of India and the Government of Tamil Nadu to share the increased escalation cost equally.
Was the sanctioned amount paid directly in cash?
No. The document directs that the share capital assistance be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
