11. RURAL DEVELOPMENT

Rural development is concerned with economic growth and social justice, improvement in the living standard of the rural people by providing adequate and quality social services and minimum basic needs. The present strategy of rural development mainly focuses on poverty alleviation, better livelihood opportunities, provision of basic amenities and infrastructure facilities through various programmes of wage and self- employment. In recent years, new programmes are introduced and the ongoing programmes are restructured with a view to reduce poverty and to create more employment. Around 56 percent of the state’s population is living in rural areas. As a measure to strengthen the grass root level democracy, the government is constantly endeavoring to empower the panchayat Raj Institutions (PRIs) in terms of functions, powers and finance. Grama sabha, NGOs, Self Help Groups (SHG) and PRIs are accorded adequate role to make participatory democracy meaningful and effective.

The Department of Rural Development is entrusted with the responsibility of enabling the various Panchayat Raj Institutions (PRIs) to function effectively. There are 12620 Village Panchayats, 385 Panchayat Unions and 31 District Panchayats under the purview of the department. The Department of Rural Development co-ordinates, implements and funds the schemes which aim at ensuring that the fruits of economic development reach the villages and the common man with the aim of bridging the rural- urban divide, guaranteeing wage employment and ensuring food security, making rural people the arbiters of their own destiny and to provide for their economic uplift by self employment, creating rural infrastructure for better economic opportunities and growth, ensuring dignified living and restoring lost or depleted productivity of the land for better livelihood opportunities.

Table-1: Rural Scenario in Rural Tamil Parameter Unit Year State Nadu Total Population Lakhs 2001 624.11 349.22 (56%) Proportion of SC/ % to total 2001 20.1 25.4 STs population 278.78 Total Workers Lakhs 2001 175.60 (50.3 %) (44.7%) Proportion of % to total workers 2001 85.22 81.38 Main workers Proportion of % to total workers 2001 14.78 18.62 Marginal Workers Literacy Rate % 2001 73.5 66.2 (Figures in brackets indicate percentage to State Figures) Source : Census 2001

Village Panchayats:

There are 12620 Village Panchayats in the State spread across 31 districts and 385 blocks. This includes formation of 2 new Village Panchayats viz. Perumathur and Indira Nagar in Kruinjipadi Panchayat Union of Cuddalore district. These Village Panchayats are functioning under 385 Panchayat Unions (Blocks). The average number of Village Panchayats is worked out to 421 per district and 32 per Block. Among the

148 districts, the number of village panchayats is the lowest in Nilgiris (35) and the highest in Villupuram (1004).The population wise classification of Village Panchayats revealed that 57 percent are having the population in the range of 1001-3000, 20 percent in the range of 3001-5000 and another 11 percent in the range of 5001-10000. Village Panchayats having population less than 500 and more than 10000 are meager. For administrative convenience, the village panchayats are classified into wards and there are 48105 wards in the state.

Table No.2: Population wise Classification of Village Panchayats

Sl.No. Population No. of Village Percentage Panchayats 1 Below 500 66 0.5 2 501-1,000 1,177 9.3 3 1,001-3,000 7,243* 57.4 4 3,001-5,000 2,569 20.4 5 5,001-10,000 1,379 10.9 6 Above 10,000 186 1.5

Total 12620 100

Source: Rural Development & Panchayat Raj Development Department, PolicyNote : 2009-10.

Functions and Revenues of Rural Local Bodies: i) Village Panchayats:

Among the three tiers, village panchayats play an important role in view of the wide variety of civic duties and other functions. The village panchayats are entrusted with construction, repair and maintenance of village roads and streets, drinking water supply, street lights, sanitation, construction of drains and solid waste management. The village panchayats have the power to levy taxes. The main source of income to these bodies originates from taxes, non-tax revenues, assigned and shared revenues and grants from Centre and State. ii) Panchayat Unions:

The various duties of the Panchayat Union Council include provision and maintenance of Panchayat Union roads, supply of water, construction and maintenance of elementary and middle schools, execution of welfare schemes and to undertake measures to prevent epidemics. To discharge these varied functions, the main sources of revenue are non-tax revenue, assigned and shared revenue and grants. iii) District Panchayats :

The functions of the District Panchayats are mainly advisory in nature. They prepare development plan and annual report for the district, review the development of agriculture and allied activities, identify the source of water supply, etc. They have no taxation powers as in the case of village panchayats and the only source of revenue is from statutory grants like State Finance Commission Grants and development grants under Centrally Sponsored Schemes.

