G.O. Ms.No.4, Release of Subordinate Debt to Chennai Metro Rail Limited, 2017
The Tamil Nadu Planning, Development and Special Initiatives (S.I) Department issued G.O. Ms.No.4 dated 30 January 2017, sanctioning Rs.88 crores as additional subordinate debt to Chennai Metro Rail Limited for Phase I land costs and Rehabilitation and Resettlement expenses during 2016-17. The interest free loan was to be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
What the government sanctioned
G.O. Ms.No.4 dated 30 January 2017, issued by the Tamil Nadu Planning, Development and Special Initiatives (S.I) Department, sanctions Rs.88 crores as subordinate debt to Chennai Metro Rail Limited. The funding is for land costs and Rehabilitation and Resettlement expenses connected with Phase I of the Chennai Metro Rail Project during 2016-17.
The government considered the funding arrangement agreed by the Government of India, the Government of Tamil Nadu and Chennai Metro Rail Limited, along with the available budget provision. The sanction followed a request from Chennai Metro Rail Limited for additional funds, including requirements arising from enhanced compensation awarded by courts.
How the funds are handled
The Rs.88 crore loan has the following conditions:
- Chennai Metro Rail Limited is the borrower.
- The Principal Secretary, Planning, Development and Special Initiatives Department controls the borrower for this purpose.
- The amount is not payable in cash. It must be adjusted through the Public Deposit Account of Chennai Metro Rail Limited.
- The sanction was valid up to 31 March 2017.
- The loan is interest free, with no penal interest.
- The repayment period is 10 years.
- Repayment is semi-annual.
- The repayment moratorium continues until repayment of the Japan International Co-operation Agency loan is over.
- Repayment is to commence in 2043 or when the senior debt is repaid, whichever is earlier.
The Section Officer of the Planning, Development and Special Initiatives (Bills) Department was directed to draw the amount by account payee cheque in favour of the Public Deposit Account of Chennai Metro Rail Limited and report the drawal date to the Finance Department.
Relevance to landowners and buyers
G.O. Ms.No.4 dated 30 January 2017 is a government funding sanction for Chennai Metro Rail Limited. It does not itself identify any parcel of land, transfer ownership, set compensation for an individual property or establish a process for buying or selling land.
Landowners affected by Phase I may note that the sanctioned money can be used for land costs and Rehabilitation and Resettlement expenses. However, the document does not name individual beneficiaries or properties, and it does not determine whether a particular owner is entitled to payment.
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.4 acquire my land for the Chennai Metro?
No individual property is identified or acquired in the document. It sanctions funding to Chennai Metro Rail Limited for Phase I land costs and Rehabilitation and Resettlement expenses.
How much money was sanctioned to Chennai Metro Rail Limited?
The Tamil Nadu Planning, Development and Special Initiatives (S.I) Department sanctioned Rs.88 crores as subordinate debt.
Is the Rs.88 crore loan interest bearing?
No. The annexure describes it as an interest free loan and states that penal interest does not arise.
Was the sanctioned amount paid directly in cash?
No. The amount was to be adjusted through the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
