Honourable Speaker Sir,

(A King who safeguards the welfare of his subjects by just and upright rule will be considered a divine being in human form.)

With these memorable words of Saint Tiruvalluvar, which so aptly describe the rule of our sagacious, munificent, visionary leader, the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa, I rise to present the Revised Estimates for 2004-2005 and the Budget Estimates for 2005-2006. I proceed with my task with the blessings of our noble leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa who with firm resolve, true grit, total dedication and crystal clear clarity of action has transformed Tamil Nadu from the abyss of gloom and despair at the end of the rule of the previous Government to a land of prosperity for all, abundant opportunities for its people and powerful growth marching steadily to the Numero Uno position among Indian States.

2. The people of Tamil Nadu gave a resounding mandate to the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa in May 2001, to rescue the State from fiscal penury, economic stagnation, insecurity and drift that the State found itself at the end of the rule of the previous Government. Today our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has fulfilled this mandate restoring Tamil Nadu to its erstwhile glory, all round development, prosperity and a happy life for its people free from the fear of violence and disorder. Tamil Nadu under the able and dynamic leadership of our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has left behind the shackles imposed by the dull, desultory and pusillanimous rule of the previous Government which only led to chaos and misery. It has taken a supreme effort by our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa to set right the financial position, take Tamil Nadu forward on a new development path and bring peace and prosperity to the people of Tamil Nadu. No one else could have achieved this daunting task in the face of such multiple and complex adversities. The very fact that every Tamilian today can stride purposefully forward, with head held high, is the best tribute that can be paid to our visionary leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa for this outstanding achievement overcoming all obstacles.

3. Hon’ble Members of this House may recall the totally hopeless fiscal position that engulfed the State in May 2001 when this Government assumed office. The very credibility of the Government was shaken with bills not being honoured and development works being suspended. It was virtually an impossible task to rescue the State from the depths to which it had sunk. Hon’ble Members of the House are aware that fiscal reform is not a goal in itself but a necessary means to ensure rapid development providing more employment, improved incomes and better quality of life to the people. When fiscal reforms to ensure rapid development became inescapable, our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa saw to it that the correction was made quickly and the poor were protected throughout the entire process. It is only in Tamil Nadu starvation deaths were totally prevented. In no other State has such a major fiscal adjustment been achieved in such a short span, while at the same time ensuring that the poor are completely protected from the rigours of fiscal adjustment. The success achieved by our Government in accomplishing fiscal reforms and taking the State back on the road to rapid development and prosperity is only due to the bold, dynamic, steadfast and compassionate leadership of our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa.

4. Hon’ble Members of the House are aware of the development paralysis caused in several States due to terrorism, insurgency, militancy and extremism, not to mention the incessant break down of law and order for routine reasons. In Tamil Nadu, people are guaranteed safety and security. It is easy to take this for granted. This would be a big mistake as we witness the incidents across the State border. We all have to join in saluting our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa for the indomitable, courageous, bold and daring leadership which has held the State together keeping at bay all those mischievous and fissiparous forces which always look for an opportunity to tear our social fabric apart. This is what makes our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa a leader among all leaders, a leader nonpareil, a person of clear conviction, uncompromising stance in the war against terrorism and extremism, meticulous planning, brilliant strategic interventions and firm faith in making the Tamil Nadu Police an effective instrument guarding the citizens from the travails of a soft State. The elimination of the dreaded forest brigand Veerappan and his gang, ridding the State of a murderous menace is an outstanding achievement made possible only by the unwavering and unflinching commitment and action of our leader. No praise would be excessive for the tireless, dedicated service of our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa in protecting and safeguarding the people of Tamil Nadu.

MEDIUM TERM FISCAL PLAN

5. Hon'ble Members of the House are aware of the Medium Term Fiscal Plan which I presented at the time of the Budget for 2004-2005 in February 2004. I am glad to inform the House that sound management of the State's finances has ensured that the targets set out in the Medium Term Fiscal Plan for the year 2004-2005 have been met in full. The updated Medium Term Fiscal Plan keeping in mind the twin objectives of promoting growth and development while at the same time providing maximum protection to the poor and needy with a fiscally stable and sustainable outlook has been prepared and is appended to my Budget Speech. It will be seen from this Medium Term Fiscal Plan that the process of fiscal consolidation is kept on track in 2005-2006 leading to further improvement to the fiscal position. The trend of reducing the Revenue deficit will be maintained with the objective of reaching a Revenue surplus situation by 2008-2009. The Twelfth Finance Commission has also indicated that both the Centre and the States should reduce the Revenue Deficit to zero by 2008-2009.