149 The major sources of assigned / shared revenues to the rural local bodies are local cess, local cess surcharge, surcharge and stamp duty, entertainment tax, seignior age fee and lease amount from mines and minerals and sale proceeds of social forestry plantations.

Infrastructure Development:

A Scenario of villages lagging behind in providing the basic infrastructure facilities and Panchayat Raj Institutions constraining to provide statutory services due to inadequate resources are becoming a story of the past. Consequently the role of the village panchayats in the planning and development process is getting enlarged. This trend has resulted in reducing the gap between rural and urban in respect of the standard of living, availability of infrastructure facilities, provision of basic amenities, under employment and unemployment, illiteracy, health and lack of expertise. This has been achieved by rural development programmes implemented by the Central and State Governments aiming to provide a safety net targeting especially the rural poor. All these programmes are committed to eradicate poverty and hunger and to usher in all round development of rural masses. As a result, various State and Central Schemes, viz., Anaithu Grama Anna Marumalarchi Thittam (AGAMT), Member of Legislative Assembly Constituency Development Scheme(MLACDS) and Member of Parliament Local Area Development Scheme (MPLADS) are being implemented in the State to create infrastructure facilities that are required and to fill up the gaps in the existing ones.

Anaithu Grama Anna Marumalarchi Thittam (AGAMT):

The Anaithu Grama Anna Marumalarchi Thittam (AGAMT), a State scheme was launched in 2006-07 with a view to develop the basic infrastructure facilities in the village panchayats and it is implemented in 29 districts. The scheme accords priority to the poorest Village Panchayats which have low percapita income. One-fifths of the Village Panchayats in each Block are taken up in the ascending order of the percapita income in a year. By this way, it is proposed to cover all the Village Panchayats in the Blocks during a period of five years. The AGAMT has provided substantial resources to the tune of Rs. 20 lakhs to each village panchayat. Funds from other schemes are also dovetailed with the intention to ensure the convergence of a total of one crore rupee to each AGAMT village panchayat.

The important works taken up under the scheme are laying of cement roads, formation of pond / oorani / fish pond, development of burial ground, creation of sports centre and construction of library / village shandies. During the three years of implementation out of 12620 village panchayats 7594(60%) were covered. Of the total works (109432) taken up, about 94 percent were completed. As against the total allocation of Rs 1523.84 crore, the total expenditure was Rs1303.31 crore which worked out to 86 percent of the allocation. On an average, the cost per work stood at Rs 4.12 lakhs.

150 Table –3 : Anaithu Grama Anna Marumalarchi Thittam (AGAMT) Category 2006-07 2007-08 2008-09 Total a) Village Panchayats covered (No.) 2540 2534 2520 7594 b) Physical Achievement (No) i) Works taken up 41928 37325 30179 109432 ii) Works completed 41702 31623 30072 103397 (94.5) c) Financial Achievement (Rs Crores) i) Allocation 508.00 506.80 509.04 1523.84 ii) Expenditure incurred 474.73 369.96 458.62 1303.1 (85.5) Source: Department of Rural Development and Panchayat Raj, -15

There has been a considerable increase in the flow of funds to the villages for taking up developmental works that the village needs and to make them self reliant in all respects. The average flow of funds per AGAMT village had steadily gone up from Rs 88.14 lakh in 2007-08 to Rs 104.49 lakh (+18.6%) in 2008-09.

Table- 4 : Details of Works taken up in the AGAMT Villages Number of Works taken up Value (Rs Crores) Category (lakhs) 2006-07 2007-08 2008-09 2006-07 2007-08 2008-09 1.Other Rural Development Schemes 4.52 4.58 2.54 1199.46 1202.90 1601.45 2.Other Department Schemes 3.28 2.85 2.65 937.79 1038.28 1031.69. Total 7.81 7.43 5.19 2137.25 2241.18 2633.14 Source: Department of Rural Development and Panchayat Raj, Chennai-15.

