DEMAND No.

36

PLANNING, DEVELOPMENT AND SPECIAL

INITIATIVES DEPARTMENT

NOTE ON POLICY

INTRODUCTION

Planning, Development and Special Initiatives

Department is primarily responsible for the preparation
of the State Annual and Five Year Plans, Monitoring
and Review of expenditure in State Plan Schemes,
Poverty Alleviation Programmes, Twenty Point
Programme, and the Centrally Sponsored Schemes.
The department scrutinises proposals on development
schemes circulated by departments. The department
coordinates with various Government departments for
this objective and as the administrative department,
draws on the expertise of the State Planning
Commission (SPC), Department of Economics &
Statistics (DOES), and Department of Evaluation &
Applied Research (DEAR). The department performs a
number of coordination functions for new areas in
Government. It also takes up promotion, design and
implementation of special, innovative, multidisciplinary
projects and policies such as for e-governance across
departments through Geographic Information Systems
and by its Special Initiatives Wing, the Chennai Metro
Rail Project. At www.tn.gov.in/departments/pd.html, the
department’s website, are documents in relation to its
activity.
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1.0 MAIN ACTIVITIES

i. Preparation of Five Year Plans and Annual Plans

and liaison with the Union Planning Commission;

ii. Preparation of perspective plan, mid-term review

of five year plan, assessment of development
indicators, and evaluation of major plan
schemes. Stewards studies on formulation and
implementation of specific programmes including
natural resource assessments of land and water
use in the State;

iii. Monitoring and Review of Plan Schemes,

Twenty Point Programme, Centrally Sponsored
Schemes, and Schemes shared between State
and Centre;

iv. Monitoring and Review of progress in major

infrastructure projects;

v. Coordination Activities in Special and innovative

Projects involving several Government
departments and agencies such as in promoting
the development and use of Remote Sensing-
Geographic Information Systems applications. In
the past, the department has led in
computerisation of government activity, and in
formulating the State’s approach to the World
Trade Organisation Agreement and its domestic
impacts;

vi. Collection, compilation and dissemination of

statistical data from public and private data
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sources including State Income Estimates,
Economic Census, Agricultural Census, Socio-
Economic Surveys, Special Surveys, and
Monthly Reports on the State’s economy;

vii. Evaluation of Plan Schemes, Centrally

Sponsored Schemes and Externally Aided
Projects;

viii. Special or New Project Design and

Implementation of schemes such as the Hill Area
Development Programme (HADP) and Western
Ghats Development Programme (WGDP);

ix. Facilitating the operations of the State Planning

Commission, Department of Economics and
Statistics, and the Department of Evaluation and
Applied Research; and

x. Facilitating the Metro Rail Project under Special

Initiatives wing.

2.0 NOTES ON ACTIVITIES

The nature and status of each activity area is

briefly described below:

2.1 Consistent Growth in Outlays of Five Year

Plans

The State Government’s programme

expenditures have consistently exceeded planned
outlays encouraging higher growth rates. These have
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enabled a near doubling in levels of Approved Plan
Outlays every five years as displayed below:
(P crore)
Approved
Plan Period Expenditure
Outlay
First Plan 1951-1956 86 80
Second Plan 1956-1961 186 188
Third Plan and
1961-1969 608 613
Annual Plans
Fourth Plan 1969-1974 552 559
Fifth Plan 1974-1979 1,122 1,165
Sixth Plan 1980-1985 3,150 3,645
Seventh Plan 1985-1990 5,750 6,317
Annual Plan 1990-1991 1,450 1,591
Annual Plan 1991-1992 1,600 1,726
Eighth Plan 1992-1997 10,200 14,024
Ninth Plan 1997-2002 25,000 25,036
Tenth Plan 2002-2007 40,000 43,568

2.2 Eleventh Five Year Plan (2007 – 2012)

The Eleventh Five Year Plan achieved by March

2012, an outlay of P85,344 crores, rising 113% over
the outlay for the Tenth Plan. The Plan incorporated
the objective of achieving over 2007-2012, an Average
Annual Growth Rate (AAGR) of nine per cent in the
State’s economy.
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2.2.1 Outlays & Expenditure during Annual
Plans 2007-2012
(P crore)
Year Approved Expenditure
Outlay
11th FYP (2007-2012) 85,344 -
2007-2008 14,000 14,224
2008-2009 16,000 16,275
2009-2010 17,500 17,834
2010-2011 20,068 20,465
2011-2012 23,535 -

Expenditure exceeded Approved Outlay during

every year of the Eleventh Plan period as shown in the
above table. However, growth in the critical sectors of
power, industry and agriculture lagged and only higher
growth in services enabled the economy to achieve an
estimated AAGR of 8.3 % over the period 2007-2012.

2.2.2 Annual Plan 2012 – 2013

The Annual Plan 2012-2013 is the first year of

the Twelfth Five Year Plan (2012-2017). The size of
the Annual Plan for 2012-2013 has been proposed at
P28,000 crores. The Plan’s schemes, components and
size will be finalized during the discussion to be held
between the Hon’ble Chief Minister and the Deputy
Chairman, Union Planning Commission at New Delhi.

2.2.3 Twelfth Five Year Plan 2012 – 2017

Activities for formulating the Twelfth Five Year
Plan of the State has been taken up by the department
and work was entrusted to the State Planning
Commission. The department coordinates the
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involvement of various Secretaries and Heads of
Departments to ensure their participation in the
Steering Committees and Working Groups or Sub-
Groups formed by the Union Planning Commission so
as to effectively reflect the views and priorities of the
State Government. Central Government guidelines and
schematic priorities are kept in view while formulating
the State’s Twelfth Five Year Plan. The Commission’s
draft Report proposes to hike the outlay to an
ambitious target of P2.00 lakh crores for Plan schemes
over the Twelfth Five Year Plan period, which is 2.34
times the outlay of P85,344 crores during the Eleventh
Five Year Plan.

2.3 Review of Plan Expenditure

The progress of expenditure in Plan Schemes,

Centrally Supported Schemes and composite activities
like the Twenty Point Programme are systematically
monitored and reviewed.

2.3.1 Review of Plan Programmes

Reports on the progress of Plan Expenditure for

the Annual Plan are collected from the concerned
Secretariat Departments every month and reviewed by
the Chief Secretary to ensure full achievement of Plan
outlay before the closure of the financial year.
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2.3.2 Review of Centrally Sponsored
Schemes & Schemes shared between
State and Centre

Centrally Sponsored Schemes that are fully or

partially funded by Government of India complemented
by the State’s own or borrowed funds are implemented
in the State by different Departments and Agencies.
Considering the new conditions for fund disbursement
by the Government of India, regular monitoring will be
resumed.

2.3.3 Review of Twenty Point Programme-

2006

The Twenty Point Programme (TPP) was

formulated as a composite poverty alleviation project in
1975 and restructured in 1982, 1986 and 2006, when it
was renamed as “TPP 2006”.