6. Hon'ble Members of the House are aware of the Fiscal Responsibility Act 2003 and the amendments to this Act in 2004. The Medium Term Fiscal Plan is presented as per the requirements of this Act which sets out the goal of reducing the ratio of Revenue Deficit to Total Revenue Receipts to less than 5% by 31st March 2008. The Budget Estimates 2005-2006 indicate that in 2005-2006 a level of 4.64% will be reached indicating that the fiscal situation has been significantly improved and is well within the targets and trend set out in the Fiscal Responsibility Act 2003. It is also important to note that only 5 States have implemented such Fiscal Responsibility Legislation and Tamil Nadu is among them. Now the Twelfth Finance Commission has made it clear that States will be entitled to considerable assistance only if they implement such legislation and manage their finances so as to reduce the Revenue Deficit on a sustained basis. The foresight and vision of our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa in bringing forward this legislation in Tamil Nadu at the right time will be apparent now.

7. Hon'ble Members of the House are no doubt aware of the Fiscal Reforms Facility created by the Union Government based on the recommendations of the XI^th Finance Commission for the period 2000-2005. Under this facility a State which shows good performance in managing its finances is given an incentive in the form of an annual grant. The excellent management of the finances of our State has been recognized by the Union Government, which has released the Fiscal Reform Incentive Grant for the fourth successive year to Tamil Nadu. Tamil Nadu shares this distinction with only a few other States in the country. I have spelt out in detail the action taken to set right the finances of the State and the steps taken to prevent the recurrence of the fiscal chaos and confusion that prevailed in the State by the end of 2000-2001. Hon'ble Members of the House will no doubt appreciate the measures undertaken by this Government under the leadership of the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa to prevent the kind of fiscal calamity that enveloped the State in 2000-2001 derailing the entire development process. The careful attention paid to the restructuring of the State's finances has ensured that the State can now make rapid strides forward in reaching development goals.

The Tamil Nadu Economy

8. The fiscal crisis by the end of 2000-2001 was simultaneously accompanied by a development crisis leading to a slow down of the economy. The extremely severe drought situation in 3 successive years made the recovery even more difficult. Hon'ble Members of the House are well aware of the 15-point programme enunciated by our leader Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa to take Tamil Nadu on to a higher growth path. This new strategy evolved by our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa has enabled the State to not only tackle the drought situation effectively but also come out of the low growth phase which had affected the Tamil Nadu economy. The new economic policy of this Government has been framed to take Tamil Nadu into a higher growth trajectory. The Tamil Nadu Equitable Growth Initiative will enable develop new approaches towards accelerated growth and development. The latest indications are that the Gross State Domestic Product in the current year will register a growth of more than 8% at constant prices. Thus it is clear that we have restored the growth momentum to the economy and the State can again look forward to a high growth phase characterized by increasing opportunities for the people of Tamil Nadu. With the strong revival of the Primary Sector, a good investment climate facilitating new starts in the manufacturing sector and a buoyant tertiary sector it is our conviction that Tamil Nadu has moved into a new high growth trajectory.

ANNUAL PLAN

9. Hon'ble Members of the House are aware of how the development process had totally collapsed when this Government assumed office in May 2001. Revival was made impossible by the enormous and deep rooted fiscal crisis which had gripped the State. Successive droughts made it even more difficult. All these factors led to a situation when planned development to reach important goals, such as the Millennium Development Goals, was in danger of going completely awry. It may be recalled how the Approved Plan Outlay of Rs.6040 crores in 2001-2002 had to be scaled down to Rs.5200 crores as the State simply did not have the capacity with the debilitating fiscal crisis. The Hon'ble Chief Minister decided to restore the State to an accelerated development path. This was accomplished despite an array of adverse circumstances. The Tenth Plan Outlay for the period 2002-2007 was set at Rs.40,000 crores, reflecting the confidence and boldness of the Hon'ble Chief Minister to take Tamil Nadu on the high road to all round prosperity. There were many who doubted this could ever be achieved. It is in this context that I am glad to inform the House that the approved Annual Plan Outlay of Rs.8001 crores for 2004-2005 will be achieved in full. Unlike several other States which promise large Plan outlays at the time of the Budget and never actually achieve then, in Tamil Nadu we have ensured since 2002-2003 that the Annual Plan Outlay is actually exceeded every year.

