January 7, 2025 Ms. Manisha Sinha Additional Secretary (OMI, Crypto & FB) Department of Economic Affairs Ministry of Finance Government of India North Block New Delhi - 110 001 Dear Ms. Sinha: Tamil Nadu Housing and Habitat Development Project (Loan No. 9094-IN) Amendment - Partial Cancelation and Retrospective Action to Allow for Incremental Expenses We refer to: (a) the Loan Agreement (“Loan Agreement”), dated June 29, 2020, between India (“Borrower”) and the International Bank for Reconstruction and Development (“Bank”) , the Project Agreement of the same date (“Project Agreement”) between the Bank and the State of Tamil Nadu (“Project Implementing Entity”), and the Implementation Agreement of the same date between the Bank and the Tamil Nadu Infrastructure Fund Management Corporation Limited, concerning the Tamil Nadu Housing and Habitat Development Project (“Project”); and (b) Amendment No. 1 to the Loan Agreement, dated February 5, 2024. We also refer to the letters from: (a) the Borrower’s Department of Economic Affairs, Ministry of Finance, dated April 29, 2024, requesting a partial cancelation of an amount of USD 8,060,000 from the Loan proceeds of the above mentioned Project; (b) the Principal Secretary, Housing and Urban Development Department, State of Tamil Nadu, dated June 18, 2024, addressed to the Department of Economic Affairs, Ministry of Finance of India, requesting to allow incremental expenses for CMDA, retrospectively, with effect from June 29, 2020; and (c) an email communication addressed to the Bank, dated November 12, 2024, from the Department of Economic Affairs, Ministry of Finance, endorsing the State of Tamil Nadu’s above mentioned request for a retrospective action in Part (b) of this paragraph. After due consideration of your request above, we wish to propose the following: 1. Pursuant to Section 7.01 of the General Conditions, the Bank hereby cancels as of April 29, 2024, an amount of eight million sixty thousand United States Dollars (US$ 8,060,000) from the Loan proceeds. Accordingly, the table in Section III.A of Schedule 2 to the Loan Agreement is deleted in its entirety and is replaced with a new table set forth in Annex 1 to this Amendment Letter. The commitment charges on the total amount cancelled cease to accrue from April 29, 2024. 2. Pursuant to Amendment No. 1 to the Loan Agreement, CMDA was included as an additional implementing entity under the Project. Among other changes in the said amendment, Incremental Operating Costs definition in the Loan Agreement was also modified to allow CMDA to charge incremental expenses under the Project. In response to the Borrower's aforementioned request, the Bank has now agreed to permit CMDA to charge the Incremental India Country Office, 70 Lodi Estate, New Delhi 110 003, India P.O. Box 416, Phone: +911141479301 / +911149247601 Ms. Manisha Sinha -2- January 7, 2025 Operating Costs from June 29, 2020, for the implementation of its respective part of the Project Except as specifically amended by this Amendment Letter (“Amendment Letter”), all other provisions of the Loan Agreement shall remain in full force and effect. The Bank will disclose this Amendment Letter and related information in accordance with the World Bank’s Policy on Access to Information. By entering into this Amendment Letter, the Borrower consents to disclosure of this Amendment Letter and related information. Please confirm your agreement to the foregoing by signing the form of confirmation set forth below, and returning one fully executed original of this Amendment Letter to us and retaining one original for your records. This Amendment Letter shall become effective as of the date of the countersignature, upon receipt by the Bank of the duly countersigned original of this Amendment Letter. Yours sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Auguste Tano Kouame Country Director, India AGREED: INDIA By: __________________________ Authorized Representative Alok Tiwari Name: ________________________ JS (FB), DEA Title: _________________________ 14-Jan-2025 Date: _________________________ Ms. Manisha Sinha -3- January 7, 2025 Annex 1 Tamil Nadu Housing and Habitat Development Project (Loan No. 9094-IN) Revised Withdrawal Table Category Amount of the Loan Percentage of Expenditures to Allocated be financed (expressed in USD) (inclusive of Taxes) (1) Subscription of equity in 30,740,000 63% TNSF for the financing of Subprojects under Part 1 of the Project (2) Goods, non-consulting 11,075,000 100% services, consulting services, Incremental Operating Costs and Training for Part 2 of the Project (3) Front-end Fee 125,000 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (4) Interest Rate Cap or Interest Amount due pursuant to Section Rate Collar premium 4.05 (c) of the General Conditions Canceled as of April 29, 2024 8,060,000 TOTAL AMOUNT 50,000,000 Ms. Manisha Sinha -4- January 7, 2025 Cc: Mr. Parameswaran Iyer, Executive Director, World Bank Mr. Hemang Jani, Senior Advisor to Executive Director, World Bank Mr. Nikunj Kumar Srivastava, Senior Advisor to Executive Director, World Bank Mr. Hrisheekesh Arvind Modak, Advisor to Executive Director, World Bank Mr. Anil Das, Advisor to Executive Director, World Bank Government of India Mr. Srinivas Katikithala, Secretary, Ministry of Housing and Urban Affairs Mr. Simrandeep Singh, Director, DEA, Ministry of Finance Mr. Avanish Kumar Mishra, Controller of Aid, Accounts and Audit, DEA, Ministry of Finance Government of Tamil Nadu Mr. T. Udhayachandran, Principal Secretary, Finance Department Ms. K. Usha, Principal Secretary, Housing and Urban Development Department Dr. S. Prabhakar, Managing Director, TNUHDB Mr. Anshul Mishra, Member Secretary, Chennai Metropolitan Development Authority, Mr. Prashant M. Wadnere, Additional Secretary, Finance Department Mr. Krishna Chaitanya, CEO, Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) Mr. K. Vijayakarthikeyan, Joint Managing Director, TNUHDB and Project Director TNHHDP Ms. S. Nandhini, DFA, CMDA Ms. Nageswari M., Chief Financial Officer, TNIFMC Ms. Manjula, Financial Advisor, PMU, TNHUDB