The main objective of the Programme is to

eradicate poverty and improve the quality of life of the
poor and under-privileged population. The programme
components span specific issues of income
deprivation, employment generation, education,
housing, health, agriculture, land reforms, irrigation,
drinking water, protection and empowerment of weaker
sections and consumer protection.

The State Level Co-ordination Committee

Meeting on TPP-2006 held on 09.12.2011 under the
Chairmanship of the Chief Secretary to Government,
reviewed the performance of various schemes
implemented by the Departments and Organisations.
 -8-

The performance of all monitorable items are

being reviewed every month by this department and
monthly progress report is sent to the Ministry of
Statistics and Programme Implementation,
Government of India.

2.4 Monitoring and Review of Major

Infrastructure Projects

Planning & Development department services a

High Level Official Committee headed by the Chief
Secretary formed to review Major Infrastructure
Projects with outlays exceeding P100 crores. For this
purpose, major infrastructure projects are categorised
in four Groups: i) Energy, Industries and Information
Technology; ii) Highways and Minor Ports;
iii) Infrastructure Projects within Chennai Metropolitan
Area; and iv) Other Urban Infrastructure and Drinking
Water Projects. The Committee reviews progress in
implementation of these projects, bottlenecks involved
in timely completion and advises on steps to be taken
for resolving such problems including those that
requires inter-departmental coordinated action.

2.5 Geographic Information Systems and

Remote Sensing (GIS/ RS)

The Government formed a State Level Co-

ordination Committee (SLCC) on GIS / RS in G.O. Ms.
No.19, Planning and Development (PC) Department,
dated 15.2.1984 for effective and integrated use of
GIS/RS, applications in all Government departments.
In the year 2009, Information Technology Department
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was nominated as the nodal department for
implementation of GIS/RS applications in the State.
The Tamil Nadu e-Governance Agency (TNeGA) has
been entrusted the task of maintaining a central
repository of all remote sensing data and basic
analytical maps under the TNGIS project. This data is
available for access to all departments of the State
Government for development of relevant data layers by
them, some of which may also find place in the central
repository.

The State Level Coordination Committee

meeting on RS/GIS was held on 10.1.2012, under the
Chairmanship of Additional Chief Secretary to
Government, Planning, Development and Special
Initiatives Department and the steps taken for
implementation reviewed. It was also decided to form
an RS/GIS group for overseeing coordination between
various departments for deciding matters of data
purchase and equipment acquisition. It was further
decided to impart training to trainers, both in Chennai
and in the District headquarters with the help of
National Informatics Centre (NIC), Institute of Remote
Sensing (IRS), Anna University and Bharathidasan
University on need basis.

2.6 Collection, Compilation and

Dissemination of Statistics

The department is the nodal centre in

Government for the provision of statistical information
relating to the State and its economy. Such data is
collected and compiled in Government from primary
and secondary sources and also from private sources.
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2.6.1 In-house Information Provision

Most statistical information requirements of

departments are met through the Department of
Economics and Statistics established for this purpose
under this department’s control. In addition, the
department collects statistics from the rest of the
country for comparing the State’s relative performance.

2.6.2 Information Service on Economy

In G.O.Rt.No.201 Planning, Development and

Special Initiatives (MC) Department, dated 30.08.2011
the Government approved payment of P5,85,969
towards Annual Subscription/License-to-Use fees for
providing the services mentioned below by the Centre
for Monitoring Indian Economy (CMIE) for a period of
one year from September 2011 to August 2012:
Economic Intelligence Service (Full); Industry Analysis
Service; Prowess-Multi-user; State Analysis Service;
and Capex.cmie.com.

Although accessible to all departments, frequent

use is made by the following users for planning and
policy formulation: State Planning Commission;
Department of Economics and Statistics; Department
of Evaluation and Applied Research; Agriculture;
Industry and Commerce; Directorate of Sugar;
Commercial Taxes Department; Energy; Highways &
Minor Ports; and Micro, Small and Medium Enterprises.
 -11-
2.7 Evaluation of Major Programmes and
Schemes

Evaluation of schemes operated by various

organs of the Government, to ensure that benefits
actually reach the targeted population, is an important
function of the Department. Both concurrent and
terminal evaluations are done through the Directorate
of Evaluation and Applied Research (DEAR). The
evaluation work programme is taken up by the Director
after obtaining approval from a Committee in the
Planning & Development department. The Director
selects programmes in consultation with the Planning &
Development department and various other
departments and the State Planning Commission, all of
whom are also consulted to finalise the Terms of
Reference and methodology to be adopted. The DEAR
has also been provided with Part-II funding to obtain
advice from consultants on carrying out studies,
employ research assistants and to outsource
evaluations to reputed institutions. The outcomes of
evaluation are brought out as documents containing
results of field data collection, systematic analysis,
diagnosis and recommendations for on course
corrections and policy changes for consideration by the
implementing departments. The appraisal reports are
also published in the official website,
www.tn.gov.in/dear/index.htm.

2.8 Implementation of Special Programmes

and Projects

Beginning 1975, this department is implementing

two Centrally-assisted Plan programmes aimed at
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conserving the unique ecology of the Western Ghats
that form the rich forest border between Tamil Nadu
and Kerala States and continue northwards. The
programme that focuses on Nilgiris district bordering
Kerala and Karnataka States, is separately categorised
as the Hill Area Development Programme (HADP)
while the rest of the hill ranges to the south are
covered by the Western Ghats Development
Programme (WGDP). Both programmes are being
considered for renewed funding during the Twelfth Five
Year Plan and the State has pressed for continuation
with substantial increase in investment.

2.8.1 Hill Area Development Programme

The Hill Area Development Programme is

implemented in the Nilgiris District since 1975, with
financial assistance of the Union Planning
Commission, Government of India. The Programme
aims to supplement the efforts of the State
Government in preservation, protection and enrichment
of biodiversity of the hill areas.

The main objectives of the Programme are eco-

preservation and eco-restoration. All development
schemes are planned in this framework with emphasis
on preservation of biodiversity, native species and
rejuvenation of the hill ecology. The plans are prepared
on integrated watershed basis according to the
guidelines of the Union Planning Commission. The
entire Nilgiris district has been delineated into 75
macro-watersheds. HADP is intended to cover 37 out
of the 75 macro-watersheds in phases for
implementation of various schemes. Micro-watersheds
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are developed by conserving rain water, through
treatment of drainage lines, landslide prevention and
for promoting in-situ moisture conservation using eco-
friendly agricultural production systems on arable land.
Work in 33 macro watersheds has been completed
under the Hill Area Development Programme, but the
thin spread of funds sanctioned annually has prevented
a saturation approach.

The annual allocation of Special Central

Assistance (SCA) for this Programme was initially a full
grant but from 2005-2006, the Union Planning
Commission provides funds on 90% grant basis which
is released in two instalments linked to procedural
requirements. The State Government has been
permitted to take open market loans for funding the
remaining component of SCA. From the Annual Plan
2009-10 onwards, this loan portion is being treated as
“State share”.