10. In the meeting with the Deputy Chairman of the Union Planning Commission on 30th November, 2004, the Hon'ble Chief Minister forcefully presented arguments for a higher Plan Outlay on the sheer dint of performance and secured a record Plan Outlay of Rs.9100 crores for 2005-2006. The Budget Estimates for 2005-2006 have been formulated to accomplish this much higher Plan Outlay of Rs.9100 crores in 2005-2006. It will be obvious that Tamil Nadu has been brought back from the development crisis of the late Nineties to a new accelerated development path. The Budget Estimates 2005-2006 indicate that total plan outlay has increased by 75% over the level in 2001-2002. This is an amazing turnaround made possible only by the vision and dynamism of our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa.

TWELFTH FINANCE COMMISSION

11. Hon'ble Members of the House are aware of the forceful plea made by our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa before the Twelfth Finance Commission in February 2004 when the Commission visited Tamil Nadu, that the practice of cutting down the shares of efficient and well performing States to reward States which performed poorly should stop. Convinced by these powerful arguments, the Twelfth Finance Commission headed by the eminent economist Dr. C Rangarajan has submitted its recommendations which have been accepted by the Union Government and announced in the Union Budget recently. Hon'ble Members of the House are aware of how the Eleventh Finance Commission reduced the share of Tamil Nadu in the divisible pool of Central Taxes from 6.637% to 5.385%, a massive reduction of 18.86%. The previous Government failed to prevent this fiscal calamity even when it was in power both at the Centre and in the State. The Twelfth Finance Commission's recommendations on principles of devolution as accepted by the Union Government indicate that for the period 2005-2010, Tamil Nadu's share will be 5.305% in the divisible pool of Central Taxes. Although this is slightly lower than the earlier level, there is no major reduction as feared earlier. The Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa has saved Tamil Nadu from another certain fiscal disaster.

12. The horizontal distribution between States is now to be governed by the following formula:

       o 50% based on per capita income on a distance basis.

       o 25% based on population.

       o 10% based on geographical area.

       o 7.5% based on Tax effort.

       o 7.5% based on fiscal discipline.

13. The Twelfth Finance Commission has recommended an increase in the total share of all States in the divisible pool of Central Taxes from 29.5% to 30.5%. This Government had sought an increase from 29.5% to 50%. While the increase recommended by the Twelfth Finance Commission is thus disappointing, it is gratifying to note that the Twelfth Finance Commission has made salutary recommendations enhancing the grant to meet the cost of relief and rehabilitation following natural calamities, increasing the grants to local bodies, providing grants for the maintenance of roads and buildings. These are welcome measures.

14. The Twelfth Finance Commission’s recommendations on substantial deficit grants to only 15 States leaving out States like Tamil Nadu is disappointing. Further substantial grants have been provided only to certain States for health and education, while denying the same to other States including Tamil Nadu which are doing well in these sectors deploying their own scarce resources for these essential social sectors, which is again an unfortunate development. All States have still to undertake considerable work in these sectors. Denying some States these funds is again a penalty for good performance by these States. In the grants for specific needs Tamil Nadu's share is most disappointing. It is important from a national perspective that the Twelfth Finance Commission should have ensured a more equitable and rational distribution of these resources.

15. The Union Government has accepted the recommendations of the Twelfth Finance Commission to provide debt relief to the States. Accordingly all the loans drawn till 31.03.2004 and outstanding from the State to the Centre as on 31.3.2005 are to be consolidated as a new loan and made repayable in 20 years with an interest rate of 7.5% per annum. This relief is conditional on the State adopting a Fiscal Responsibility Legislation. Further a debt write off scheme linked to the reduction of revenue deficit each year and containing the fiscal deficit to the level in 2004-2005 has also been announced. Although the forceful plea of our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa for debt relief to the States has been accepted, Hon'ble Members of the House have to note that stiff conditions on reducing the revenue deficit and containing the new borrowings to hold the fiscal deficit down have been prescribed.

16. Overall the Twelfth Finance Commission's recommendations could have focused more on rewarding efficiency and good governance in determining fiscal entitlements rather than take the beaten path of giving more funds to the so called backward States.