Member of Legislative Assembly Constituency Development Scheme (MLACDS):

The Member of Legislative Assembly Constituency Development Scheme (MLACDS) is significant by its role in allotting funds for providing basic amenities like upgradation / renewal of B.T roads, provision of CC roads in rural and urban areas and provision of storm water drain etc. Under this Scheme, each MLA proposes the works that are to be executed in his constituency. The District Collector gives administrative sanction for the works. During the year 2008-09, the allocation for the implementation of the Scheme has been enhanced from Rs 1.20 crore to Rs.1.50 crore. One half of the allocation (Rs.75.00 lakhs) is earmarked for priority works specified by Government and for the remaining 50 percent of funds, MLAs can choose the works. The physical and financial achievements made under the scheme are presented below:

Table -5: Member of Legislative Assembly Constituency Development Scheme(MLACDS): Category 2007-08 2008-09 a) No. of M.L.As (including one nominated) 235 235 b) Physical Achievement (No) i) Works taken up 26095 27212 ii) Works completed 21401 26579 c) Financial Achievement (Rs Crores) i) Allocation 282.00 354 ii) Expenditure incurred 192.51 309.57 Source: Department of Rural Development and Panchayat Raj, Chennai-15.

151 The total number of works taken up had increased from 26095 to 27212 and the works completed from 21401 to 26579, registering an increase of 24.2 percent. and the allocation showed a 25 per cent enhancement from 282 crores to 354 crores during the two years viz., 2007-08 and 2008-09.

Namakku Naame Thittam ( NNT):

Namakku Naame Thittam is a State Sponsored scheme with a minimum of one- third amount as public contribution and two third contribution from Government as grants in both Rural and Urban areas. Under this Scheme, the public have the freedom to select works as per their local needs and execute the works as per the provisions in the guidelines of the Scheme. Works taken up under this Scheme can be entrusted to the contributors themselves on optional basis in respect of the works in which the Government contribution is 50 percent or less in terms of the value of work. Public works like construction of Government and Local Body School Buildings (including Compound Wall) Libraries, Hospitals, Primary Health Centres, Veterinary Dispensaries, Noon Meal Centres, Hostels, Creation of Water Supply Sources, Ration Shop Buildings, Bridges and Culverts, Upgradation of Roads and Streets, CC Pavements, Parks, Play Grounds, Traffic Islands, Fountains, Street lights, Purchase of Furniture, Computers and equipments for Government and Local Body Schools and Libraries and construction of class rooms, laboratories and toilets in Government aided schools and colleges can be undertaken under Namakku Naame Thittam. A sum of Rs. 50.00 crores was allotted by Government of Tamil Nadu for the year 2008-09. Comparing the review year 2008-09 with 2007-08, there is a shortfall of 8.88 percent in the number of works completed against taken up, 23 percent excess in the expenditure incurred against allocation, the corresponding figures for 2007-08 0.59 per cent and 14 per cent.

Table : 6 Namakku Naame Thittam ( NNT):

Category 2007-08 2008-09 a) Village Panchayats covered (No) -- -- b) Physical Achievement (No) i) Works taken up 1876 2572 ii) Works completed 1865 2346 c) Financial Achievement (Rs Crores) i) Allocation 50.00 50.00 ii) Expenditure incurred 56.92 61.56

Periyar Ninaivu Samathuvapuram :

Samathuvapurams were established in the districts in the year 1997- 98 where in all communities live with unity and brotherhood. The dream of Thanthai Periyar to form a society without social inequalities and ostracism became a reality with 145 Samathuvapurams in the State. The scheme was revived in 2007-08 with a target of forming another 95 Samathuvapurams. In the first phase, a sum of Rs.75 crore was allotted for 2008-09, 29 Samathuvapurams are established at the rate of one Samathuvapuram in each district except the Nilgiris District. In each Samathuvapuram, 100 houses are constructed at an approximate cost of Rs.1.60 lakh per house. Roads, street lights, drinking water supply and Ration shop (if so required) are also provided in each Samathuvapuram and a statue of Thanthai Periyar is installed in each Samathuvapuram.