2.8.1.1 Farmers’ Clusters formation

With a view to promote sustainable livelihoods

for farmers and the landless under Hill Area
Development Programme and Western Ghats
Development Programme, Government issued orders
for the formation of Farmers’ Clusters in
G.O.Ms.No.51, Planning, Development and Special
Initiatives (TC-II) Department, dated 29.2.2012. The
scheme of Farmers’ Clusters and Councils will promote
collective action by farmers linked with the creation of
livelihood opportunities in allied sectors for the landless
and women. The programme encourages joint action
for acquisition of common inputs and implements,
 -14-
hiring of machinery, sharing of knowledge and for
marketing. Convergence of programmes operated by
other Government departments is an added highlight of
this programme which creates an institutional
arrangement that facilitates technology transfer from
agricultural and veterinary scientists.

2.8.1.2 Performance during 2011-2012

The total allocation for the year 2011-2012

was P47.19 crores and based on proposals relevant to
various sections of Government and local government,
sanctions were issued for the entire allocation. The
sectors which received major or notable allocations
were Soil Conservation, Forestry, Horticulture, Welfare
of SC/ST, Development of Urban and Rural Local
Bodies, Roads, Tourism and Renewable Energy. A
significant feature of implementation is the
documentation by digital photographs and GPS data
for the implemented works.

2.8.1.3 Plan Proposals for 2012-2013

Based on the State’s performance, the Union

Planning Commission has allocated the State an
amount of P47.34 crores for the Annual Plan 2012-
2013. The draft Annual Plan is under preparation. The
draft Annual Plan will continue to give priority to the
sectors hitherto focused but with a greater emphasis
on community participation, farmer collectives,
innovative schemes for rural livelihood development,
and a more sensitive tribal culture orientation.
 -15-
2.8.2 Western Ghats Development
Programme

Western Ghats Development Programme

(WGDP) is being implemented in Tamil Nadu from
1975-76 with financial assistance (90% Grant and 10%
Loan) from the Union Planning Commission,
Government of India. From the Annual Plan 2009-
2010, funding pattern was altered to 90% Grant from
the Government of India and 10% State share.

The Western Ghats region in Tamil Nadu are

spread over 26,000 sq km covering around 20% of the
total geographical area of the State. This Programme is
implemented in eight districts covering 60 Blocks,
falling within 33 Taluks of Tamil Nadu. Theni and
Kanniyakumari districts are fully covered under
Western Ghats Development Programme while the
remaining six districts are partially covered.

In the absence of an implementing department,

the execution of this programme was entrusted in
2010-11 for Tamil Nadu Watershed Development
Agency (TAWDEVA) on a pilot basis in Dindigul, Theni
and Madurai districts. For 2012-13, the Agency has
been entrusted with the task in two more districts of
Virudhunagar and Tirunelveli. In respect of
Kanniyakumari district, in the absence of a District
Watershed Development Agency, the work has been
entrusted to the Project Officer, DRDA, Kanniyakumari.
The TAWDEVA has been requested to coordinate
critical activities in addition to renewable energy in
Tirupur and Coimbatore districts pending entrustment
of work in these districts.
 -16-

The broad objectives of this programme are: -

(i) Maintenance of the ecological balance

essential for life support systems;

(ii) Preservation of genetic diversity;

(iii) Restoration of ecological damage caused

by human interaction; and

(iv) Creation of awareness among the people

and educating them on the far-reaching
implications of ecological degradation and
securing their active participation for eco-
development schemes.

The focus areas are the sectors of Soil

conservation, Forest, Horticulture, Agriculture, Adi
Dravidar Welfare, Tribal Welfare, Roads, Tourism,
Animal Husbandry, Renewable Energy, Khadi and
Village Industries, Fisheries, Minor Irrigation, Town
Panchayats and Sericulture. A total of 166 watersheds
have been identified for coverage under integrated
development.

2.8.2.1 Farmers’ Clusters formation

With a view to promote sustainable livelihoods

for farmers and the landless under Hill Area
Development Programme and Western Ghats
Development Programme, the Government issued
orders for the formation of Farmers’ Clusters in
G.O.Ms.No.51, Planning, Development and Special
 -17-
Initiatives (TC-II) Department, dated 29.2.2012. The
scheme of Farmers’ Clusters and Councils will promote
collective action by formers linked with the creation of
livelihood opportunities in allied sector for the landless
and woman. The programme encourages joint action
for acquisition of common inputs and implements,
hiring of machinery, sharing of knowledge and for
marketing. Convergence of programmes operated by
other Government departments in an added highlight of
this programme which creates an institutional
arrangement that facilitates technology transfer from
agricultural and veterinary scientists.

2.8.2.2 Plan Outlay for 2011-2012 and

2012-2013

For the Annual Plan 2011-2012, an outlay of

P22.77 crores was provided by the Union Planning
Commission. Based on the State’s performance, the
Union Planning Commission has allocated an amount
of P22.84 crores for the Annual Plan 2012-2013. The
draft Annual Plan is under preparation and will continue
existing priorities in addition to a greater emphasis on
Farmers’ Clusters, Animal husbandry.

2.9 Special Initiatives and Projects

The Government decided in G.O.Ms.No.31,

Planning and Development (WTO) Department, dated
29.4.2003, to expand the Planning and Development
to include a wing for Special Initiatives and Projects.
The objectives of the Planning, Development and
Special Initiatives Department was to process
innovative schemes that emanate from different
 -18-
sources and constitute priority areas for Government
action. A large number of schemes were identified for
coordination with respective administrative
departments.

In G.O.Ms.No.146, Planning, Development and

Special Initiatives Department, dated 02.11.2006,
orders were issued for inclusion of the subject “Special
Initiatives” in the First Schedule of the Business Rules
under “Concurrent Subjects”. Instructions were
thereupon issued detailing the process by which an
initiative may become a Special Initiative and may be
advanced to implementation either by Planning,
Development & Special Initiatives department or
coordinated toward this end. Once the initiative
reached a level of maturity not requiring any further
attention of the Planning, Development & Special
Initiatives department, the project would be transferred
to the appropriate administrative department. On this
basis, in G.O.Ms.No.10, Planning, Development and
Special Initiatives Department, dated 18.01.2007,
Chennai Metro Rail Project has been declared as a
‘Special Initiative’ under the Planning, Development
and Special Initiatives Department and is under
implementation.

3.0 HEADS OF DEPARTMENT

The departments under the administrative

control of Planning, Development and Special
Initiatives Department are:

(i) State Planning Commission (SPC)

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(ii) Department of Economics and Statistics
(DOES)

(iii) Department of Evaluation and Applied

Research (DEAR)

(iv) The Chennai Metro Rail Corporation

Limited (CMRL), a Joint Sector project
under a separate Secretary (Special
Initiative).