TSUNAMI RELIEF MEASURES

17. The tsunami killer waves struck the Tamil Nadu coast on 26th December, 2004, without any forewarning. This was an unprecedented calamity of a type never seen before. It has wrought immense devastation all along the coast extracting a heavy death toll of about 8018 persons, leaving lakhs of people homeless and destroying the livelihood of fishermen and others in the coastal areas. Our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa rushed to the tsunami affected areas on 26th December, 2004, itself to console the affected families and organize relief operations. Our leader again visited the affected areas on 27th December, 2004, and started the distribution of the immediate relief package on 30th December, 2004, at Cuddalore, Nagapattinam and Nagercoil.

18. The Hon'ble Chief Minister organized the relief operations in three phases, the first phase consisting of search, rescue, evacuation, organising the cremation/burial of the dead and organisation of relief camps, the second phase of providing immediate relief and the third phase consisting of permanent rehabilitation. We have now commenced the third phase of permanent rehabilitation after successfully completing the first 2 phases. The way our leader the Hon'ble Chief Minister Puratchi Thalaivi J Jayalalithaa galvanised the entire administration into an effective machinery to provide relief and succour to the affected persons has earned universal acclaim. The mobilization of sanitary workers from the entire State to retrieve and identify the dead bodies and arrange for the burial or cremation of the dead was instrumental in preventing any outbreak of disease which was feared. Doctors and health workers rushed in to provide excellent service to keep the threat of any epidemic at bay. Lakhs of men, women and children were accommodated in relief camps where food, clothing and shelter were provided.

19. This Government presented a detailed Memorandum detailing the devastation and damages wrought and seeking assistance of Rs.4800 crores from the Government of India to undertake relief and rehabilitation. In addition the Hon'ble Chief Minister proposed a coastal zone protection plan involving the creation of shelter belts, mangroves, rubble mound sea walls and concrete sea walls at a cost of Rs.5000 crores. So far the Government of India has sanctioned Rs.1726.72 crores through a sanction order dated 31.1.2005 and another order dated 24.02.2005. Except for the advance of Rs.250 crores no funds have been released to the State Government as yet. This Government urges the Government of India to ensure that the sanctioned funds from the National Calamity Contingency Fund are released immediately to take up the permanent rehabilitation works. This Government has continued to urge the Government of India to provide hundred percent subsidy for the permanent rehabilitation measures for fishermen and also provide the funds to the State Governments. Further this Government urges the Government of India to sanction additional funds to take up the reconstruction of assets lost in the tsunami disaster. The Government of India should also immediately announce the waiver of all loans due from fishermen to commercial banks and co-operative credit institutions.

20. This Government has so far sanctioned Rs.895.18 crores for both temporary relief works and permanent rehabilitation works. The Hon'ble Chief Minister has made it clear to the Union Government that all relief assistance should be routed through the State Government. This principled stand has been widely appreciated. The Budget Estimates 2005-2006 include a provision of Rs.1000 crores for undertaking relief and permanent rehabilitation measures in the tsunami affected areas consisting of construction of new pucca houses, livelihood rehabilitation particularly for fishermen and reconstruction of damaged infrastructure. We have also taken up with the Asian Development Bank and the World Bank special assistance to tackle the reconstruction and rehabilitation needs. The response of non governmental organisations, voluntary agencies and the corporate sector has been tremendous. Our Government has set out a clear framework for the continued participation of these agencies in the permanent rehabilitation measures.

21. Hon'ble Members of the House are aware of the issues relating to the permanent rehabilitation of fishermen. The work of providing fishermen with the means of livelihood is now underway in full swing and maximum progress will be made before the end of April 2005. A monthly sustenance package at a cost of Rs.1,526 per family for 3 lakh affected families at a total cost of Rs.137 crores has been announced by the Hon'ble Chief Minister starting from the month of February 2005. This will continue till the end of April 2005.

Police

22. The Budget Estimates 2005-2006 include a provision of Rs.1339.33 crores for the Police Department. The Hon’ble Chief Minister has taken pains to go into every aspect of the functioning of the Police Force and implemented a series of measures to ensure that the Tamil Nadu Police Force is the best in the country. The elimination of the dreaded forest brigand Veerappan and his gang has clearly shown that under the leadership of our Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa, the Tamil Nadu Police Force stands unrivalled in professionalism, courage, efficiency and performance.