152 Member of Parliament Local Area Development Scheme : (MPLADS)

Infrastructure development is the key for development and Member of Parliament Local Area Development Scheme (MPLADS) caters to this said need by filling the gaps existing in the provision of infrastructure through various Central and State schemes thereby ensuring over all development. A sum of Rs.2 crore is allotted per Member of Parliament (Lok Sabha and Rajya Sabha) per year for taking up developmental works identified by the concerned M.P. In the case of Lok Sabha, the Scheme is implemented in the district falling within the constituency of the M.P. concerned. In the case of Rajya Sabha, the M.P. can suggest works in one or more districts within the State from which he is elected. As far as the nominated MPs are concerned, they can suggest works anywhere in . The District Collector gives administrative sanction for the works. The guideline strictly prohibits all types of maintenance works including desilting of ponds, rivers, tanks, canals, etc. The State stands first at all India level, in the cumulative utilization of funds under MPLADS with 98.95 per cent fund utilization since 1993.

The performance made under this scheme during 2007-08 and 2008-09 is presented below:

Table- 7: Member of Parliament Local Area Development Scheme (MPLADS) Category 2007-08 2008-09 1. Financial (Rs crores) a) Allotted 114.00 114.00 b) Expenditure 115.62 104.02 2. Physical Works (Number) a) Sanctioned 3912 4254 b) Started 3912 4254 c)Completed 3892 4039 d) Ongoing 20 215 Source: Department of Rural Development and Panchayat Raj, Chennai-15

Improvement of Rural Roads:

Rural road network is the catalyst to increase the rural employment opportunities, to have better access to regulated and fair market, health, education and other public services and thus to bridge the rural-urban divide and pave the way for economic growth. The achievement of the aforesaid tasks have been made easy for the State through Rural Infrastructure Scheme, Rural Infrastructure Development Fund (RIDF); XII Finance Commission Grant and Pradhan Mantri Gram Sadak Yojana (PMGSY) designed to develop rural roads.

The State mooted the Rural Infrastructure Scheme to fill the vacuum created in the development and maintenance of basic infrastructure facilities like cement roads and buildings in rural areas consequent of the drop of Sampoorna Grameen Rozgar Yojana (SGRY) by the Central Government. Taking into consideration the representations received in this regard, a new Scheme called ‘Rural Infrastructure Scheme’ was introduced during 2008-09 with an allocation of Rs. 350 crore for the year 2008-09.

153 Funds under this Scheme were allocated at the rate of Rs. 200 crore for Village panchayats, Rs. 100 crore for Panchayat Unions and Rs. 50 crore for District Panchayats.

The NABARD assisted State Scheme, Rural Infrastructure Development Fund (RIDF) is playing a vital rate in connecting people through roads by providing motorable roads in rural areas. Under RIDF-XIII, Rs 410 crore was sanctioned in the year 2007-08 to strengthen a total length of 3720.40 kms of road connecting and passing through AGAMT (2006 – 07) Village Panchayats. So far, 3,645 km of road works have been completed. In 2008-09, as against a sanction of Rs.414.58 crore for a road length of of 2,691.73 Kms connecting and passing through AGAMT (2007–08) Village Panchayats, so far, 381.05 kms of road works have been completed at an expenditure of Rs.112.06 crore and all other roads are in advanced stage of completion.

The XII Finance Commission Grants have been utilized for the refurbish of the black topped roads connecting and passing through village panchayats in which AGAMT is being implemented. The year 2008-09, has fetched a grant of Rs 103.60 crore received for upgrading 1,500 Kms of road, of which 1,026 Kms of road works have been completed so far with an expenditure of Rs.71.53 crore.

Pradhan Mantri Gram Sadak Yojana (PMGSY):

With cent percent funding from the Government of India, the scheme was launched to provide all-weather roads, to all rural habitations with a population of more than 1000, by the year 2003 and to all rural habitations with a population between 500 and 1000, by the year 2007. The scheme was initiated in 2001 and had provided quality road for a length of 4930.98 kms at a cost of Rs.712.57 crore till 2006 .Further progress of the scheme in Tamilnadu is shown in the Table below .