The activities of the above departments are

briefly given below:

3.1 State Planning Commission

3.1.1 The State Planning Commission was

constituted in Tamil Nadu on 25th May 1971 under the
Chairmanship of the Hon’ble Chief Minister as an
Advisory Body to make recommendations to the
Government on various matters pertaining to the
development of the State. The Commission was last
reconstituted on 02.07.2011 with a Vice-Chairman and
six Members. The Additional Chief Secretary to
Government, Planning, Development and Special
Initiatives and the Principal Secretary to Government,
Finance Department are ex-officio Members. The
Member-Secretary of the SPC is responsible for the
administration of the Commission’s Office.
 -20-
3.1.2 The main responsibilities of the
Commission are:

(i) Advise the Government on the priorities of

the Five Year Plan (FYP) and on inclusion
of new schemes therein;

(ii) Constitute Steering Committees/Working

Groups as required for preparation of the
draft FYP, prepare and send the draft FYP
to Government for approval;

(iii) Advise the Government on the approval of

new schemes for inclusion in the State
Budget and in the Annual Plan, subject to
availability of resources;

(iv) Prepare and send the draft Annual Plans

to Government for approval;

(v) Review the progress of implementation of

projects and programmes included in the
FYP on a periodical basis, with reference
to achievement of targets/goals envisaged
in the FYP;

(vi) Undertake Mid-Term review of the FYP

and advise the Government on
appropriate modification/restructuring of
the schemes;

(vii) Undertake evaluation of major plan

schemes through the Evaluation and
Applied Research Department and
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recommend to Government, the measures
necessary to restructure or improve the
schemes based on such evaluation;

(viii) Advise the Government on the effective

implementation of Decentralised District
Planning (DDP) with reference to existing
guidelines and Government orders;

(ix) Integrate the functions of DDP and initiate

planning process at District/Block/Village
level;

(x) Advise the Government on formulation of

the Scheduled Caste Sub Plan (SCSP)
and Tribal Sub Plan (TSP) as an integral
part of Five Year/Annual Plans;

(xi) Advise the Rural Development and

Panchayat Raj Department on the
activities of District Planning Committees
in preparation of District Plan in
accordance with the guidelines already
issued;

(xii) Monitor the development indicators that

influence the Human Development Index
(HDI), Gender Development Index (GDI)
etc. at a disaggregated level and advise
the Government for appropriate
intervention; and
 -22-
(xiii) Undertake special studies as required for
formulation and implementation of plan
projects and programmes;

(xiv) Monitor the Tamil Nadu economy and

send reports to Government as and when
necessary.

3.1.3 Eleventh Five Year Plan (2007-2012)

During the Eleventh Five Year Plan period

ending March 31, 2012, an expenditure of P92,333
crores is anticipated against the outlay of P85,344
crores. Sector outlays and expenditure are as follows:

Sector Outlays/Expenditure in
Eleventh Five Year Plan [2007-12]
(P crore)
Sector Eleventh Eleventh Plan
Plan Outlay Expenditure
Agriculture & Allied Sectors 11,145 10,890
Rural Development 10,241 11,386
Energy 10,743 12,223
Industry and Minerals 3,716 2,592
Transport 11,647 10,482
Social Services 35,827 39,946
Others 2,025 4,814
Total 85,344 92,333

3.1.4 Twelfth Five Year Plan (2012-2017)

The State Planning Commission is presently

engaged in the preparation of Twelfth Five Year Plan
(2012–2017). As a prelude, the draft “Approach Paper
to the Twelfth Plan (2012-17) for Tamil Nadu” was
 -23-
prepared and hosted in the website for inviting views
and suggestions from all stakeholders. In addition, 15
Steering Committees and 47 Working Groups were
constituted covering all sectors comprising domain
experts, Government functionaries, Academicians, Civil
Society Organizations to discuss the current status,
problems, constraints and to suggest suitable
strategies.

To strengthen this process further, Regional

Consultation Meetings were also conducted at five
districts of Coimbatore, Tirunelveli, Madurai, Cuddalore
and Tiruchirappalli and inputs and suggestions were
obtained. Working group reports and other inputs
received through various sources were used as inputs
for the preparation of sector chapters for the Twelfth
Five Year Plan. Institutional support was contracted
from the Madras School of Economics (MSE), Madras
Institute of Development Studies (MIDS) and the
Institute of Financial Management and Resources
(IFMR) for preparation of the Twelfth Plan Document.
The first draft of the Twelfth Plan document prepared
by State Planning Commission has now been
circulated to all Departments for their concurrence. The
draft Plan has been formulated keeping in view
Government priorities and in consonance with the
broad objectives and themes of ‘Vision Tamil Nadu
2023’ document released by the Hon’ble Chief
Minister. This draft Twelfth Five Year Plan document
will soon be placed before the Full Commission
Meeting to be chaired by the Hon’ble Chief Minister for
its approval.
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3.1.5 Annual Plan for 2012-2013

The State’s Annual Plan largely follows the

objectives and priorities of the Five Year Plan of the
State as well as those of the Central plan. The draft
Annual Plan 2012-13 has been prepared for an outlay
of P28,000 crores, which is 18.97% more than the
outlay of Annual Plan 2011-12 (P23,535 crores). This
Annual Plan will be discussed shortly with the Union
Planning Commission for its approval on resource plan,
schematic allocation and Central support.

3.1.6 Appraisal of New Schemes

In the course of its preparation of the Annual

Plan, the State Planning Commission has appraised
the new schemes of the departments for 2012-13. The
Commission received Part II proposals (New Schemes)
from all the Administrative Departments of Government
and held discussions with the Secretaries and Heads
of Departments concerned during December 2011.
After weighing the needs and priorities of departments,
the State Planning Commission has recommended
new schemes for P150.05 crores and these have been
approved by the Government.

3.1.7 Tamil Nadu State Land Use Research

Board

The Government in G.O.Ms.No.58, Planning,

Development & Special Initiatives (SPC) Dept, dated:
10.02.2011, created the “Tamil Nadu State Land Use
Research Board (TNSLURB)” under the chairmanship
 -25-
of Vice-Chairperson, State Planning Commission as a
permanent body in the State Planning Commission.
This Board is a successor to the previously Centrally-
funded Land Use Board and for which funding has
ceased. The Land Use Research Board is intended to
promote studies and discussions in the vital area of
land use. The terms of reference of the Board include
the need to evolve formal interaction with various
stakeholders and to arrive at policy options. The State
Planning Commission will also hold seminars and
workshops, and commission studies on sustainable
management of land and water resources.

The objectives of the Board are: (a) To assess

the land resources, provide advice to Government for
policy planning, co-ordination, develop an overview
and possible priorities for land use changes, especially
in the diversion of fertile agriculture lands, development
of waste lands and marginal lands for alternative uses,
and to promote integrated scientific planning; (b) To
review programme implementation, promote formation
of a database, and utilize this database for integrated
and perspective planning; (c) To advise the
Government on sound, scientific and policy
interventions to mitigate or abate environmental
impacts of pollution and global warming; and (d) To
conserve and manage land and water resources.

The following activities were taken under

TNSLURB for the year 2011-12:

• A Sub-Group on ‘Land Use’ was constituted

under the Chairmanship of Member (Agriculture
 -26-
& Irrigation), State Planning Commission. A
chapter on ‘Land Use’ was prepared based on
the inputs given by the Sub-Group which has
been included in the Twelfth Five Year Plan
(2012-17) document.