23. The Hon’ble Chief Minister has placed great emphasis on the Modernisation of the Police Force. This programme has been implemented at a cost of Rs. 427.59 crores. Every Police Station has been completely modernised with computers, video cameras, latest weapons, hi-tech communication equipment and modern office appliances like fax, photocopier etc. The result is that the Police Force is now better equipped to deal with crime, law and order and ensure the maintenance of peace and tranquillity. The recruitment of 961 women Sub Inspectors and 10,737 constabulary has been completed in 2004-2005. Further recruitment process to fill up 2219 vacancies in the constabulary has started. This will go a long way to strengthen the Police Force.

24. A long felt need has been the establishment of a full fledged Police Academy. The Hon’ble Chief Minister has initiated this project at a cost of Rs.48 crores. Located at Oonamancheri village near Vandalur this will be a state-of-the-art facility designed to ensure that the Tamil Nadu Police always stays ahead in skills, discipline and effective performance.

25. The Hon’ble Chief Minister’s emphasis on the induction of women in the Police Force is well known. So far 195 All Women Police Stations have been opened. Tamil Nadu has the distinction of having the first All Women Battalion and the first All Women Commando Force in the country. This approach has ensured that people, particularly women, can approach the Police Force with the firm conviction that their grievances will be redressed effectively.

26. The Hon’ble Chief Minister has placed the highest emphasis on ensuring that the Tamil Nadu Police Force is provided with the best of facilities. 6,000 new houses have been sanctioned during 2001-2004 and this scheme will be further strengthened in 2005-2006. The grievance redressal machinery has been greatly improved, ensuring that the morale of the Police Force is always high.

27. The Hon’ble Chief Minister has announced the construction of a new office complex at a cost of Rs.30 crores at Taramani to house the office of the Director General of Police and other allied officers. This will symbolise the new heights reached by the Tamil Nadu Police under the able and bold leadership of our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa.

Prisons

28. The Government is facilitating the reform and rehabilitation of the inmates in prisons so as to integrate them into the mainstream of our modern society. Several new facilities have been provided to the inmates to bring about a change in their behavioural attitude and also to wean them away from crime in future. As a progressive measure, 10 Sub Jail/Special Sub Jails have been converted as Women Sub Jails/ Special Sub Jails which are exclusively managed by women staff. For the first time in the State, the remand of prisoners is extended through a unique Video Conferencing System. This scheme implemented at a cost of Rs.8.61 crores connects 62 courts with 16 prisons. A provision of Rs. 96.08 crores has been made for the Prisons Department in the Budget Estimates 2005-2006 as against Rs. 91.41 crores provided in the Revised Estimates 2004-2005. The scheme for Modernization of Prison Administration will be continued in 2005-2006 and a provision of Rs. 11.78 crores has been made for this purpose. The construction of the new Prison Complex at Puzhal is at an advanced stage and will be completed shortly.

FIRE AND RESCUE SERVICES

29. The Fire and Rescue Services Commission under the Chairmanship of Retired Justice Thiru K.S. Bakthavatsalam which was constituted to go into all aspects of fire fighting and rescue operations with a view to modernizing and equipping this Department to handle such situations in a better manner has just submitted its report to the Government. Necessary steps will be taken to implement these recommendations. It is proposed to take up a major programme to replace old fire tenders with new modern units. To develop core competence to handle search and rescue operations during disasters, about 20 commandos are being trained in every district. They have been given intensive training and have become an asset to the department. In the wake of the Kumbakonam school fire tragedy special emphasis has been given to preventive action including training, organization of fire drills and sensitising people to the hazards of fire. A total provision of Rs. 68.55 crores has been made in the Budget Estimates of 2005-2006 as against Rs. 61.64 crores in the Revised Estimates 2004-2005.

Judiciary

30. The long time aspirations of the people of Southern Tamil Nadu have been realized with the opening of the High Court Bench at Madurai in July 2004. This Government ensured the construction of this complex at a cost of Rs. 65.45 crores. A special programme for maintenance of Court buildings has been taken up at a cost of Rs. 7.58 crores. This Government is providing all the necessary infrastructure and resources with a special emphasis on the computerisation of the High Court and other Courts. A new District Munsif cum Judicial Magistrate Court will be started at Natham in Dindigul District. The outlay on Administration of Justice has been increased from Rs. 178.88 crores in the Revised Estimates 2004-2005 to Rs. 193.79 crores in the Budget Estimates 2005-2006.