Table -8 : Pradhan Mantri Gram Sadak Yojana (PMGSY) Category 2007-08 2008-09 1. Financial (Rs crores) a) Allotted 71.025 88.683 b) Expenditure 103.445* 125.756* 2.Road Works (Number) a) Sanctioned 818 1591 b) Started 818 1591 c)Completed 471 31 d) Ongoing 347 1560 3.Length in Km a) Sanctioned 2082.54 3031.09 b) Started 2082.54 3031.09 c)Completed 989.75 45.23 d) Ongoing 1092.79 2985.86 *Excess expenditure was met out from the unspent amount of funds received during the previous years, since the scheme is in operation from 2000-01 onwards.

Rural Sanitation:

Growing rural population has emphasized the need of hygiene and sanitation. Proper sanitation ensures health among the rural masses. Government schemes try to inculcate the importance of sanitation and the harmfulness of open defecation to the

154 health especially to the children through awareness campaign like street plays, short films through popular Medias like Cable Television. This is in addition to providing infrastructure like Public Sanitary Complex and subsidizing the cost of building toilets for individual households. The Total Sanitation Campaign (TSC) is one of the schemes implemented from the nineties in the State promoting the importance of sanitation.

Total Sanitation Campaign (TSC):

The Comprehensive Rural Sanitation Programme was given a new form in 1999 and the Total Sanitation Campaign (TSC) emerged. It has a unique demand-driven approach with emphasis on awareness building and meeting the demand with alternate delivery mechanisms. From the year 2006, the sharing pattern between the Centre and the State is as follows:

(a) 80:20 for Information, Education and Communication (IEC) activities, administrative costs, and rural sanitary marts. (b) 60:28:12 for individual household toilets with effect from 1.8.2008 and 60:20:20 for solid and liquid waste management and community sanitary complexes, with 20 per cent contribution from Beneficiaries/Panchayats (c) 70:30 for School and Anganwadi toilets.

The role of village panchayats in the maintenance of sanitation and hygiene in the villages has been enhanced by the Tamil Nadu Panchayats Act, 1994 by including it as their mandatory duty. The disposal of solid waste and sewage water is becoming an arduous task for many village panchayats especially those situated near the Corporation and bigger Municipalities and individual Village Panchayats may not be equipped for contracting out solid waste management and sewage disposal. Hence, it is mooted to group several suburban Village Panchayats into clusters so as to form a viable unit for contracting out or allow Village Panchayats to enter into partnership with the neighboring Corporations or Municipalities in this regard. It is also proposed to launch a State level multi-media campaign in order to change the mind-set of the rural public regarding sanitation practices and generate demand for individual household toilets. The details of the campaigns organized in the State are presented in the following table.

Table – 9: Total Sanitation Campaign (TSC):

Cumulative Achievement Achievement during Category Category ( upto 2008-09) 2008-09 1Individual BPL APL 1Individual BPL APL Household Household a)GOI approved 4214089 4030794 a) Target 4214089 4030794 b) Completed 3047778 2365052 b) Completed 370972 50995 2. School 2.School a)GOI approved 40828 a) Target 40828 b) Completed 37059 b) Completed 2919 3. Anganwadi 3. Anganwadi a)GOI approved 25470 a) Target 25470 b) Completed 23554 b) Completed 1443 4.Sanitary 4.Sanitary complex Complex a)GOI approved 1295 a) Target 1295 b) Completed 1540 b) Completed 54 Source: Department of Rural Development and Panchayat Raj, Chennai-15.

155 Rural Housing:

A Roof above ones head is an avowed dream for any one and providing one to each and one of the disadvantaged segment of the society has become the important task of the government. Hence rural housing is being nurtured as a pet subject of any government and meeting out the shortage is vital in any poverty alleviation efforts of the State. ‘Indira Awaas Yojana’(IAY) has been implemented in the state since 1997-98 to achieve the task of covering the shortage of rural housing.

