Budget 2003 - 2004

PRIMARY SECTOR

22.   While the contribution of the primary sector to the Gross State Domestic Product has declined from over 50% in the 1960's to 17% in 2001-2002, the percentage of the population depending on the primary sector for livelihood remains as high as 62%.  The stagnation in the agriculture sector witnessed in the Ninth Plan period (1996-2001) followed by the successive failure of monsoons calls for a new development strategy.  This would include adequate emphasis on reclamation of wastelands, improvements in the irrigation potential through judicious use of available water resources, conjunctive use of water, introduction and absorption of latest yield enhancing and pest control technology and quick transition to high value crops through development of horticulture, floriculture etc.

23.    With the objective of infusing a new growth momentum to this sector, the Hon'ble Chief Minister has announced a Comprehensive Wasteland Development Programme.  This programme consists of three components.  The first component relates to bringing fallow lands, both current and permanent, owned by individual farmers under productive economic activity through an agri-clinical approach.  This programme will be intensified in the year 2003-2004.  The second component comprises getting Corporate houses and federations of self-help groups to undertake development of wastelands along with an associated rural industry.  The third component focuses on promoting agro-based food-processing industries with a minimum investment of Rs.1 crore in each of the 385 blocks of the State under the New Anna Marumalarchi Thittam. We plan to push ahead in all three components in the coming year. The Budget provides for Rs. 25 crores for the programme for improvement of wasteland based on the participatory and agri-clinical approach.  The Budget also makes a provision of Rs.10 crores for capital subsidy to new units under the New Anna Marumalarchi Thittam. Under this programme, so far 320 proposals covering 220 blocks with a project cost of Rs.267 crores are under process.  Sanctions for 33 units with an outlay of Rs.23.14 crores have been accorded. 

24.    New technology absorption is emerging as a key issue in agriculture development.  Precision farming will have to be the new watchword. Based on the success of the water efficient agriculture practices in Israel, we propose to launch a similar programme for Dharmapuri district in the coming year with an outlay of Rs. 2 crores.  Based on this experience, similar modules will be developed for other districts by the Tamil Nadu Agricultural University.

25.    Horticulture development will be the engine of growth for the primary sector.  As a follow-up to the Horticulture Development Mission, this Government has decided to constitute Crop-specific Missions to enhance the production and productivity of mangoes, bananas, cashews, hybrid vegetables, medicinal and aromatic plants and cut flowers in the State. We will have a special Mission for biofuel plants such as Jatropha, Paradise tree etc.  Members of the House are aware that we are establishing three Agri Export Zones at Hosur, Nilgiris and Theni.  In The Nilgiris district, the project will be taken up at a cost of Rs.15.89 crores and in Theni district at a cost of Rs. 24.60 crores.

26.   We need to have a new strategy for expanding the net irrigated area as we have exhausted our surface water resources. Even maintaining the existing level of assured irrigation is becoming a serious problem. This Government has approached the World Bank for financing the Water Resources Consolidation Project-II with an outlay of Rs.2900 crores for basin based improvement of reservoirs, tanks and distribution systems. As the sanction from the World Bank for this project is likely to take some more time, we have requested for the extension of the on-going Water Resources Consolidation Project-I by a year with an outlay of Rs.100 crores.  We hope to get the approval for this soon. 

27.    The Budget for 2003-2004 gives very high emphasis to enhancing the irrigation potential in the State. The provision for the scheme for drip irrigation has been stepped up from Rs.11.79 crores in the current year to Rs. 30 crores in 2003-2004. A new programme for improving the energy efficiency of farm pumpsets and providing a technology package to these farmers in order to increase the area under irrigation with better yield, will be implemented in the coming year with an outlay of Rs. 10 crores. In pursuance of the announcement made by the Hon'ble Chief Minister, Puratchi Thalaivi  J Jayalalithaa a special scheme envisioning direct cash support to small and marginal farmers will be implemented in 2003-2004 to enable them to pay their dues to the Tamil Nadu Electricity Board based on the tariff announced by the Tamil Nadu Electricity Regulatory Commission. The Budget for the coming year makes a provision of Rs.100 crores for this purpose. This Government will ensure that the interests of small and marginal farmers are always protected.

28.   The Government has launched a special Food For Work programme as a part of the drought relief operations.  A special scheme for desilting and renovating system and non‑system tanks under the control of the Public Works Department will be implemented in 2003-2004 with a total outlay of Rs. 100 crores. The cash support of Rs. 25 crores has been provided in the Budget. This will be combined with the allotment of rice valued at Rs. 75 crores. A similar programme for desilting and improving small village ponds and tanks with an ayacut of less than 100 acres under the control of Village Panchayats and Panchayat Unions, respectively, will also be implemented in the coming year with an outlay of Rs. 50 crores. This programme includes a rice component valued at Rs. 37.50 crores. The cash component of Rs. 12.50 crores has been provided in the Budget. Another programme for desilting tanks and other water bodies will be implemented in Ramanathapuram district at a total project cost of Rs. 24.36 crores during 2003- 2004.