31. The Government is providing all the necessary infrastructure for the Law Colleges and the Tamil Nadu Dr. Ambedkar Law University to make available well trained lawyers for the effective functioning of the Judicial System. In order to accommodate the increased student strength in the Government Law Colleges, construction of additional classrooms in Government Law Colleges at Tiruchirapalli and Coimbatore has been taken up. A separate building for the School of Excellence in Law in the Tamil Nadu Dr. Ambedkar Law University Campus at a cost of Rs. 1.30 crores has been completed. The Government has allotted 10 acres of land to the University for construction of the Tamil Nadu Dr. Ambedkar Law University Law College, Chengalpattu, and the construction work is in progress. During 2005-2006, it is proposed to construct a new hostel for the women students studying at the Government Law College, Tirunelveli at a cost of Rs.1.18 crore.

Revival of the Primary Sector Agriculture

32. In my last Budget speech, I had outlined the new strategy of this Government for reviving the Primary Sector, particularly agriculture. The implementation of this strategy has led to the resurgence of the Primary Sector. Hon’ble Members of the House will be glad to know that in the current year, the Primary Sector will register a growth of 16%, at current prices, over that in the last year. Overall, food grains output will surpass 90 lakh Metric Tonnes in the current year. This revival of agriculture has brought great joy to rural areas.

33. The strategy this Government has adopted comprises crop diversification, bringing land under green cover through Comprehensive Wasteland Development, encouragement to the efficient utilisation of water, adoption of precision farming, dissemination and adoption of new technologies, better market access to provide farmers improved prices for their products, close attention to the non-farm rural sector to promote employment and reinvigorating the cooperative credit structure to serve farmers better. We have made rapid progress under each of these components of the revised strategy.

34. The crop diversification movement has picked up momentum. Farmers are willing to consider alternate crops which consume less water, provided there are assured markets with proper pricing. Our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has set out an alternate crop strategy with the cultivation of less water intensive crops like Sweet Sorghum, Sugar Beet and Jatropha. The important point to be noted is that these crops are to be cultivated with a firm linkage to further down stream processing by sugar mills and bio-fuel plants. Contract farming arrangements will ensure the adoption of better technology and provide an assured market. The emphasis on Horticulture is also part of the crop diversification programme. The target is to double the production of Horticulture crops by the year 2011-2012. With the implementation of the Model Village Programme and the emphasis on training in Horticulture, all as part of the Horticulture Mission, a shift from low value added water intensive cultivation to high value Horticulture crops is already noticeable and will be strengthened further.

35. The Comprehensive Wasteland Development Programme launched by our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa is bringing the fallow lands owned by farmers under green cover. Good progress has been made in the current year. This programme will be continued in 2005-2006 with an outlay of Rs.35 crores. 1.50 lakh acres will be brought under tree crops and fodder.

36. With one of the lowest per capita availability of water and the high water stress caused by successive droughts, we have to ensure that farmers are encouraged to go in for efficiency in water use. This will be encouraged by popularising drip and sprinkler irrigation. This Government has decided to extend 50% subsidy for small and marginal farmers taking up drip and sprinkler irrigation systems and the existing 25% subsidy pattern will continue for large farmers. A provision of Rs.10 crores has been made for this State scheme. The precision farming system which this Government launched in Krishnagiri and Dharmapuri districts on a pilot basis has worked well. It is planned to expand this programme to other districts in 2005-2006 with an outlay of Rs.10 crores.

37. The adoption of new technology is most vital. The Tamil Nadu Agriculture University will be required to undertake specific projects for the main crops so that a major increase in productivity can be achieved within a specific timeframe. At present 12 districts have Farmers Training Centres. I am glad to announce that the Budget includes provision for establishing Farmers Training Centres in 11 more districts in the coming year. A new project to utilise Information Technology to bring to the specific knowledge of farmers new technology and practices will be implemented in 2005-2006. In order to bring extension services closer to the farmer, the Block Level Extension Centre will be revived so that the farmer will be enabled to access the necessary information and facilities at the block level.

38. It is important to ensure that farmers have access to new markets on a regular basis in order to provide better prices for their products. It is for this reason that this Government has launched Agri-Export Zones at Hosur, Ooty and Theni at a total cost of Rs.65.34 crores. This Government will establish a new Agri-Export Zone for Cashew at Cuddalore at a cost of Rs.10.36 crores.

39. Given the good prospects of the textile industry following the WTO regime from 1.1.2005, a determined effort to link cotton growers with cotton consuming mills on a contract farming basis will be intensified. Organic farming has now assumed importance both from the point of view of sustainable agriculture and based on the preference of consumers particularly in urban markets. Organic farming will be actively promoted particularly in areas close to urban markets.