Indira Awaas Yojana (IAY):

Indira Awaas Yojana, targets construction of free houses to members of the Scheduled Castes/ ScheduledTribes, freed bonded labourers in rural areas and also to non SC/ST Rural poor people living below poverty line. It is funded by the Centre and State in the ratio of 75:25.Beneficiaries are selected from the Below Poverty Line (BPL) list approved by the Grama Sabha. In the total IAY allocation, at least 60 percent should be utilized for construction / upgradation of dwelling units for SC/ST BPL households. The rest of 40 percent allocation is for non- SC/ST BPL rural households, of which 3 per cent of the above categories should be allocated for physically and mentally challenged persons. Government of India has also asked the States to earmark 15 percent of the beneficiaries from amongst minorities. New houses as well as upgradation of kutcha houses are being taken up under the scheme. The unit cost of a new house showed a constant revision taking into account the ever increasing cost of materials and labour charges etc. It was Rs.25,000/- for ordinary soil and Rs. 27,500/- for difficult soil in 2005 and presently at Rs. 55,000/- and Rs.58,500/- for ordinary and difficult soil respectively. A dovetailing with Total Sanitation Funds has ensured a further subsidy of Rs. 2,200/- to enable each beneficiary to construct a toilet in the IAY house. The minimum plinth area of a house should be 20 square metres. All new houses are provided with toilets and smokeless chulahs. Beneficiaries undertake the construction with locally available materials employing low cost technologies. Upgradation of Kutcha Houses can be taken up to a maximum of 20 per cent of IAY allocation. The unit cost is raised by Government of India from Rs 12,500 to Rs. 15,000/- in 2008.

Table – 10: Indira Awaas Yojana(IAY)

Category 2007-08 2008-09 1. Financial (Rs crores) a) Allotted 19232.92 26923.93 b) Expenditure 19232.92 26923.93 2. Houses (Number) 68523 68509 a) Sanctioned 68523 68509 b) Started 68523 68509 c)Completed 68523 68509 d) Ongoing 3.Up gradation of Kutcha Houses

(Number) a) Sanctioned 15384 17951 b) Started 15384 17951 c)Completed 15384 17951 Source: Department of Rural Development and Panchayat Raj, Chennai-15.

156 Rural Education:

Three R’s of learning such as reading, writing and arithmetic becomes a basic need of the rural children and has been reinforced by the enactment of The Right of Children to Free and Compulsory Education Act in parliament in August, 2009 and enforced in April,2010. In this context, the Panchayat Union School Renovation Programme envisages to carry out repair and improvement of all Panchayat Union Elementary Schools and Middle Schools in the State in a phased manner. There are around 22,000 Panchayat Union Primary Schools and 4,500 Panchayat Union Middle Schools which are being maintained by Block Panchayats. Due to lack of proper maintenance, most of these School buildings have become dilapidated. Hence, the repair and renovation of such long neglected School buildings in AGAMT Village Panchayats were taken up. So far in the financial years, 2006-07 and 2007-08, 10,248 schools have been taken up for renovation at a cost of Rs.135 crore. During the year 2008-09, 4439 schools were targeted for renovation with an allocation of Rs.69.36 crore. In addition, 463 Panchayat Union Elementary and Middle Schools located in Town Panchayats and Third Grade Municipalities have also been taken up for renovation at an estimated cost of Rs.14.69 crores.

Provision of Wage Employment:

Employments in rural areas seasonal due to the vagaries of monsoon and concentration of labour depending on agriculture is quite high. All inclusive growth dwells upon the concept of employment for all classes of people. The Government for the first time in the history has conferred a status of legal right for opportunity to get employment, which would go a long way to ensure a social safety net for the vulnerable groups, and an opportunity to combine growth with equity. Creation of durable economic assets in rural areas is capable of triggering opportunities for economic activity. These assets created resulted in sustained employment for the area for future growth, employment and self-sufficiency. This is sought to be achieved through shared schemes viz., National Rural Employment Guarantee Scheme (NREGS) and Sampoorna Grameen Rozgar Yojana (SGRY).

Tamil Nadu Rural Employment Guarantee Scheme (TNREGS):

The National Rural Employment Guarantee Act, was enacted in September 2005, which guarantees 100 days of employment in a financial year to any rural household whose adult members volunteer to do unskilled manual work. This Act is an important step towards the realization of “right to work”. It is also expected to enhance people’s livelihood on a sustained basis, by developing the economic and social infrastructure in rural areas. The village panchayat issues job card to every registered individual. Payment of the statutory minimum wage and equal wages for men and women are the notable features of the scheme.

