[ 69 ]

GOVERNMENT OF PUDUCHERRY

CHIEF SECRETARIAT

FINANCE DEPARTMENT (WAYS AND MEANS)

[G.O. Ms. No. 65/FD(W&M)/2024, Puducherry, dated 27th February 2024]

NOTIFICATION

Whereas, the Reserve Bank of India has requested to consider

making amendments in the Consolidated Sinking Fund Scheme of

Government of Puducherry and for this purpose has forwarded a revised

model Scheme for constitution and administration of the Consolidated

Sinking Fund of the Government of Puducherry vide Letter No. IDMD.

No. S2268/10.18.013/2023-24, dated 28-12-2023 of the Director, IDMD,

Reserve Bank of India, Mumbai.

Amﬂºƒˆ \VWÈ ∂´E>µ

La Gazette de L' État de Poudouchéry

The Gazette of Puducherry

PART - II

E≈©A ÿkπX|

EXTRAORDINAIRE

EXTRAORDINARY

∂]ÔV´D ÿ√u≈

Publiée par

Published by

ÿkπX|

Autorité

Authority

Registered with the Registrar

of Newspapers for India under

No. 10410

®ı

Amﬂºƒˆ

ÿƒÀkVF¬˛wÁ\ 2024 } ∏©´kˆ | 27 {

No.

Poudouchéry

Mardi

Février

2024

No.

Puducherry

Tuesday

27th

February

2024

(8 Phalguna 1945)

LA GAZETTE DE L'ETAT

[PART–II

And whereas, the proposal of the Reserve Bank of India has been

taken into consideration and it has been decided to accede to the request

of the Reserve Bank of India in the matter;

Now, therefore, the Lieutenant-Governor, Puducherry, is pleased to

make the following revision in the Scheme to provide for the constitution

and administration of the Consolidated Sinking Fund for the Government

of the Union territory of Puducherry, by superseding the notification

issued earlier vide this Department’s G.O. Ms. No. 60/FD (W&M)/2024,

dated 05-02-2024, namely:–

1. Title of the Scheme.— The Scheme shall be called

“Consolidated Sinking Fund (CSF), (hereinafter referred to as “the

Fund”) Scheme” of the Government of Puducherry (hereinafter referred

to as “the Government”).

2. Constitution of the Fund.— The Fund will be constituted by the

Government of Puducherry for redeeming its outstanding liabilities.

3. Objective of the Scheme.— The Fund is to be utilized as an

Amortization Fund for redemption of the outstanding liabilities of

the Government commencing from the Financial Year 2023-24.

4. Commencement of the operation of the Scheme.— The Fund

shall come into force with effect from the date of notification.

The operation of the Scheme is as under:–

(a) The Fund shall substitute the existing fund mentioned under

the extant CSF Scheme adopted by the Government.

(b) The outstanding balances of the existing Fund under the

extant CSF Scheme as at end-December, 2023 shall be transferred to the

Fund.

on March 31st of the second preceding Financial Year, or the amount of

redemption falling due during the Financial Year (April-March),

whichever is less, should be reckoned for arriving at the maximum eligible

limit for withdrawal from the CSF during the year.

(d) The Fund shall not be utilized for any purpose other than

the redemption of the outstanding liabilities of the Government.

PART–II]

LA GAZETTE DE L'ETAT

(e) The State Government can avail of short-term accommodation

under Special Drawing Facility (SDF) from Reserve Bank of India

(hereinafter referred to as ‘the Bank’), against the collateral of investment

made in CSF for meeting temporary cashflow mismatches, subject to the

terms and conditions as fixed by the Bank from time to time.

(f) The outstanding liabilities is defined to comprise both

internal debt and public account liabilities of the Government.

5. Contributions to the Fund.— The Government should make

conscious efforts towards building up the CSF corpus to five per cent

of the outstanding liabilities within a span of five years. There is no

ceiling on such contributions to the Fund in terms of number of times

of making contributions in a year. It is open to the Government to invest

in the Fund from the General Revenue at any time or from other sources

such as disinvestment proceeds, at its discretion. The Government shall

not fund its contributions to the Fund out of borrowings from the

Reserve Bank.