40. Hon’ble Members of the House are aware of the benefits that have been realised following the implementation of the Rainwater Harvesting Movement by our leader the Hon’ble Chief Minister, Puratchi Thalaivi J Jayalalithaa. The Hon’ble Chief Minister has indicated that this movement should now be expanded into a major Watershed Development Programme whereby the entire State should be divided into Micro Watersheds where rainwater harvesting should be taken up. This Micro Watershed Development Programme can lead to lasting benefits in rural areas along with drought proofing agriculture in Tamil Nadu. The entire State has been mapped consisting of 126 major watersheds and 19206 micro watersheds. So far about 6000 micro watersheds have been taken up on a piece meal basis under different programmes over the last 20 years. The balance to be covered comprises 13206 watersheds covering 66 lakh hectares. It is important that the Watershed Development Programme is taken up in a big way with people’s participation utilizing all resources available.

41. Currently under different programmes it is possible to take up only about 300 micro watersheds for treatment in a year. This Government has decided to intensify the Watershed Development Programme by taking up 1000 new micro watersheds for treatment in 2005-2006. Apart from the existing programmes a new programme with assistance from NABARD will be launched to take up watershed development in a big way enlisting the support of NGO’s and voluntary organisations. This programme implemented with full participation of the people will ensure lasting benefits for the community and safeguard agriculture. The total outlay on Agriculture has been fixed at Rs. 854.41 crores in the Budget Estimates 2005-2006. 

Irrigation

42. Tamil Nadu has one of the lowest per capita availability of water in the country. The surface water potential has been completely tapped. It has been estimated that except for a little run off into the sea in a few years in a few basins there is very little surface water available which can be utilized for irrigation schemes. It is in this context that our leader the Hon’ble Chief Minister, Puratchi Thalaivi J Jayalalithaa has been insisting that the Interlinking of Rivers should be taken up immediately. In particular, the Hon’ble Chief Minister, Puratchi Thalaivi J Jayalalithaa has emphasized the need to take up the Peninsular River Water Grid linking Mahanadhi to Gundar. It is unfortunate that no action is being taken by the Government of India on this important project which will provide fresh impetus to growth in the Southern States. It is not apparent why when such multi State projects are taken up in other regions such a major project with high potential benefits to the South is being shelved. I am sure the Hon’ble Members of the House will join in urging the Government of India to immediately put this project on a fast track so that it can be implemented early.

43. Hon’ble Members of the House are aware that even in the year 2004-2005, the kuruvai crop could not be raised in the Cauvery delta as adequate flow of water was not made available by Karnataka. Only the surplus water from the reservoirs was allowed to reach Tamil Nadu. Fortunately due to a good North East monsoon it was possible to raise the samba crop. Even so, the total deficit as per the interim order of the Cauvery Water Disputes Tribunal not supplied by Karnataka was 39.62 TMC ft as on 28.02.2005. There is need for a proper mechanism with adequate authority to implement the orders of the Tribunal, which have been held to have the same authority as orders of the Supreme Court of India. During the final arguments on the allocation of water, this Government has urged that the Cauvery Water Disputes Tribunal shall give a scheme in detail and spell out in clear terms as to how the scheme should function while implementing the orders of the Tribunal. A duty is cast on the Government of India to ensure a proper scheme which will ensure regular flow in the river to take up the kuruvai and samba crops each year in the Cauvery delta.

44. Now an all out effort has to be made to ensure the efficient management of available water resources. Hon’ble Members of the House are aware that it was under the leadership of the Hon’ble Chief Minister, Puratchi Thalaivi J Jayalalithaa that the World Bank approved the Water Resources Consolidation Project – I for implementation in Tamil Nadu. Under this project 17 major basins have been formed for integrated management of the available water resources. The concept of better management of existing water sources through modernisation, improvement in efficiency and adoption of better management practices has been implemented in the Hanumanadhi sub basin of Tamiraparani basin in Tirunelveli district. With the results from this pilot project, the World Bank has been requested to expedite the approval of the Water Resources Consolidation Project-II. Pending clearance from the World Bank, we have decided to go ahead with this project in phases. The Budget Estimates include provision for implementing this project in the Palar basin at a cost of Rs.20 crores.