The Tamil Nadu Rural Employment Guarantee Scheme (TNREGS) was launched in 2006 and implemented in six districts viz., Cuddalore. Dindigul, Nagapattinam, Sivagangai, Tiruvannamalai and Villupuram during 2006-07. Subsequently, in 2007-08, the scheme has been extended to four more districts viz., Thanjavur, Tiruvarur, Tirunelveli and Karur. In 2008-2009, 20 more districts viz. Kancheepuram Tiruvallur. Vellore, Salem, Namakkal,Dharmapuri, Krishnagiri, Erode,Coimbatore, the Nilgiris,

157 Trichy, , Ariyalur, Pudukottai, Madurai, Theni, Ramanatha puram, Virdhunagar, Thoothukudi and Kanniyakumari were brought to the ambit of the scheme.

The cost of the scheme is shared between the Centre and the State in the ratio of 90:10. The Central Government bears the cost of wages for unskilled manual workers. 75 per cent of the cost of material and wages for skilled and semi-skilled workers, administrative expenses, which could include, inter alia, the salary and allowances of Programme Officers and their support staff, work site facilities, the State NREGA Cell as well as administrative expenses of the Central Employment guarantee Council. The State Government bears the costs of 25 percent of the cost of material and wages for skilled and semi-skilled workers. Unemployment allowance payable in case the State Government cannot provide wage employment within 15 days of application and the administrative expenses of the State Employment Guarantee Council.

The field requirement of Tamil Nadu has been given good thought and priority works such as formation of new ponds,renovation of existing ponds, kuttais, kulams, ooranies, temple tanks,etc.,desilting of channels,desilting and strengthening of bunds of irrigation tanks,formation of new roads and other water conservation/soil conservation measures / flood protection measures are being taken for generating wage employment and ensuring minimum employment in a year.

As a result of the concerted efforts taken by this Government, a sum of Rs.1,885 crore has been utilized generating 2,400 lakh person days of employment up to 2008- 2009. About 82 per cent of the work force comprises of women and 59 per cent are Scheduled Castes. A notable feature of the Scheme is that it has had a buoyant effect on rural wages.

Table –11: Tamil Nadu Rural Employment Guarantee Scheme (TNREGS) Category 2007-08 2008-09 a) Village Panchayats covered (No) 5432 12618 b) Physical Achievement (No) i) Works taken up 18509 38875 ii) Works completed 8338 12676 c) Financial Achievement (Rs Crores) i) Allocation 460.58 1790.00 ii) Expenditure incurred 516.41 1005.15 d) Man days generated ( in lakhs) 642.986 1203.597 i) Men 114.00 270.80 ii) Women 538.986 932.797 e) No. of beneficiaries received 100 man days 77053 639365

Self employment:

Self-employment is the panacea for rural poverty and unemployment. The formation of Self Help Groups (SHGs) has become a social movement and it has armed the rural women folk with self empowerment coupled with economic empowerment. The government propelled the movement with implementation of schemes like ‘Swarnajayanti Gram Swarozgar Yojana’(SGSY) and the World Bank Aided Vazhndhu Kaattuvom Project which provide ample scope for creation of self-employment opportunities to the rural poor.

158 Swarna Jayanti Gram Swarozgar Yojana (SGSY):

Swarnajayanti Gram Swarozgar Yojana (SGSY), a major anti-poverty programme implemented since 1999, aims to bring the poor families above the poverty line by ensuring reasonable and sustained level of income over a period of time. This scheme is based on SHG approach and aims to graduate them from micro credit stage to micro- enterprise stage by providing skill development training, bank credit, infrastructure facilities and much needed marketing support to the products produced by them. The Government of India and the State Government are sharing the cost in the ratio of 75:25. Tamil Nadu Corporation for Development of Women (TNCDW) is in charge of SHGs, which has been spearheading the SHG movement, has brought out qualitative change in the lives of women through its definitive interventions over the last two decades. In order to bring about greater synergy and better coordination in implementing various schemes for Self Help Groups, TNCDW was brought under the control of Rural Development and Panchayat Raj Department from 2006. Further, the Board of TNCDW was broad based and reconstituted in the same year to include representatives from industry, NGO sector, Banks and Specialists who can positively guide the Corporation with their valuable inputs. In order to strengthen the monitoring arrangement, the Government have issued orders in 2007 to involve Block staff like Block Development Officer, Deputy BDOs, Extension Officer (Adi-Dravidar Welfare) and Rural Welfare Officers for monitoring and supervising Mahalir Thittam. Additionally 30 Assistant Project Officer posts were created in 2006 supplementing the existing strength of the project-implementing units. The scheme is marching ahead and its performance up to the end of March 2009 is presented below:

Table –12: Swarna Jayanti Gram Swarozgar Yojana (SGSY):

Achievement Category (1999-00 to 2008-09) 1. Number of groups formed 322318 2. Grading a) First 254421 b) Second 58013 3) Revolving Fund a) Number of groups eligible 25070 b) Groups received revolving fund 25070 4. Economic Assistance a) Groups eligible for Economic assistance 70101 5) Economic Assistance Disbursed a) Groups 70101 b) Individuals 30241(2008-09) 6)Total funds provided (Rs Crores) 7523.24 7) Total Expenditure incurred (Rs Crores) 5079.718 Source: Department of Rural Development and Panchayat Raj, Chennai-15.

Vazhndhu Kaattuvom Project:

The World Bank Aided Vazhndhu Kaattuvom Project is being implemented in the State since October 2006. The project period is six years with an outlay of Rs.717 Crores. The objectives of the Project are to empower the poorest of the poor, the marginalised and the disabled by promoting pro-poor community organizations and improving their livelihood by providing resources, external linkages and close handholding support. The Project follows community driven development approach and

159 is implemented through community organisations like Village Poverty Reduction Committees with facilitation from project staff. The project is implemented in 2,517 Village panchayats in 70 backward Blocks spread over 15 districts. The project implementation is smoothly done through institutional arrangements at various levels such as a Society at the State level, Societies at the District level, Project Facilitation Teams at the cluster level, each covering 10-15 Village panchayats. At the Village Panchayat level, an inclusive Community Organisation by name Village Poverty Reduction Committee (VPRC) is vested with the responsibility of project implementation.

The impact of the project upto March’2009 on its midterm evaluation is as follows:

¾ Project activities are going on in full swing in 1,896 Village Panchayats; ¾ The project has formed 1,695 community organizations of the poor like VPRCs and SACs and has built their capacities; ¾ The project has so far promoted 9,429 SHGs from among the ultra poor and vulnerable; ¾ The SHGs formed under the project are closely monitored by SHG trainers developed from the community; ¾ 3184 such community SHG trainers have been developed by the Project and are providing close handholding support to the SHGs; ¾ 780 PLFs have been restructured with adequate representation of the poor to make them inclusive, participatory and democratic; ¾ 75 per cent of target poor are attending to the Grama Sabhas in the project areas; ¾ Through project intervention, 5,311 SHGs have been able to receive around Rs. 27.62 crores as Revolving Fund; ¾ The practice of borrowing from moneylenders who charge exploitative rates of interest has come down drastically from 45 per cent to 17 per cent in the project villages; ¾ There is a special allocation of 40 per cent of funds for the disabled and vulnerable. Nearly 86,877 disabled and vulnerable persons (75% of the total identified) have benefited through convergence with other Government schemes through the intervention of the project; ¾ Around 50 percent of the aged receive old age pension of Rs.400/- per month; ¾ National Identity cards have been given to 48,543 disabled persons; ¾ 34,609 youth have been benefited from skill training and out of 26,257 youth who have completed skill training, 21,750 (83%) youth are gainfully employed; ¾ So far 30 Economic activity federations with a cumulative membership of 1,120 persons have been formed and have commenced functioning; ¾ Rs.103.00 lakh was released to these federations. The federations have taken up dairy, garment making, floriculture, coir making piggery, etc as activities and ¾ The livelihood promotion activities of the project have led to more than 20 per cent increase in the incomes of about 50 per cent of the target households.

Rural Development in Tamil Nadu is marching well ahead of times. The scenario in the rural areas is fast changing wherein poor people are getting guarantee of minimum employment and women folks are endowed with social and economic empowerment with their participation in Self Help Group (SHG). A rural economy with all-inclusive growth is fast emerging in the State.

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