G.O Ms No. 15 Dated 23.1.2004

Adi Dravidar and Tribal Welfare Department –Land Purchase Scheme – Orders- Issued

Recognising the importance of the land for the livelihood of poor Scheduled Castes/Scheduled Tribes in Tamil Nadu, a new scheme called Land Purchase Scheme for Scheduled Castes/Scheduled Tribes was announced during the Budget for 2003-2004. Grounded on the twin principles of equity and efficiency, the scheme aims to enhance the socio-economic status of the poor Scheduled Castes and Scheduled Tribes by providing land as an asset and various other assistance to improve the productivity of agriculture.

2) The Managing Director, TAHDCO has sent a proposal for the Land Purchase Schemes as it was decided that the scheme will be implemented by TAHDCO.

a. To enable the landless Scheduled Castes/Scheduled Tribes tillers to own land;

4) Under this scheme, each beneficiary can purchase and own a maximum of 5 acres of dry land or 2.50 acres of wet land including the land, if any, already owned by each beneficiary. The maximum unit cost will be Rs.2 lakhs of which a maximum of one lakh is for the purchase of land and a maximum of one lakh for the other components, such as land development, minor irrigation etc., The pattern of financial assistance will be 50% subsidy and 50% as term loan. The subsidy will be back ended subsidy. The subsidy will be provided by TAHDCO from Special Central Assistance (SCA)to banks who in turn will release the entire project finance to the beneficiaries.

5) A District Selection Committee shall be constituted for the selection of beneficiaries. The District Monitoring Committee constituted in Government Order 86 Adi Dravidar and Tribal Welfare Department dated 03.10.2002 will continue to monitor the progress of the scheme on regular basis by utilizing the services of Village Administrative Officer / Rural Welfare Officer in addition to the Extension Officer of Adi Dravidar Welfare. In the first year of implementation 6000 Scheduled Castes women and 1000 Scheduled Tribals women will be benefited through this scheme. The subsidy out lay of Rs. 30 crores for 6000 Scheduled Castes beneficiaries shall be met from Special Central Assistance to Special Component Plan and Rs. 5 crores for 1000 Scheduled Tribes beneficiaries shall be met from the Special Central Assistance to Tribal Sub Plan fund. No funding will be required from the State for the implementation of the scheme. The term loan can be provided by the various commercial banks on a consortium basis.

6) The proposal of Managing Director, TAHDCO was examined in detail by the Government . After due consideration the Government sanction the implementation of Land Purchase Scheme for the benefit of Scheduled Castes/Scheduled Tribes women The subsidy out lay for 6000 Scheduled Caste beneficiaries shall be met from Special Central Assistance to Special Component Plan and for 1000 Scheduled Tribes beneficiaries shall be met from the Special Central Assistance to Tribal Sub Plan fund. The term loan shall be provided by the commercial banks in the districts on a consortium basis. The scheme shall be implemented as per the guidelines annexed to this order. This scheme shall be continued as an ongoing scheme in the years to come.

7) The Government also direct that the District Selection Committee shall be constituted with the following members for the selection of the beneficiaries:

1.	District Collector	Chairman
2.	District Revenue Officer	Member
3.	District Manager, TAHDCO	Member Secretary
4.	Joint Director of Agriculture	Member
5.	Lead District Manager	Member
6.	Joint Registrar of Co-operatives	Member
7.	District Co-ordinators of Major Banks	Members
8.	Project Officer, Mahalir Thittam	Member

8) The District Monitoring Committee, constituted in Government Order Ms.No. 86 Adi Dravidar and Tribal Welfare Department dated 3.10.2002 for TAHDCO schemes, shall conduct the continuous monitoring of the progress of the scheme by utilizing the services of the Village Administrative Officer, Rural Welfare Officer in addition to the Extension Officer of Adi Dravidar Welfare.

