The Government is providing technical assistance grant for taking up consultancies / studies to support Urban Local Bodies (ULBs) and other institutions owned or managed by Government. The funding sources are from the externally aided projects assisted by International Bank for Reconstruction and Development (The World Bank), German Development Bank (KfW), Japan International Cooperation Agency (JICA), Asian Development Bank (ADB) and by Government of Tamil Nadu (GoTN).

The Government of Tamil Nadu has created Project Development Grant Fund (PDGF). The PDGF is a non lapsable fund created to provide technical assistance to support ULBs and other institutions owned or managed by Government for providing various consultancy services in the State of Tamil Nadu. The Fund is operational from 1st April, 2015. The Fund is managed by Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL).


The PDGF is technical assistance grant to support consultancy assignments for creation of urban infrastructure, provision of urban facilities and services, up-gradation of the living standards of urban population and improvement in the delivery of urban services to such population. The PDGF will be used provide grant to carry out consultancy assignments, to operate and manage resource mobilisation programs and to carry out capacity building & development and training.


The corpus for the Fund will be provided by Government of Tamil Nadu through various sources as detailed below:

  • The external aided projects assisted by World Bank, KfW, ADB, JICA and such other funding institutions through annual budgetary allocation, based on the lines of credit in operation.
  • Plough Back of Government of Tamil Nadu’s share of Tamil Nadu Urban Development Fund’s (TNUDF) interest on units.
  • The transfer of available funds from Grant Fund-II under TNUDP III, KfW Grant Fund –II under SMIF-TN Program, SMIF-TN-II-2 Program, JBIC Grant Fund-II under TNUIP and Project Preparatory Grant Fund to the PDGF.
  • The interest from deposits, investments and any other income earned or accruing to the PDGF shall form part of its corpus and shall be applied for the objective for which the Fund is created.
  • Other sources and means as ordered by the Government form time to time.


A sum of Rs.122.63 crores (previous year Rs.47.50 crores) has been received from Government during the financial year 2022-23 and a sum of Rs.54.91 crores (previous year Rs.41.72 crores) has been disbursed to various consultancy assignments during the financial year 2022-23.

In the current financial year Rs.27.95 crores has been disbursed to various consultancy assignments upto September 2023