G.O.Ms.No.99, Chennai Metro Rail Project TNVAT Reimbursement Grant, 2016
The Planning, Development and Special Initiatives (S.I) Department issued G.O.Ms.No.99 on 1 December 2016, sanctioning Rs.57,64,00,000 as a grant to Chennai Metro Rail Limited towards part reimbursement of Tamil Nadu Value Added Tax incurred from 1 April 2014 to 31 March 2016. The grant is to be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
What the government sanctioned
The Planning, Development and Special Initiatives (S.I) Department issued G.O.Ms.No.99 on 1 December 2016 for the Chennai Metro Rail Project. It sanctions Rs.57,64,00,000 during 2016-17 as a grant to Chennai Metro Rail Limited, representing part of its claim for reimbursement of Tamil Nadu Value Added Tax incurred from 1 April 2014 to 31 March 2016.
The sanction was made 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.
Background to the reimbursement
Chennai Metro Rail Limited submitted a detailed proposal claiming reimbursement of Rs.107,48,78,309 in Tamil Nadu Value Added Tax for the period from 1 April 2014 to 31 March 2016. The proposal was accompanied by an audit certification from Chartered Accountants.
The government decided to release Rs.57,64,00,000 as only part of that reimbursement claim. The document does not state that the entire claimed amount was sanctioned through G.O.Ms.No.99.
A previous government order had sanctioned Rs.82,51,29,000 as reimbursement of Tamil Nadu Value Added Tax incurred by Chennai Metro Rail Limited from its inception through 31 March 2014.
How the grant is handled
G.O.Ms.No.99 sets out the following financial arrangements:
- The sanctioned amount is treated as a grant to Chennai Metro Rail Limited during 2016-17.
- Funds were provided in the Revised Budget Estimate for 2016-17 under the specified Urban Development head of account.
- The grant is not to be paid in cash.
- The amount is 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 is directed to draw the grant and arrange the corresponding credit.
- The Finance Department concurred with the sanction on 21 November 2016.
Who is affected
G.O.Ms.No.99 directly concerns Chennai Metro Rail Limited and the government departments and accounting authorities responsible for processing the grant. It deals with tax reimbursement and government accounting for the Chennai Metro Rail Project. It does not set out changes to private land ownership, land classification, property registration or acquisition.
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Common questions
Does G.O.Ms.No.99 change my land ownership or property records?
No land ownership or property record change is set out in G.O.Ms.No.99. The document concerns a Tamil Nadu Value Added Tax reimbursement grant to Chennai Metro Rail Limited.
How much did the government sanction for Chennai Metro Rail Limited?
The Planning, Development and Special Initiatives (S.I) Department sanctioned Rs.57,64,00,000 as part reimbursement of Tamil Nadu Value Added Tax incurred from 1 April 2014 to 31 March 2016.
Was the full Tamil Nadu Value Added Tax reimbursement claim approved?
G.O.Ms.No.99 records a claim of Rs.107,48,78,309 and sanctions Rs.57,64,00,000 as part of that claim. It does not state that the remaining amount was sanctioned.
Will the sanctioned grant be paid directly in cash to Chennai Metro Rail Limited?
No. G.O.Ms.No.99 directs that the grant be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
