G.O.Ms.No.77, Chennai Metro Rail Project, Subordinate Debt Release of Rs.200 crore, 2017
The Planning, Development and Special Initiatives (SI) Department, Government of Tamil Nadu, issued G.O.Ms.No.77 dated 13 October 2017, sanctioning Rs.200 crore as subordinate debt to Chennai Metro Rail Limited. The funding provides Rs.100 crore for Phase I and Rs.100 crore for the Phase I Extension, specifically for land costs and rehabilitation and resettlement expenses during 2017-18.
What the government sanctioned
G.O.Ms.No.77 dated 13 October 2017, issued by the Planning, Development and Special Initiatives (SI) Department, Government of Tamil Nadu, sanctions Rs.200 crore as subordinate debt to Chennai Metro Rail Limited. The amount is divided equally between Chennai Metro Rail Project Phase I and the Phase I Extension.
The Phase I Extension covers the extension of Corridor 1 up to Thiruvottriyur and Wimco Nagar. The government released the funding to meet immediate commitments connected with ongoing construction works.
Purpose and payment
The Rs.200 crore sanctioned under G.O.Ms.No.77 is specifically intended for:
- Land costs for Chennai Metro Rail Project Phase I and the Phase I Extension.
- Rehabilitation and resettlement expenses connected with those projects.
- Expenditure incurred during 2017-18.
The loan assistance is not payable to Chennai Metro Rail Limited in cash. It must be credited by adjustment into the company’s Public Deposit Account. The sanction was valid up to 31 March 2018.
Loan terms
The annexure to G.O.Ms.No.77 records the following terms:
- Borrower: Chennai Metro Rail Limited.
- Amount: Rs.200 crore.
- Repayment period: 10 years.
- Moratorium: until repayment of the Japan International Co-operation Agency loan is completed.
- Repayment starts in 2043, or when the senior debt is repaid, whichever is earlier.
- Repayment is semi-annual.
- The loan is interest free.
- Penal interest and recovery of interest do not arise.
Relevance to property owners and buyers
G.O.Ms.No.77 is a project financing decision rather than a document identifying land parcels. It may be relevant to owners or occupants connected with land needed for Chennai Metro Rail Project Phase I or the extension to Thiruvottriyur and Wimco Nagar because part of the sanctioned amount is for land costs, rehabilitation and resettlement.
G.O.Ms.No.77 does not list survey numbers, affected properties, compensation amounts or individual beneficiaries. A buyer or owner cannot rely on it alone to determine whether a particular property is affected by the Chennai Metro Rail Project.
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.77 acquire any specific land?
G.O.Ms.No.77 sanctions funding for land costs and rehabilitation and resettlement, but it does not identify any survey number or specific property.
How much funding was provided for the Chennai Metro Rail projects?
The Government of Tamil Nadu sanctioned Rs.200 crore, consisting of Rs.100 crore for Phase I and Rs.100 crore for the Phase I Extension.
Does the funding cover compensation and rehabilitation expenses?
The stated purpose includes land costs and rehabilitation and resettlement expenses for Phase I and the Phase I Extension during 2017-18.
Is the Rs.200 crore loan interest bearing?
No. The annexure describes it as an interest free loan and states that penal interest does not arise.
