THE WORLD BANK IBRD * IDA I WORLDBANKGROUP JUNAID KAMAL AHMAD O FFICIAL Country Director India, South Asia Region DO CUM ENTS December 26, 2017 Mr. Jasvinder Singh Joint Controller of Aid Accounts and Audit and Officiating CAAA Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: India: Tamil Nadu Irrigated Agriculture Modernization Project IBRD Loan No. 8797-IN Additional Instructions: Disbursement and Financial Information Letter ("DFIL") Mr. Singh, I refer to the Loan Agreement between India (the "Borrower") and the International Bank for Reconstruction and Development (the "World Bank") for the above-referenced Project, dated December 26, 2017. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter (DFIL), and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the DFIL may specify Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal and Reporting of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") are available in the World Bank's public website at https://www.worldbank.org and its secure web-based portal (https://clientconnection.worldbank.org) "Client Connection". The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the loan is specified below. (i) Disbursement Arrangements The table in Schedule I sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications, and instructions on supporting documentation. (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions. The World Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the World Bank's web-based portal "Client Connection". This option may be effected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications have registered as users of "Client Connection". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may continue to exercise the option of preparing and delivering THE WORLD BANK IBRD* IDA I WORLD BANKGROUP Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the World Bank's public website at https://worldbank.or, and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Borrower must prepare and furnish to the World Bank not later than sixty (60) days after the end of each calendar quarter, interim unaudited financial reports ("IFR") for the Project covering the financial information of the corresponding quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the World Bank not later than nine (9) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank's public website (http://www.worldbank.org/) and in "Client Connection". The World Bank recommends that you register as a user of "Client Connection". From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the World Bank by email at clientconnectiongworldbank.org. If you have any queries in relation to the above, please Victor Ordonez, Senior Finance Officer at vcondegworldbank.org, with copy to Radha Raju, Finance Analyst at rraiugworldbank.org, using the above reference. Yours sincerely, J John D. Blomquisto Acting Country Director India Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) Schedule 1 : Disbursement Provisions Country India Closing Date Section 111.3. of Schedule 2 to the Loan Borrower India (DEA/CAAA) Loan Agreement. Number Name of the Project Tamil Nadu Irrigated Disbursement Deadline Date Four months after the closing Agriculture Modernization Subsection 3.7 **date. Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement Yes Interim unaudited Financial Report in the format provided in Attachment 2 Advance - Designated Acct. No Not Applicable Special Commitments No Not Applicable Type Not Applicable Ceiling Not Applicable Financial Institution - Name Not Applicable Currency Not Applicable Frequency of Reporting Not Applicable Not Applicable Subsection 6.3 (* The minimum value of applications for Reimbursement is not applicable. The Authorized Signatories Letter, Withdrawal Applications and its documentation will be sent to the following address: No. 11, Taramani Main Road Taramani, Chennai - 600 113, India Attention: Ms. Sangeetha Ravikumar, Sr. Finance Officer in the Loan Operations Department. *Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing, dated February 2017" [Attachment 1 - Form of Authorized Signatory Letter] [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Mr. Junaid Kamal Ahmad, Country Director, India Re: Loan No. 8797-IN (India: Tamil Nadu Irrigated Agriculture Modernization Project) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and India (the "Borrower"), dated providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, including by electronic means, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Instruction to the Borrower: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Bank. 2 Instruction to the Borrower: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. 3 Instruction to the Borrower: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 4 Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Interim Unaudited Financial Reports (IFR) Attached in a separate file (in Excel format) TAMIL NADU IRRIGATED AGRICULTURE MODERNIZATION PROJECT INTERIM FINANCIAL REPORT- QUARTERLY BY COMPONENTS IUFR-1 Rs Million S.No Category Gross Expenditure Reimbursement% Net Expenditure 1 Goods, works,non-consulting service and 70% consulting services for the project and operating costs Goods, works, non-consulting services, training and Workshops, consulting services for the Project, and operating costs, for the Project 2 Grants under Part B (3) of the project 70% Total 0 Financial Specialist- MDPU Project Director- MDPU Date Date: TAMIL NADU IRRIGATED AGRICULTURE MODERNIZATION PROJECT INTERIM FINANCIAL REPORT- QUARTERLY BY COMPONENTS IFR-2 Rs.Million S.No Expenditure by Component Allocation as Budget in Expenditure Cumm Expl Year to Date per PAD FY.....(BE or RE) Qure Allocation % IBudget % Quarter Year to Date Cumin. To Date ________ 1 2 3 4 5 6=511 7=412 A Irrigation & Water Management I Institutional Strengthening & Capacity Bulding for Water Management 2 Irrigation Systems Modernization 3 Particapoty Irrigation Management (PIM) 4 Convergence for Improved Service Delivery 5 Cpnvergence for Improved Service Delivery Agriculture Productivity Enhancement, Diversificatio, Improved B Livelihoods, Marketing and value Addition I Agriculture Intensification and Diversification a Agriculture b TNAU- Grant Utilized c Horticulture 2 Improving Alternative Livelihood Sources through Livestock and I Inland Fisheries a Animal Husbandry b TANUVAS- Grant Utilized c Fisheries d TNFU - Grant Utilized 3 Agriculture marketing, Value Addition & Post Harvet Management a Agriculture Marketing b Agriculture Marketing Board c FPO's - Grants Utilized C Project Management Support Z Contingency Response Total (Eligible Expenditure) Financial Specialist- MDPU Project Director- MDPU Date Date: Notes to Accounts Grant in aid transferred to Universities - TNAU and other Grant in Aid Institutions (TNFU, TANUVAS and FPO's) are considered as advances for the purposes of the project and expenditure is recongnized on the 1 basis of quarterly expenditure report from TNAIJ and other institutions 2 Based on Report from Treasury (interim) / AG (A&E) -AFS. TAMIL NADU IRRIGATED AGRICULTURE MODERNIZATION PROJECT INTERIM FINANCIAL REPORT- QUARTERLY BY COMPONENTS IUFR-3 Grant in Aid Agencies Utilization of Grant in aid (Quarter) TNAU TANUVAS TNFU FPO's Total Opening Balance Add: Grant in aid received during the quarter Less: Expenditure reported Less: Amount Refunded _Closing Balance Utilization of Grant in aid (Cumulative) TNAU TANUVAS TNFU FPO's Total Opening Balance Add: Grant in aid received (Cumulative) Less: Expenditure reported (Cumulative) Less: Amount Refunded (Cumulative) Closing Balance TAMIL NADU IRRIGATED AGRICULTURE MODERNIZATION PROJECT INTERIM FINANCIAL REPORT- QUARTERLY BY COMPONENTS IUFR-4 Payments made against Contracts Subject to the Association's Prior Review S.No Contract No. Supplier/ Contractor Contract Date Contract Amount Date & No. of WB NOC Amount Paid during Cumm.Payment % of Payment to the period Contract value