G.O. Ms. No. 76, Chennai Metro Rail Project Share Capital Assistance, 2017
The Planning, Development and Special Initiatives (S.I) Department issued G.O. Ms. No. 76, dated 10 October 2017, authorising Rs.200 crore in share capital assistance to Chennai Metro Rail Limited for project implementation. The amount is divided equally between Chennai Metro Rail Project Phase-I and the Phase-I Extension, and must be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
What the government order does
G.O. Ms. No. 76 of the Planning, Development and Special Initiatives (S.I) Department provides State Government investment to Chennai Metro Rail Limited. It releases Rs.200 crore from the Budget Estimates for 2017-18 to meet immediate commitments connected with ongoing construction.
The funding is allocated as follows:
- Rs.100 crore for Chennai Metro Rail Project Phase-I.
- Rs.100 crore for the Chennai Metro Rail Project Phase-I Extension.
- The assistance is provided as share capital, meaning a State Government investment in Chennai Metro Rail Limited.
Chennai Metro Rail Limited had requested Rs.600 crore, consisting of Rs.400 crore for Phase-I and Rs.200 crore for the Phase-I Extension. The Government approved Rs.200 crore after considering that request.
Project and funding background
The revised project completion cost for Chennai Metro Rail Project Phase-I was approved at Rs.19,058 crore. The document records that the State Government had already released Rs.2,383.09 crore as share capital assistance out of a total amount of Rs.2,858 crore.
The Phase-I Corridor-1 extension covers Thiruvottriyur and Wimco Nagar. Its estimated completion cost was updated from Rs.3,001 crore to Rs.3,770 crore, and the Ministry of Urban Development, Government of India, approved the extension at the updated cost. The document states that no share capital assistance had previously been released for the Phase-I Extension.
How the money must be handled
G.O. Ms. No. 76 sets out a specific accounting process:
- The sanctioned share capital must not be paid in cash.
- It must be credited to the Public Deposit Account of Chennai Metro Rail Limited.
- The Section Officer of the Planning, Development and Special Initiatives (Bills) Department must draw the amount by account payee cheque in favour of that Public Deposit Account.
- The Managing Director of Chennai Metro Rail Limited must collect and deposit the cheque in the identified civil deposits account.
The expenditure is charged to the government account head for capital outlay on urban development and State investment in public sector and other undertakings.
Relevance to property owners and buyers
G.O. Ms. No. 76 is a project financing and government accounting document. It does not set out any change to land ownership, land records, acquisition, zoning, planning permission or development rights. Its direct operational effect is on the State Government departments and Chennai Metro Rail Limited responsible for releasing, receiving and accounting for the funds.
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. 76 acquire land for the Chennai Metro Rail Project?
No land acquisition is authorised or described in the document. It deals with the release and accounting of share capital assistance to Chennai Metro Rail Limited.
How much funding was approved for Chennai Metro Rail Limited?
The Government approved Rs.200 crore, with Rs.100 crore for Phase-I and Rs.100 crore for the Phase-I Extension.
Which areas are covered by the Phase-I Corridor-1 extension?
The document identifies the extension of Corridor-1 up to Thiruvottriyur and Wimco Nagar.
Can Chennai Metro Rail Limited receive the sanctioned amount in cash?
No. The sanctioned share capital must be credited to the Public Deposit Account of Chennai Metro Rail Limited through the accounting process specified in the document.
