LOAN NUMBER 9093-IN




                 Program Agreement
(First Tamil Nadu Housing Sector Strengthening Program Development Policy Loan)


                                   between



                     INTERNATIONAL BANK FOR
                 RECONSTRUCTION AND DEVELOPMENT


                                     and


                           STATE OF TAMIL NADU
                                                                    LOAN NUMB ER        9093-IN

                                 PROGRAM AGREEMENT

        AGREEMENT between INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT ("Bank") and STATE OF TAMIL NADU (Variously "Tamil Nadu" or the
"Program Implementing Entity") ("Program Agreement") in connection with the Loan Agreement
("Loan Agreement") of the Signature Date between INDIA ("Borrower") and the Bank,
concerning Loan No. 9093-IN. The Bank and the Program Implementing Entity hereby agree
as follows:

                ARTICLE I - GENERAL CONDITIONS; DEFINITIONS

1.01.   The General Conditions (as defined in the Appendix to the Loan Agreement) apply to and
        form part of this Agreement.

1.02.   Unless the context requires otherwise, the capitalized terms used in this Agreement have
        the meanings ascribed to them in the Loan Agreement or the General Conditions.

                                 ARTICLE II - PROGRAM

2.01.   The Program Implementing Entity declares its commitment to the Program and its
        implementation. To this end, and further to Section 5.05 of the General Conditions:

        (a)     the Borrower, the Bank and the Program Implementing Entity shall, from time to
                time, at the request of either party to this Agreement or the Loan Agreement,
                exchange views on the Program Implementing Entity's macroeconomic policy
                framework and the progress achieved in carrying out the Program;

        (b)     prior to each such exchange of views, the Program Implementing Entity shall
                furnish to the Borrower and the Bank for its review and comment a report on the
                progress achieved in carrying out the Program, in such detail as the Bank shall
                reasonably request; and

        (c)     without limitation upon the provisions of paragraphs (a) and (b) of this Section,
                the Program Implementing Entity shall promptly inform the Borrower and the
                Bank of any situation that would have the effect of materially reversing the
                objectives of the Program or any action taken under the Program including any
                action specified in the Schedule to this Agreement.

                    ARTICLE ID - REPRESENTATIVE; ADDRESSES

3.01.   The Program Implementing Entity's Representative is its Principal Secretary of Housing
        and Urban Development Department or any other person or persons that he/she shall
        designate in writing.

3.02.   For purposes of Section 10.01 of the General Conditions: (a) the Bank's address is:
                                                -2-




        International Bank for Reconstruction and Development
        1818 H Street, N.W.
        Washington, D.C. 20433
        United States of America; and

        (b) the Bank's Electronic Address is:

        Telex:                  Facsimile:

        248423(MCI) or          1-202-477-6391
         64145(MCI)

3.03.   For purposes of Section 10.01 of the General Conditions: (a) the Program Implementing
        Entity's address is:

        Finance Department,
        Governm ent of Tamil Nadu,
        Secretariat,
        Chennai, 600009
        Tamil Nadu India; and

        (b) the Program Implementing Entity's Electronic Address is:

        E-mail:

        finsec@ tn.gov .in

AGREED as of the later of the two dates written below.


                                         INTERNATIONAL BANK FOR
                                             RECONSTRUCTION AND DEVELOPMENT


                                         By




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                                                      Date:   Ju€ 2)       2-ozo
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         -3-




    STATE OF TAMIL NADU


    By



                           Authorized Representative

               Name;   4/7&4   €HA&     < _tac.»>no
                Title: ?<19cert_     R€86N7      co44SSo€r


               Date: <Tu0G     294   o2o
                                                .4




                                           SCHEDULE

The actions taken by the Program Implementing Entity under the Program include the following:

Pillar 1: Str,engthening policies and institutions to support inclusive and efficient housing sector
development

1.      The Government of Tamil Nadu has issued the first state-level affordable urban housing
        and habitat policy.

2.      TNSCB' s Board has adopted environment, resilient urban design, social sustainability
        frameworks and grievance management redress systems, whose application is mandatory
        for all TNSCB EWS/LIG housing units.

Pillar 2: Developing an enabling environment to increase the supply of affordable housing

3.      The Government of Tamil Nadu has established the permanent Tamil Nadu Real Estate
        Regulatory Authority with full time staff and the Tamil Nadu Real Estate Appellate
        Tribunal (as published in the Government Gazette).

4.      The Government of Tamil Nadu has published in the Government Gazette the General
        Statutory Rules for the application of the Tamil Nadu Regulation of Rights and
        Responsibilities of Landlords and Tenants Act (February 2019), which creates an expedited
        dispute resolution system between landlords and tenants.

5.      The Government of Tamil Nadu has: (a) amended urban regulations through the Tamil
        N adu Combined Development and Building Rules, to increase the floor space index to
        allow higher densities in urban areas; and (b) has issued a government order to reduce
        processing time of building and planning permits.

6.      The Government of Tamil Nadu has: (a) mandated, through a notification in the
        Government Gazette, for all housing developments exceeding 3,000 square meters, to
        either designate 10% of their floor space index as EWS/LIG housing or pay the shelter
        charge whose proceeds are allocated to the financing of affordable housing projects;
        (b) optimized the plot area to allow for higher densities of EWS housing developments;
        and (c) waived the payment of floor space index premia for EWS/LIG.

Pillar 3: Crowding private sector participation in affordable housing

7.      SEBI has approved TNSF's private placement memorandum.

8.      TNIFMC's Board has adopted the environmental, climate-resilience, social and
        governance frameworks of mandatory application for all projects co-financed by TNSF.