9) The Government also direct that the Tamil Nadu Electricity Board shall provide electricity service connection on priority for the beneficiaries availing assistance under this scheme within 3 months from the date of application. 3000 beneficiaries shall be given priority under this scheme for the current year. From next year onwards, and on completion of service connections to Jeevandra Scheduled Castes/Scheduled Tribes beneficiaries, who have already applied and are awaiting for connection, the target coverage under Land Purchase Schemes for Scheduled Castes/Scheduled Tribes beneficiaries can be enhanced from 3000 number to 5000 number. During the next financial year, the target under the scheme will be enhanced from 3000 to 5000. For every service connection provided by Tamil Nadu Electricity Board, under the scheme, TAHDCO shall provide Rs. 10,000(Rupees ten thousand only )to the Tamil Nadu Electricity Board from the infrastructure fund under Special Central Assistance.

10) The Government direct that 75% of the Stamp duty and Registration fees shall be exempted for the beneficiaries under the scheme and 25% of the amount shall be borne by the beneficiaries, as part of the project cost. The exemption, so granted, shall be for one time, which is admissible to one generation of the beneficiaries.

11) The beneficiaries, who desire to avail assistance for Animal Husbandry and allied activities shall avail the financial assistance, as per the norms and guidelines issued by NABARD. The beneficiaries under the scheme can avail the crop loan from the Primary Agricultural Co-operative Societies and Commercial Banks. The beneficiaries will be provided with the comprehensive escort service by the Agriculture and Horticulture departments in the form of customized training, extension services and all other inputs provided under the ongoing schemes of the departments as the requirements of the beneficiaries.

12) The order issues with the concurrence of Finance Department vide its U.O 4024/FS/P/03-1 dated 12.12.2003.

vii. Comprehensive input assistance from Agriculture , Horticulture Animal Husbandry and other Departments.

i) Purchase of land: Each beneficiary under this scheme can own upto 5 acres of dry land or 2.50 acres wet land including the land, if any, already owned by himself and his family members.

ii) Development of Land: Land development activities such as land clearance, land leveling, shaping and construction of shoulder bunds etc., can be undertaken under this component. All norms of NABARD on this subject as on date will be applicable for this subject.

iii) Minor Irrigation: Under this scheme financial assistance will be extended for erecting bore wells, open wells, filter points, electric motors/oil engines/submergible pump sets in well bores, shallow tub wells, dug cum bore wells, Drip irrigation, Sprinkler irrigation, pipe lines etc., While extending financial assistance, all norms and guidelines issued by NABARD on the subject as on date, will be applicable. Any other circular issued by Central and / or State Government to regulate the use of ground water shall also be applicable.

iv) Animal Husbandry activities: If a beneficiary, availing this scheme, wants to undertake allied activities such dairy, poultry, sheep/ goat rearing etc., he can avail of financial assistance for such activities. The norms and guidelines issued by NABARD, as on date, for Animal Husbandry activities will be applicable for such financial assistance.

v) Electricity service connections on priority: Tamil Nadu Electricity Board, will provide electricity service connection on priority for agricultural pumpsets to the beneficiaries availing assistance under this scheme within 3 months from the date of application. In the current year 2003-04, Tamil Nadu Electricity Board can provide electricity service connections to 3000 numbers of service connections on priority under the Land Purchase Schemes for Scheduled Castes and Scheduled Tribes. From the next year onwards. and on completion of service connections to Jeevandara Scheduled Castes/Scheduled Tribes beneficiaries who have already applied and are awaiting connection, the target coverage under Land Purchase Schemes Scheduled Castes/Scheduled Tribes beneficiaries can be enhanced from 3000 number to 5000 numbers. For every service connection provided by TNEB, under this scheme, TAHDCO will provide Rs. 10,000/- to TNEB, from the infrastructure fund provided under Special Central Assistance. No charges will be levied by TNEB from the beneficiaries for such priority service connection.

Beneficiaries, under this scheme, can avail of crop loan, from the Primary Agricultural Co-operative Societies(PACs) and Commercial Banks. The scale of finance for different crops will be as determined by the State Level Committee for the particular year.

vii) Comprehensive input assistance from Agriculture , Horticulture Animal Husbandry Departments

Beneficiaries, under this scheme, will be provided comprehensive escort service by Agriculture, Horticulture, Animal Husbandry departments in the form of customized training, extension services and all other inputs provided under the ongoing schemes of the departments as per the requirements of the beneficiaries.