• The first meeting of the Tamil Nadu State Land

Use Research Board held on 6th February 2012
by the Vice-Chairman, State Planning
Commission approved the Work Plan for the
year 2011-12.

• A three year research study on “Development of

integrated dry land agro-forestry system in Tamil
Nadu for enhancing livelihood opportunities”
proposed by the Institute of Forest Genetics &
Tree Breeding, Coimbatore was also approved
by the Board. The study will shortly commence.

• The study on “ Wood balance in Tamil Nadu”

prepared by the Tamil Nadu Forest Department
was printed and is being distributed to concerned
Departments, Universities, and Select Libraries.

Proposals for preparation of Work Plan pertaining

to land use have been invited from the concerned
Secretaries to Government for consideration during the
year 2012-13.

3.1.8 Human Development Assessment

Human Development Reports were planned for

preparation in different States with full funding support
 -27-
from UPC/UNDP under the “Strengthening State Plans
for Human Development” project. Human Development
Reports (HDR) were prepared for Dindigul, Sivaganga,
Tiruvannamalai, Cuddalore, Nagapattinam, the Nilgiris,
Kanyakumari and Dharmapuri districts. The concept of
Human Development has been disseminated to all
districts through workshops organized in the concerned
districts.

3.1.9 New Schemes for 2012-13

During the year 2012-13, the State Planning

Commission will be taking up studies on flagship
programmes in sectors such as Agriculture, Rural
Development and Health at a cost of P40.00 lakhs.

3.2 Department of Economics and Statistics

3.2.1 The objective of the Department of

Economics and Statistics is to collect, compile and
disseminate, timely Decision Support Information for
policy formulation of the State and Central
Governments. It is the designated nodal statistical
agency in the State. The Department undertakes the
collection and compilation of data and dissemination of
Statistics relating to areas such as Agriculture,
Industry, State Income, District Income, Prices, Market
Intelligence. The Department prepares the Annual
Statistical Hand Book and Season Crop Report,
Monthly Reviews of the Tamil Nadu Economy,
Quinquennial Agriculture/Economic Census Reports,
31 Scheme Annual Reports, one Quarterly Statistical
Abstract and other Monthly Reports.
 -28-
This department assigns priority to the following
Plan schemes and Non Plan schemes:

3.2.2 PLAN SCHEMES

A) STATE SCHEMES

Modernisation of Systems for Data Collection and

Management

In order to facilitate the functioning of the

Department of Economics and Statistics, the
department has been computerized at all levels.
Officials of the department have been trained for
compilation and online transmission of data. A Data
Bank has been established in this Department and
important databases are being stored. A Digital Library
of reports and back-up data protective systems are
maintained at the Computer Centre. Local Area
Network Connectivity is being installed in the
department for internal sharing of information and
resources.

(B) CENTRALLY SPONSORED SCHEMES

1. Agricultural Census: Agricultural Census is an

essential part of a broader system of collection of
Agricultural Statistics. The Census is a large-scale
statistical operation for the collection and compilation of
quantitative information on agriculture in the State.
Data is obtained on holdings details obtained from land
records, social status of land holders, land use, nature
of irrigation, cropping pattern, tenancy status, livestock,
use of agriculture machinery and implements, fertilizers
 -29-
use, etc. Phase-I work of the Ninth Agricultural Census
with the reference year 2010-11 has already been
completed and for the Second Phase (H1 Schedule),
data collection is under progress.

2. Sixth Economic Census: The main purpose of

conducting Economic Census is to generate an
updated frame of enterprises for detailed follow-up
surveys and will mainly provide data for the organised
and unorganised sectors. The Economic Census also
provides basic entrepreneurial data on number of
enterprises and employment in relation to different
sectors of the economy in order to facilitate planning
and development schemes. The Census collection is a
100% Centrally Sponsored Scheme.

The Census will be conducted in any of the two

months during September 2012 to March 2013 in
Tamil Nadu.

State Level Steering Committee and District

Level Co-ordination committees have been
formed by G.O.Ms.No.96, Planning,
Development & Special Initiatives (ST.2&E)
Department, dated 13.6.2011.

Ministry of Statistics and Programme

Implementation, Government of India has
approved the creation of a cell for a period of 30
months in our State for the conduct of Sixth
Economic Census.
 -30-
3. Crop Estimation Survey of Fruits and Vegetables
and Minor Crops: This scheme aims to provide
reliable estimates of production and yield per hectare
on Fruits and Vegetables and Minor Crops through
crop cutting experiments. Under the scheme, 1100
crop cutting experiments were conducted in 550
villages for the year 2011-12 to estimate the yield rates
of important horticulture crops: Grapes, Mango,
Jackfruit, Banana, Guava, Orange, Lemon and
Pineapple; and vegetable crops: Tomato, Lady's finger,
Brinjal, Sweet Potato and Cabbage. For minor crops,
1080 crop cutting experiments were conducted in 540
villages for the year 2011-12 to estimate yield rates of
Chillies, Onion, Turmeric, Potato, Coriander, Tapioca,
Cashew nut and Ginger.

4. National Technical Manpower Information

System: Data on Engineering, Management,
Pharmacy, Hotel Management and Catering
Technology Institutions and the students studying in
these institutions and their follow up in Tamil Nadu is
collected every year in order to assess the demand
and supply of technical manpower in the State.

5. India Statistical Strengthening Project: The India

Statistical Strengthening Project (ISSP) that is being
implemented with World Bank assistance primarily
focuses upon

• Improving the co-ordination and management of

statistical activities;
 -31-
• Human resource development and Developing
Statistical Infrastructure;

• Investing in physical infrastructure including

Information Technology; and

• Improving statistical operations with

dissemination of statistical data.

The Ministry of Statistics and Programme

Implementation of Government of India is the nodal
Ministry for this project. The State Government has
given its acceptance to the project through a Letter of
Participation. A State level Steering Committee under
the Chairmanship of Chief Secretary to Government
was constituted for the implementation of the project. A
project proposal for P40.76 crore for Tamil Nadu has
been approved by the Government of India. Following
the approval, a Memorandum of Understanding (MOU)
was signed between Government of India and Tamil
Nadu and P11.544 crore has been released by the
Government of India for the year 2011-2012. In
G.O.Ms.No.47 Planning, Development and Special
Initiatives (ST.2&E) Department, dated 24-02-2012, the
administrative and financial approval for P4076.24
lakhs was issued for the entire span of time and an
amount of P1226.40 lakhs was released to implement
the scheme during the financial year 2011-12.

6. Improvement of Statistical Systems at State and

District level under 13th Finance Commission
Grant: With a view to improve the comprehensiveness
and quality of statistical data and for its timely
 -32-
dissemination for policy purposes, Government of India
sanctioned P31 crore for 31 districts for the items not
covered under the India Statistical Strengthening
Project (ISSP) with the following milestones.

i. Preparation and maintenance of Business

Register at District Level.

ii. Preparation of Local Bodies Accounts by

collecting data on receipts and payments of
these bodies.

iii. Improvement of data in respect of Farm

Activities.

iv. Pooling of Central and State sample data for

generating district level parameters.

v. Providing network connectivity within districts

and with State head quarters.