6. Relationship of the Fund with General Revenues.— The corpus of

the Fund comprising the periodic contributions as well as the income accruing

to the Fund shall be kept outside the General Revenue of the Government.

The Fund shall be utilized in the manner prescribed in this Scheme.

7. Administration of the Fund.— The Fund shall be administered

by Central Accounts Section of Bank at Nagpur (subject to such

directions/instructions as the Government may issue from time to time).

8. Investment of the corpus of the Fund.— The accretions to the

Fund shall be invested in Government of India (GoI) dated Securities,

Special Securities of GoI, Treasury Bills and State Government Securities

of other States of such maturities as the Bank may determine from time

to time in consultation with the Government.

Explanation :

(a) the accretions to the Fund shall include the periodic

contributions and the income accruing to the Fund from

investment thereof.

(b) the Bank will make available the securities for investment

by acquiring the securities from the secondary market,

without loading any charge other than that indicated in

paragraph 10.

LA GAZETTE DE L'ETAT

[PART–II

9. Account Transactions.— (a) The Bank would arrange to raise

debit to the account of the Government maintained with it as per the

advice of the Government.

(b) The contributions to the Fund shall be invested by the Bank

in Government Securities as indicated in paragraph 8 in multiples of

` 10,000.

shall be reinvested by the Bank in a similar manner, in multiples of

` 10,000.

(d) The investments held in the Fund and maturing during

currency of the Scheme shall be reinvested in accordance with paragraph 8.

(e) No withdrawals will be allowed from the Fund until

completion of five years from the date of constitution of the Fund.

Explanation:

(a) Withdrawals may be allowed starting from the next Financial

Year on completion of five years from the date of

constitution of the Fund.

(b) The debit to Government on account of the periodic

instalments will be accounted under the major head 8222

(Reserve Funds). On the maturity of the loan, the balance

outstanding under the head 8222 (Sub-head Sinking Fund)

will be credited to the head 8660 (Miscellaneous

Government Account) Ledger Balance Adjustment Account.

account of investment less the incidental charges in the

usual course. However, in order to ensure that the

investment transactions of the Fund, do not get mixed up

with other transactions, these will be indicated distinctly

in separate scrolls.

(d) The Bank shall arrange to collect interest on the

investments and credit the same to the Fund on the due

dates.

PART–II]

LA GAZETTE DE L'ETAT

(e) On the maturity of the securities, the Bank shall arrange to

redeem the securities. In case of premature disinvestment to

meet the liability on account of the claims to be paid,

the Bank will decide on the securities to be liquidated and sell

the securities, at the ruling price and credit the amount

realised, less incidental charges to the Fund. If, these

securities are in loss, Bank may in consultation with the

Government decide on the securities to be liquidated. As in

the case of the debit scrolls, the Bank shall use separate

scrolls for the receipts.

(f) The provision for expenditure on account of the periodic

contributions shall be made in the Budget of the Government

under the relevant head. The extent of expenditure to be

financed from the Fund shall be withdrawn from the Fund by

the disposal of the investment.

(g) The Bank shall open a Current Account and Subsidiary

General Ledger Account in the name of the Fund and furnish

to the Government as at the end of September and March

each year, a statement showing the details of investments.

10. Service charges for administration of the Fund.— The

Government shall pay to the Bank, a commission at the rate of 1/8 per cent

of one per cent on the turnover of the Fund or at the rate to be mutually

decided from time to time.

11. Accounts and Audit.— The accounts of the Fund and the

investment shall be maintained by the Accountant-General of the Union

territory of Puducherry in the normal course. The Bank will maintain

subsidiary accounts in such manner and details as may be considered by

the Government in consultation with the Accountant-General.

12. Savings.— The Government shall issue instructions relating to

the provisions of the Scheme as may be considered from time to time to

enable smooth functioning of the Scheme. In case of any difficulty in the

operation of any provision of Scheme, the Government may, if satisfied,

relax the provision.

(By order of the Lieutenant-Governor)

ASHISH MADHAORAO MORE,

Commissioner-cum-Secretary to Government

(Finance).

online publication at “https://styandptg.py.gov.in”

Published by the Director, Government Press, Puducherry.