29.   The Hon'ble Chief Minister, Puratchi Thalaivi J Jayalalithaa has placed the highest emphasis on rain water harvesting both in urban and rural areas.  In the context of the extreme water shortage being faced by the State, we have to ensure that rain water is properly utilised.  The Tamil Nadu Agricultural University has suggested that rain water harvesting structures for irrigation can be promoted.  There are totally 1.59 lakh unused wells which can be utlised as rain water harvesting structures.  We will implement a programme to do so in the coming year.  This will be a joint effort between the departments of Agriculture, Rural Development and the farmers.  Likewise, the programme of farm ponds, which the Hon'ble Chief Minister initiated during the last Kuruvai season in the Cauvery delta districts will be expanded to other districts.

30.    In the Cauvery delta area, particularly in the tail end area, we will implement a programme of rehabilitation of irrigation control structures so that there can be better regulation of the on-farm irrigation.  Simple practices developed by the Tamil Nadu Agricultural University will be popularised in the delta districts to enable farmers to manage the available water better and get better yield.  Pumping schemes in the tail end region will be made to function more effectively.

31.    The Budget for 2003-2004 provides for a total outlay of Rs.748.00 crores for irrigation as against Rs.668.94 crores in the current year's Budget Estimates.

32.    Animal Husbandry is an integral part of rural life and a key activity to provide sustainable growth in the rural economy. The Hon’ble Chief Minister has indicated that homestead farming that involves integrating agriculture with animal husbandry should be given a new thrust in the coming year. The Budget makes an initial outlay of Rs. 1 crore for promoting agriculture together with animal husbandry in an integrated manner.  A pilot scheme for homestead farms together with goat‑rearing will also be launched during the coming year. 

33.    Hon'ble Members will be pleased to know that the Government has sanctioned Rs. 20 crores in the current year to mitigate the adverse effects of the drought on the livestock in the State. This is being used for providing water supply, purchase of vaccines and medicines, upgradation of infrastructure and for ensuring availability of fodder. Under the on-going Livestock Protection Scheme, 4494 health camps have been held in 2002-2003.  This programme will be continued in 2003-2004 and an allocation of Rs.2.14 crores has been made for this purpose. 

34.   Under the DANIDA-assisted Livestock Development Project, 45 Panchayat Unions are being covered.  In this project, link worker couples are trained along with selected farmers in various animal husbandry practices with the objective of getting all farmers to increase their income and for providing veterinary health care.  This will be replicated in 6 more districts. The assistance of veterinary science graduates will be enlisted in a self‑employment scheme for expanding veterinary health care services in the State.

35.   I am happy to inform the House that the Government of India has cleared the implementation of the National Programme for Cattle and Buffalo Breeding for our State at a total cost of Rs. 20 crores. This project aims at improving the quality of livestock and conservation of indigenous breeds. We have set up the Tamil Nadu Livestock Development Agency to spearhead the implementation of this project.

36.    Members of the House are aware of the Fisheries Development Mission launched by the Hon’ble Chief Minister on 18.7.2002 with the objectives of increasing marine and inland fish production, preserving their biodiversity and improving post-harvest storage and marketing. The activities under the Mission will be further intensified in the coming year. 

37.    The Budget for 2003-2004 makes a provision of Rs. 25.13 crores towards the relief being provided to marine fishermen during the lean season. The housing programme for fishermen is set to get a tremendous boost in the next financial year and an allocation of Rs. 10.21 crores has been made for this purpose. Proposals for the construction of a fishing harbour at Rameswaram at a cost of Rs.48.84 crores and a fishing harbour at Pazhayar Stage-II at a cost of Rs.10.60 crores have been posed to the Government of India for funding. Construction of 10 fish landing centres at total cost of Rs.13.23 crores has already been approved and works have commenced at six places.

COMPREHENSIVE RURAL DEVELOPMENT

38.    This Government accords the highest priority to comprehensive rural development, besides promoting gainful economic activity through accelerated development of the primary sector. We shall concentrate on providing essential rural infrastructure not only to improve the quality of life but also to provide additional avenues for employment.

39.    In 2003-2004, we shall obtain loan assistance from NABARD to the tune of Rs.400 crores for financing various components of rural infrastructure development. This will include laying of rural roads and bridges, improvements in the facilities in rural schools, upgradation of rural health infrastructure, irrigation schemes, rainwater harvesting structures, rural electrification and others. This programme will go a long way in promoting avenues for rural employment and creation of adequate infrastructure.