The above milestones need to cover the

following important items:

(a) Hiring of manpower/outsourcing of Jobs

(b) Machinery and Equipment
(c) Training/Workshops
(d) Other expenditures
(e) Surveys & Studies

Based on guidelines, Government Orders were

issued in G.O.Ms.No.217, Planning, Development and
Special Initiatives department, dated: 11.11.2011 for an
amount of P6.20 crore for the year 2011-12.
 -33-
Accordingly, action has been initiated to acquire
equipment, tool boxes, photocopiers, and audio-visual
systems.

7. Timely Reporting Scheme on Area of Crops: The

primary aim of this scheme is to estimate the area
under high yielding and native crop varieties and the
area under irrigation over all the three seasons viz.,
Kharif, Rabi and Summer. Land use statistics are
estimated for the entire State based on the
enumeration performed in 20 per cent sample villages
every year. Joint azmoish (field inspection) is also
conducted by the officials of Statistics, Agriculture and
Revenue departments in TRS villages on a random
basis in the selected survey numbers.

During 1421 Fasli (2011-12), 3458 villages have

been selected under this scheme and work is in
progress.

8. Improvement of Crop Statistics: This scheme

seeks to identify deficiencies in the system of collection
of agricultural statistics in the State by exercising
meaningful supervision by Central and State authorities
over the primary field workers-Village Administrative
Officers, and to suggest remedial measures for
improvement of the system. The scheme will also
propose specific improvements in the Crop Estimation
System. The discrepancies noted in land records in the
inspection report of azmoish of Statistical Inspectors
are communicated to the Commissioner of Revenue
Administration and District Revenue Officers of all
districts.
 -34-
This scheme involves the following activities:

 Sample check on area enumeration (A.S. 1.0)

All the Schedules (260 villages each for Central

and State sample) have been received for
2011-2012 for both the samples in respect of
Phases-I, II & III. The final tables of the three
phases have been prepared and sent to National
Sample Survey Organisation, Faridabad.

 Page totalling of Adangal Register (A.S. 1.1)

Page-wise cropped areas have been totaled and

verified for the selected 260 villages and a final
report was sent to National Sample Survey
Organisation, Faridabad. During Fasli 1421
(2011-12), 260 villages have been selected and
work is in progress.

 Supervision of Crop Cutting Experiments

(A.S. 2.0)

During Fasli 1421 (2011-12), 780 experiments

for Central and State Samples have been
selected and work is in progress.

3.2.3 NON–PLAN SCHEMES

Non-Plan Schemes in the department enable

production of various statistical reports including on
State Income Estimation, State Accounts, Capital
Formation, Annual Survey of Industries, Monthly Index
 -35-
Number of Industrial Production, Season and Crop
Report, Crop Forecast Report, Crop Estimation Survey
on Food and Non-Food Crops, National Agricultural
Insurance Scheme, Coconut and Arecanut Survey,
Collection of Rainfall Statistics, Irrigation Statistics,
Index of Agricultural Wages, Housing Statistics,
Building Construction Cost Index, Municipal Year Book
and District Statistical Hand Book, Statistical Hand
Book of Tamil Nadu and Annual Statistical Abstract,
Handlooms, Manpower and Employment, Foreign
Trade, Market Intelligence and Prices, Consumer Price
Index for Industrial Workers, Wholesale Price Index,
Environment Statistics, Marketable Surplus, Plantation
Labour, Consumption Studies and National Sample
Survey.

3.2.4 Survey of Non-Profit Institutions

A Survey of Non-Profit Institutions was taken to

assess their sources of income, members involved and
various welfare measures carried out by them. This
survey was fully funded by Government of India. About
1,41,322 Non-Profit Institutions across the State have
been covered under this survey. Of these, 39,720
Institutions were identified and survey work has been
completed.

3.2.5 Survey on Employment and

Unemployment

A survey on Employment and Unemployment

was sponsored by the Ministry of Labour and
Employment, Government of India. In the first phase
from February 2010 to May 2010, the survey was
 -36-
conducted in the twenty districts of Thiruvannamalai,
Vellore, Coimbatore, The Nilgiris, Dindigul,
Dharmapuri, Thanjavur, Ariyalur, Tiruchirappalli,
Sivagangai, Salem, Kanniyakumari, Theni, Viluppuram,
Cuddalore, Krishnagiri, Thirunelveli, Thoothukudi,
Kancheepuram and Chennai. The survey shows that
labour participation rate in Tamil Nadu is 44.6% and
the unemployment rate is 6.0%.

In the second phase from August 2011 to

November 2011, all the 32 districts in the State were
covered and survey was completed. The results are
under compilation. Government of India have now
proposed to conduct the Third Employment and
Unemployment survey for the reference year 2012-
2013.

3.2.6 A Pilot survey on Basic Statistics on

Local Level Development (BSLLD)

A Pilot survey on Basic Statistics on Local Level

Development (BSLLD) was conducted during the year
2008-09 in all the villages of Dindigul District, as per
the guidelines given by the Ministry of Statistics and
Programme Implementation, Government of India. The
second phase of work under this survey in the same
district covering all the Panchayats for the year 2009-
10 has been completed and compilation is in progress.

3.2.7 Brief summary of Statistical

Schemes Operated

The nature and scope of the Statistical

Schemes, including Plan and Non-Plan Schemes, that
 -37-
are operated by Department of Economics and
Statistics are briefly summarised below:
AGRICULTURE STATISTICS:
1. Forecasting of Crop Advance estimates of area and
area and production production computed in
September, December, March
and June every year.
2. Estimating Final Area Crop area is estimated from
from Village Village to State level from
Jamabandhi Accounts Jamabandhi accounts at the
end of every Fasli year.
3. General Crop 8000 crop-cutting experiments
Estimation Survey are conducted on major 16
crops to assess the average
yield.
4. Crop Estimation 1100 crop-cutting experiments
Survey of Fruits and conducted for eight Fruit crops:
Vegetables Banana, Mango, Pineapple,
Guava, Jack, Orange, Lemon
and Grape, and five Vegetable
crops: Cabbage, Ladyfinger,
Brinjal, Sweet Potato and
Tomato.
5. Crop Estimation 1080 crop-cutting experiments
Survey of Minor Crops conducted for 8 minor crops:
Chillies, Turmeric, Tapioca,
Coriander, Ginger, Onion,
Potato and Cashew nut.
6. Crop Estimation Survey Area and production estimates
of Coconut and for coconut in 380 villages and
Arecanut for Arecanut in 70 villages.
7. National Agricultural 83098 crop-cutting
Insurance Scheme experiments conducted on 24
crops for estimating Firka &
Block average yield for
payment of indemnity to
affected farmers for the year
2011-12.
 -38-
8. Modified National With a view to enhance the
Agricultural Insurance scope and coverage of the
Scheme existing scheme, Government
have extended the coverage to
Village level experiments
instead of Block & Firka. As a
pilot, 3 districts covered from
2011-12 Rabi season for 11
9. Agricultural Census 9th Agricultural Census has
commenced. Collection of data
on the type of holdings and
holder’s social status, land
use, irrigation status, cropping
pattern, tenancy status,
livestock, agriculture
machinery and implements,
10. Improvement of Crop This scheme locates
Statistics deficiencies in the system of
collection of agricultural
statistics by supervising Village
Administrative Officer’s work.