Exemption to the extent of 75% of the amount chargeable under Stamp Duty and Registration fees can be provided for beneficiaries and 25% of this amount can be borne by the beneficiaries, as part of the project loan.

(iii) Animal Husbandry Allied
Activities such as dairy, poultry etc., Rs. 1,00,000(maximum)

2.2 Each beneficiary is eligible to avail of finance for all the components of the scheme, as listed above or any one of the component or a combination of one or more components of the scheme.

2.3 For the purpose of valuation of the land for fixing the quantum of finance, the guideline value fixed by the Registration Department, for the particular piece of land, or the market price, whichever is lower, will be made applicable. The maximum quantum of finance for purchase of land is Rs. 1,00,000/- only.

2.4 As regards the unit cost for land development, minor irrigation and Animal husbandry and allied activities, the unit cost norms prescribed by NABARD, for such activities will be applicable for the purpose of fixing the quantum of finance. The maximum quantum of financing, for all such activities is Rs. 1,00,000/- only.

3.1 The beneficiaries should be Scheduled Castes/Scheduled Tribes women between 18-55 years of age. Land will be registered in the name of women beneficiary only.

3.3 The beneficiaries can be landless agricultural labourers or tenant farmers or share croppers or small/ marginal farmers but priority may be given to the landless agricultural labourers. 2/3 of the annual target will be earmarked to landless Agricultural labourers/ Tillers and 1/3 will be earmarked to Marginal farmers/ small farmers.

3.6 Maximum coverage of beneficiaries will be from Scheduled Castes and Scheduled Tribes women members of Self Help Groups.

4.1 The District Selection Committee shall select the beneficiaries according to the eligibility of the individual and viability of the project. The application in the proper format will be received by the District Manager, TAHDCO and forwarded to the Agricultural Officer for an ‘Assessment Report’ on the aspects of suitability of soil, value of standing crop, if any, potential viability of the proposed crop etc., The Assessment Report of the Agricultural Officer should determine the estimated value of costs and returns from the proposed activities and thus determine its viability. Based on the viability of the proposed activities in the application and the eligibility conditions of the beneficiaries, the selection of beneficiaries will be done by the District Selection Committee.

4.2) Wide publicity should be given throughout the state through News Papers, Radio and TV etc., At the District level wide publicity should be given in News Papers, Radio and TV etc., Intensive Participatory Rural Appraisals may be conducted at the village level, among the prospective beneficiaries. The cost of publicity and PRA exercises can be met out from Special Central Assistance fund.

4.3. District Level Selection Committee should judiciously select areas of Land which are located closest to the area where distribution transformers are already available, to the extent possible, to minimize cost of providing service connection by TNEB.

5.1) The land to be purchased should be selected by the beneficiaries themselves. The decision to purchase and sell land will be only of the buyer and seller of the land respectively. There will be no element of acquisition and distribution by Government under the scheme. Beneficiaries are to be encouraged to select the most fertile, productive, cultivable land.

5.2) The District level selection committee should encourage the beneficiaries to select areas of agricultural land having low price value, which can be provided minor irrigation facilities and where cultivation of commercial crops with high returns, can be encouraged.

5.3) The Agriculture and Horticulture department can provide comprehensive escort service to the beneficiaries under Land Purchase Scheme in the form of customized training, extension services and other inputs provided under the ongoing schemes of the departments, as per the requirements of the beneficiaries/ farmers.

6.1) The land Purchase, Land Development, Minor Irrigation works should be completed within 3 months after registration of land.

6.2) To improve the viability of the scheme, commercial banks may charge the most concessional rate of interest on the term loan component of the project.

6.3) The beneficiaries may be encouraged to purchase the land at one place and not in fragmented holdings to save production expensed.

6.4) The land purchased under this scheme, should not be sold within 10 years, or for the period of repayment, which ever is lower.

6.5) The beneficiaries should be assisted to go in for suitable high value crops depending upon the soil, irrigation and climatic conditions and also take up allied activities like dairy, poultry etc., by the Agriculture, Horticulture, Animal Husbandry and other Government Departments and these departments should integrate their schemes with these beneficiaries.

6.8) Further detailed guidelines, if necessary, in line with the above orders, may be drawn up and issued by TAHDCO for implementation of the scheme as an ongoing scheme.