40.   Rural electrification will receive a special thrust in 2003-2004. Schemes for improvement of power system networks will be taken up in the coming year in rural areas with a total outlay of Rs. 232.30 crores.  This investment will go towards the establishment of 35 new sub-stations, enhancement of power transformers in 39 sub-stations and erection of 2313 new distribution transformers. Hon'ble Members of the House will be pleased to know that a special programme for providing solar energy-based electric connections to 149 remote and small habitations would be implemented in a phased manner from 2003-2004. These massive investments will give a tremendous boost to the quality and reliability of energy supply in the rural areas.  The Budget also makes a provision of Rs.14 crores for assistance to hut dwellers to enable them to pay their dues to the TNEB.

41.    The Sampoorna Grama Rojgar Yojana (SGRY) is the main programme for rural works, which is supported by the Government of India.  In 2002-2003, a total of 79,111 works were taken up under this programme.  In 2003-2004, we plan to take up 100,000 works in rural areas.  The Budget includes an outlay of Rs.55.05 crores as the State’s cash support for this scheme and it will be implemented along with the rice component in the next financial year. 

42.   This Government is implementing the Village Self-Sufficiency Scheme as a participatory and rural demand‑driven innovative programme. The Budget includes an allocation of Rs.20 crores for this programme.

43.    Upgradation and maintenance of rural roads would receive special attention in 2003-2004. The funds available under the  Prime Minister's Gram Sadak Yojana (PMGSY) would be utilized to upgrade 2937 Kms. of rural roads at an estimated cost of Rs.367.22 crores. The Government has announced an ambitious plan to provide rural road connectivity in all habitations with the population of 500 and above. An estimated 2102 habitations are yet to be covered. We will ensure that these villages are linked by all-weather roads within the Tenth Plan period.

44.   There are an estimated 12,000-km of unclassified roads in rural areas which are not being maintained either by the Highways Department or by the Panchayat Unions. The Government has decided to entrust the maintenance of such unclassified roads with the Panchayat Unions. During 2003-2004, Rs. 50 crores will be utilized for the maintenance of such roads from within the devolution share of Panchayat Unions.

45.   The Hon'ble Chief Minister, Puratchi Thalaivi  J Jayalalithaa is a strong votary of sanitation, cleanliness and hygiene.  This Government has initiated a massive programme for the construction of 12,618 Integrated Sanitary Complexes for women and children in rural areas. The first phase comprising 6309 sanitary complexes has been completed and in the second phase in 2003-2004, we propose to take up construction of the remaining 6309 such complexes and a provision of Rs. 104.42 crores has been made for this purpose. We shall endeavour to extend the Total Sanitation Programme, now operational in 16 districts, to the remaining 12 districts in the State. A “Clean Village Campaign” has been launched and village-level solid waste disposal will be given special attention in the coming year.  A provision of Rs. 75 lakhs for the Clean Village Campaign has been made to reward the best villages. 

46.    Rural housing will receive special attention in the forthcoming year.  During 2003-2004, 31,453 houses will be built under the Indira Awas Yojana( IAY).  The Budget includes a provision of Rs. 28.37 crores towards the State's share in this programme.  An estimated 16,164 Kutcha houses will be upgraded during 2003-2004.  The Budget includes a provision of Rs. 4.11 crores for this programme.

47.    A new survey of the status of rural drinking water supply in the State, as on 1.4.2002, shows that out of the total of 80,421 habitations, 28,623 habitations have an assured supply of drinking water and 51,294 habitations are only partially covered.  504 habitations still did not have reliable sources of drinking water.  I am glad to inform the House that out of these 504 habitations, 465 habitations have been provided with an assured drinking water supply in the current year.  The remaining 39 habitations will be covered in 2003-2004.  There has also been an impressive increase in the number of habitations which were earlier in the partially-covered category but now have assured water supply. The total outlay for Rural Water Supply under the Minimum Needs Programme for 2003-2004 is Rs. 411 crores.

48.     The new Swajaldhara Programme introduced by the Government of India in December, 2002, will be implemented with vigour in the coming year.   Under this programme, drinking water facility will be provided.  Members of the House will be glad to know that we hope to get the clearance of the World Bank for implementing the Tamil Nadu Water Supply and Sanitation Project for Rural Areas from the World Bank at an estimated cost of Rs.2300 crores in the coming year.

49.    Members of the House are aware that Rs.82 lakhs is being provided to every Member of the Legislature for the Constituency Development Scheme. In 2001-2002, due to the extreme financial distress it was not possible to release 50% of this amount.  During the current year, we have ensured that the full amount of Rs.82 lakhs for each Constituency has been released. We shall try to release 50% of the arrears of Rs. 96.35 crores before the close of the current financial year and the remaining 50% can be drawn in 2003-2004 along with the regular provision. The Budget makes an allocation of Rs. 240.88 crores under MLACDS for the coming year.

 

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