11. Timely Reporting Land use statistics collected in

Scheme 20% sample villages every
year to estimate the area
under high yielding and native
crop varieties and the area
under irrigation.
12. Rainfall Statistics Rainfall collected from 628
manual rain gauge stations
and monthly, seasonal, annual
rainfall statistics are compiled.

13. Irrigation Statistics Cropped area and source-wise

Irrigation intensity, area
irrigated for major crops.
 -39-

14. Index of Agricultural Agricultural Wages collected in

Wages all the 385 blocks and index
computed monthly.
15. Marketable Surplus Quantity of Paddy available for
sale after deducting own
consumption of cultivators and
seed reserve.
16. Disaster Management Data collected from the
districts on impact of natural
calamities and relief measures
initiated for future policy
decisions.
17. Environment Statistics Data on Environmental
parameters are collected and
tabulated. A compendium of
Environment Statistics is
released every three years.

SOCIAL STATISTICS:

18. National Sample Annual survey on household

Survey consumer expenditure and on
special areas like Employment
and unemployment,
unorganized sectors, Drinking
water, Sanitation, Hygiene and
Housing condition.

19. Housing Statistics Housing and Building activities

in Public and Private sectors.
20. Building Construction Prices of certain important
Cost Index building materials and wages
of building labourers prevailing
in 16 district centres collected
on a quarterly basis and index
computed.
 -40-
21. National Technical i) Annual Report of Data from
Manpower Information Engineering, Polytechnic,
System Management, Pharmacy
and Catering Institutions on
intake and graduation of
students.
ii) Annual Report of
Employment Scenario of
technical manpower drawing
on the Annual Report of
Data above.

INDUSTRIAL STATISTICS:

22. Annual Survey of Annual survey conducted on

Industries selected industries registered
under Sections 2m(i) and 2m(ii)
of the Factories Act, 1948 to
collect data on Capital
Invested, Outstanding loans,
Number of Workers, Wages
paid to them, Input and Output,
and Value Added.
23. Index of Industrial Index of Industrial Production is
Production compiled monthly from
production data collected from
1373 selected industries.
24. Handloom Statistics Report on production, sales
and stock of Handloom cloth is
compiled on quarterly basis.
25. Foreign Trade Annual report with data from
Statistics the Customs Department on
imports and exports by Sea and
Airports located in Tamil Nadu.
26. Plantation Labour Quarterly reports on
Statistics employment, average working
days and wages earned with
data from 504 Coffee, Tea,
Rubber estates registered
under the Plantation Act.
 -41-
27. Economic Census Enumeration of entrepreneur
units to provide information on
number of establishments in
the State, type, employment
provided, establishments
with/without hired labourers,
etc.

STATE INCOME STATISTICS:

28. State Income and Gross State Domestic Product

District Income (GSDP) and Net State
Domestic Product (NSDP)
under 17 sub-sectors and per-
capita income estimated to
identify sectoral growth of
economy. District Income
Estimates are also computed.
29. State Accounts Data on State Accounts from
budgetary transaction of the
State Government and all 1104
Local Bodies collected and
compiled.
30. Capital Formation Gross Fixed Capital Formation
in State Public Sector
computed.

PRICES STATISTICS:

31. Market Intelligence Prices, arrivals, off-take, stocks

and Prices and other production, market
sentiments, etc, in respect of
important agricultural
commodities from 96 Centres
spread over the State.
32. Wholesale Price Index Wholesale prices for
(WPI) Agricultural and Industrial
commodities collected monthly
and WPI computed.
 -42-
33. Consumer Price Index Prices collected and supplied to
Labour Bureau to compute
Consumer Price Index for 6
Centres. The Department
computes Consumer Price
Index for Cuddalore and
Nagercoil Centres monthly.

OTHER ITEMS :

34. Publications The Department releases about

37 reports including Statistical
Hand Book of Tamil Nadu,
Annual Statistical Abstract,
Season and Crop Report,
Monthly Economic Review of
Tamil Nadu, District Statistical
Hand Book, and Block
Statistical Hand Book.
35. Training Capacity upgradation for
induction, in-service, computer
applications. The proposed
State Training Institute under
ISSP will broaden these
activities.

3.2.8 State Statistical Committee

Considering the importance of reliable statistics,

Government reconstituted the State Statistical
Committee in G.O.Ms.No.13, PD&SI (ST.2&E)
Department, dated 03-03-2008 to make the state
statistical system function effectively, for strengthening
inter-departmental coordination, and to streamline
functions in statistics-generating departments of
Government, with special reference to Department of
Economics and Statistics. The object is to ensure
 -43-
proper collection, processing, storage, retrieval,
dissemination and use of Statistics in Government as
well as by researchers and academicians.

3.2.9 NEW SCHEMES FOR 2012 -2013

To strengthen the infrastructure facilities of the

Department of Economics and Statistics, P30.00 lakh
has been proposed as Part-II funding for the year
2012-2013.

3.3 Department of Evaluation and Applied

Research

The Central and State Governments have been

implementing and funding a wide range of
developmental schemes and programmes. It becomes
imperative to assess the impact and outcome of such
schemes. Accordingly, the Department of Evaluation
and Applied Research has been given the
responsibility of undertaking evaluation studies to
assist the Government in policy formulation and to
improve programme implementation by the concerned
agencies.

3.3.1 The major functions of the Department

are:
i. Evaluating schemes, projects and
programmes sponsored by both the
Central and State Governments and
Externally-aided Agencies;
ii. Carrying out ad-hoc studies relating to
specific areas and socio-economic
surveys; and
 -44-
iii. Bringing out two annual Publications,
viz., 'Tamil Nadu Economic Appraisal'
and `An Economic-cum-Functional
Classification of Budgetary Transactions
of Tamil Nadu'.

3.3.2 Evaluation studies critically review:

i. the design of the project;

ii. assessing implementation processes
and project outcome;
iii. progress toward physical and financial
targets;
iv. fulfillment of objectives of the project;
v. if benefits have reached the intended
target groups and if full value was
obtained for the money spent.

3.3.3 The evaluation studies undertaken by

the Department in the past have included schemes
implemented by State and Central Governments and
Externally Aided Projects of World Bank, Danish
International Development Agency (DANIDA), Swedish
International Development Agency (SIDA), European
Economic Community (EEC) and International
Development Agency (IDA) in Tamil Nadu. In addition,
the Department carries out evaluation studies on
various components of the Hill Area Development
Programme (HADP) and the Western Ghats
Development Programme (WGDP) and in watershed
programmes as mandated by them. The Department
also undertakes quick studies and adhoc research
studies.
 -45-
3.3.4 From inception and upto February 2012,
the Department has completed 691 evaluation studies
spanning the various sectors of Nutrition, Health,
Social Welfare, Health, Irrigation, Agriculture, Forest,
Education, Housing, Adi-Dravida and Tribal Welfare,
Horticulture, Transport and Basic Services.

