G.O.Ms.No.69, Release of Subordinate Debt for Chennai Metro Rail Project Phase-I, 2019
The Planning, Development and Special Initiatives (S.I) Department issued G.O.Ms.No.69 on 26 March 2019, sanctioning Rs.500.00 crore as subordinate debt to Chennai Metro Rail Limited for land cost, rehabilitation and resettlement under Phase-I of the Chennai Metro Rail Project. The amount is an interest free loan credited through Chennai Metro Rail Limited's Public Deposit Account, including to meet compensation commitments in LAOP cases.
What the government approved
The Planning, Development and Special Initiatives (S.I) Department, through G.O.Ms.No.69 dated 26 March 2019, sanctioned Rs.500.00 crore to Chennai Metro Rail Limited as subordinate debt. The funding comes from the Budget Estimate for 2018-19 and is intended to meet immediate commitments under Phase-I of the Chennai Metro Rail Project.
The sanction forms part of a larger subordinate debt allocation of Rs.3966.00 crore. Before this sanction, the State Government had released Rs.2334.22 crore to Chennai Metro Rail Limited.
Purpose and payment method
G.O.Ms.No.69 of the Planning, Development and Special Initiatives (S.I) Department provides the following:
- The loan is for land cost, rehabilitation and resettlement connected with Phase-I of Chennai Metro Rail.
- Chennai Metro Rail Limited requested the money to settle compensation amounts relating to LAOP cases.
- The Rs.500.00 crore is not paid as cash directly to Chennai Metro Rail Limited.
- The amount is credited by adjustment into Chennai Metro Rail Limited's Public Deposit Account.
- The sanction was valid up to 31 March 2019.
The Section Officer of the Planning, Development and Special Initiatives (Bills) Department was directed to draw the sanctioned amount and arrange its deposit into the specified Public Deposit Account.
Loan terms
The annexure to G.O.Ms.No.69 dated 26 March 2019 sets these loan conditions:
- Borrower: Chennai Metro Rail Limited.
- Amount: Rs.500.00 crore.
- Interest: interest free.
- Repayment period: 10 years.
- Repayment mode: semi annual.
- Moratorium: until repayment of the Japan International Co-operation Agency loan is over.
- Repayment begins in 2046, or when the senior debt is repaid, whichever is earlier.
- Penal interest and recovery of interest do not arise.
Relevance to property owners and buyers
G.O.Ms.No.69 dated 26 March 2019 is a government financing sanction rather than a notification identifying land for acquisition or changing land rights. It may be relevant to people with compensation commitments in LAOP cases under Chennai Metro Rail Project Phase-I because the sanctioned funds were requested partly to settle those amounts. The document does not list individual properties, owners or compensation amounts.
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.69 acquire any specific property?
The document sanctions funding for land cost, rehabilitation, resettlement and compensation commitments. It does not identify or acquire any specific property.
How much was sanctioned to Chennai Metro Rail Limited?
The Planning, Development and Special Initiatives (S.I) Department sanctioned Rs.500.00 crore as subordinate debt.
Can the sanctioned money be used for land compensation?
Yes. The stated purposes include land cost, rehabilitation and resettlement, and Chennai Metro Rail Limited requested the funds to settle compensation amounts in LAOP cases under Phase-I.
Does Chennai Metro Rail Limited have to pay interest on the loan?
No. The annexure describes it as an interest free loan, and states that penal interest does not arise.