3.3.5 New Schemes for 2012-2013

In order to strengthen the Infrastructure facilities

and to improve the professional capabilities of the
officials of the Evaluation and Applied Research
Department, P20.00 lakhs has been proposed under
Part-II funding for the year 2012-2013 with the
following objectives:

i. Undertake evaluation studies through

outsourcing;

ii. Impart training and arranging exposure

visits to the technical staff of this
department; and

iii. Purchase of computers, laptops and

accessories.

3.3.6. Studies to be taken up during

2012-2013

About 20 evaluation studies in various sectors

are being considered for 2012 - 2013 including for
Western Ghats Development Programme (WGDP), Hill
Area Development Programme (HADP), Command
Area Development Programme (CADP) and other
 -46-
flagship schemes. In addition, the Annual Publications,
'Tamil Nadu Economic Appraisal' and ‘An Economic-
cum-Functional Classification of Budgetary
Transactions of Tamil Nadu' will be completed.

3.4 Special Initiatives and Projects

The Government decided in G.O.Ms.No.31,

Planning and Development (WTO) Department, dated
29.4.2003 to expand the Planning and Development to
include a wing for Special Initiatives and Projects. The
objectives of the Planning, Development and Special
Initiatives Department was to process innovative
schemes that emanate from different sources. A large
number of schemes were identified for coordination
with respective administrative departments.

In G.O.Ms.No.146, Planning, Development and

Special Initiatives Department, dated 02.11.2006
orders were issued for inclusion of the subject “Special
Initiatives” in the First Schedule of the Business Rules
under “Concurrent Subjects”. Instructions were
thereupon issued detailing the process by which an
initiative may become a Special Initiative and may be
advanced to implementation either by Planning,
Development & Special Initiatives department or
coordinated for this end. Once the initiative has
reached a level of maturity and does not require any
further attention in Planning, Development & Special
Initiatives department, the project would be transferred
to the appropriate administrative department. On this
basis, in G.O.Ms.No.10, Planning, Development and
Special Initiatives Department, dated 18.01.2007,
Chennai Metro Rail Project has been declared as a
 -47-
‘Special Initiative’ under the Planning, Development
and Special Initiatives Department.

3.4.1 Special Initiative: Metro Rail Project

In G.O.Ms.No.10, Planning, Development and

Special Initiatives Department, dated 18.01.2007,
Chennai Metro Rail Project has been declared as a
‘Special Initiative’ of the Planning, Development and
Special Initiatives Department.

3.4.2 Chennai Metro Rail Project

With the rapid growth of the Chennai Metropolis,

there has been increasing pressure on transport
infrastructure, especially due to runaway growth in road
traffic volumes. As a step to resolve this need, the
Government of Tamil Nadu decided to introduce the
Chennai Metro Rail Project as a new rail-based rapid
transport system. This project aims to provide in
Chennai, a fast, reliable, convenient, efficient and
economical mode of public transport, which is
strategically integrated with other forms of public and
private transport in the city including buses, suburban
trains, and the Mass Rapid Transport System (MRTS)
as well as with future additional rail systems including
monorail transport.

Under the Chennai Metro Rail Project, two

corridors have been taken up for implementation based
on the Detailed Project Report (DPR) prepared by the
Delhi Metro Rail Corporation Limited (DMRC), who are
CMRL’s Prime Consultants. These rail corridors from
Washermenpet to Chennai Airport for 23.1 km and
 -48-
from Chennai Central to St. Thomas Mount for 22.0 km
are planned to cover the following stations:

Corridor-1: Washermenpet – Mannadi – High

Court - Chennai Central – Government Estate – LIC –
Thousand Lights - Gemini – Teynampet – Chamiers
Road – Saidapet – Little Mount - Guindy – Alandur –
Officers Training Academy – Meenambakkam -
Chennai Airport; and

Corridor-2: Chennai Central – Egmore – Nehru

Park - Kilpauk Medical College – Pachaiyappa’s
College - Shenoy Nagar – Anna Nagar East – Anna
Nagar Tower - Thirumangalam – Koyambedu – CMBT
– Arumbakkam – Vadapalani – Ashok Nagar –
K.K.Nagar - SIDCO – Alandur – St. Thomas Mount.

The above two rail corridors will converge at

Chennai Central and at Alandur. The sections of
Corridor 1 from Washermenpet to Saidapet and from
Chennai Central to Thirumangalam in Corridor 2 will
operate underground while the remaining sections will
operate on elevated supports.

Following in-principle approval of the

Government of Tamil Nadu of the above project, the
proposal was recommended to Government of India for
funding and for loan assistance from domestic and
international institutions. The Government of India
accorded administrative approval in February 2009 for
implementing the project at an estimated completion
cost of P14,600 crores on joint ownership basis
between the Government of India and the Government
of Tamil Nadu by conversion of the Special Purpose
 -49-
Vehicle (SPV) already formed into a Joint Venture
Company. The Central Government consented to
contribute 15% of the project cost as equity and 5% as
subordinate debt. The State Government agreed to
contribute 15% as equity and 5.78% as subordinate
debt. The balance 59.22% will be financed by the
Japan International Cooperation Agency (JICA) as loan
assistance in accordance with guidelines of the
Government of India for such external assistance
funding.

The Government of Tamil Nadu had already

incorporated the “Chennai Metro Rail Limited” (CMRL)
on 03.12.2007 under the Companies Act. The
company was restructured on 4.6.2009 as a joint
venture company reflecting the relative stakes of the
Central and State Governments. By virtue of this
agreement, Government of India has nominated five
Directors including the Secretary, Urban Development
as non-executive Chairman and the State Government
has nominated five Directors including the Managing
Director.

The Government of Tamil Nadu has released

P1185 crores as equity and P844 crores as
subordinate debt. The Government of India has
released P733.79 crores as equity, P124 crores as
subordinate debt and P1860 crores as pass-through
assistance (senior term debt from JICA) till 31.3.2012.

For implementation of the Project, lands

belonging to State Government departments and their
agencies are obtained with orders of the Government.
 -50-
CMRL is also taking action to get lands from
Government of India and their agencies directly.
Regarding private lands, 90% of the land acquisition
has been completed under the provisions of Land
Acquisition Act, 1894.

Chennai Metro Rail Project is progressing as per

schedule. Seven elevated packages, five underground
packages, two depot packages and eight system
related packages have been awarded. 60% of
construction works relating to elevated viaducts and
stations and 20% of the underground stations and
associated tunnels have been completed upto
31.3.2012.

Chennai Metro Rail Project is expected to be

commissioned in three phases starting from 2013 end
and will be completed by 2015 end.

O.PANNEERSELVAM
Minister for Finance.