45. Hon’ble Members of the House are aware of the special efforts taken by this Government to secure funding from NABARD for undertaking irrigation projects. 28 such irrigation projects costing Rs.209.07 crores have been taken up with assistance from NABARD. 16 more irrigation projects with a total cost of Rs.42.38 crores have also been approved by NABARD which will now be taken up for implementation.

46. Hon’ble Members of the House are aware of the need to deepen and modernize irrigation tanks. The Budget Estimates 2005-2006 include a provision of Rs.62.50 crores for undertaking a new programme of deepening and reconstructing irrigation tanks under the control of the Public Works Department. Under this programme earth moving machinery will be utilised to properly deepen the tanks and full reconstruction will be taken up to ensure that each tank functions as a proper reservoir. Hon’ble Members of this House will greatly welcome this new initiative which will benefit 62,500 acres of farm land.

Co-operative Credit

47. Co-operative credit institutions play a significant role in extending credit to farmers for undertaking farm operations and also persons living in rural areas to undertake various economic activities. One of the most serious problems faced by this Government on assuming office in May 2001 was the serious deterioration in the financial health of the co-operative credit institutions. The successive droughts have added to the financial problems faced by these institutions. This Government has taken firm steps to provide additional funds to enable the co-operative credit institutions to be revived. It was only based on this major effort that the co-operative credit institutions have been enabled to extend crop loans in the current year to the extent of Rs.1037.68 crores as against Rs 616.59 crores in 2003-2004. Hon’ble Members of the House may note that this Government has thus ensured the revival of the co-operative credit institutions. Farmers have been enabled to obtain fresh crop loans by rescheduling their outstanding loans together with interest due to co-operative credit institutions as on 31.3.2004 amounting to Rs.2,598 crores into a term loan repayable in a period of 5 years with a moratorium of 2 years. Very few States have undertaken this major restructuring of repayments of loans due from farmers.

48. This rescheduling of loans from farmers has imposed a major financial burden on the co-operative credit institutions. The Budget includes a provision of Rs. 50 crores to provide fresh equity support to co-operative credit institutions so that they are enabled to continue their operations. We have undertaken the revival of the co-operative credit institutions without any assistance from the Government of India. This Government urges the Government of India to implement a proper scheme of debt write off for farmers affected by drought. This should cover not only loans taken from co-operative credit institutions but also loans taken from commercial banks.

Animal Husbandry

49. True to the saying that animal health is a nation’s wealth, this Government has accorded special importance to Animal Husbandry. The Special Livestock Protection camps have been continued in 2004-2005 with a focus on reaching remote villages where veterinary facilities are not adequate. In the current year 5005 such camps will be completed at a cost of Rs.1.85 crores. This programme will be continued in the coming year.

50. Hon’ble Members of the House are aware of the major expansion of veterinary care facilities undertaken by this Government. Since 2001, 316 Veterinary Sub-centres have been upgraded as Veterinary Dispensaries providing much improved health care facilities for animals throughout the State. In the current year itself 234 full fledged Veterinary Dispensaries have been formed. This brings the total number of Veterinary Dispensaries in Tamil Nadu to 1156 providing effective health care for animals throughout the State.

51. Tamil Nadu has made rapid strides in improving the quality of livestock. The Tamil Nadu Livestock Development Agency which brings together all breeding activities has been received well. Tamil Nadu has attained the first rank in India in carrying out the artificial insemination programme. 114 lakh artificial inseminations have been carried out in the period 2001-2004 leading to improvement in the quality of cattle in the State. The recently concluded Livestock Census in 2003 also indicates that there is a significant increase in the proportion of cross-bred cattle. The procurement of milk has shot up in the current year. As against an average daily procurement of 20.37 lakh litres in 2003-2004 it has gone up to 23.86 lakh litres in 2004-2005. This has been greatly facilitated by the increase of procurement price by Re.1/- per litre without imposing any burden on the consumer. Emphasis is now being given to clean milk production by ensuring better practices and better hygiene in the processing of milk. This programme which covers 8 District Cooperative Milk Producers Unions will be extended to all other Milk Producers Cooperative Unions during the year 2005-2006 at a cost of Rs.12.72 crores.

52. The concept of home stead farming consisting of better management of dry land agriculture with fodder crop and establishing integrated units with improved varieties of goat, is being promoted.

53. Training of women members of Self Help Groups in fodder production, dairy farming, sheep and goat rearing, backyard poultry etc., will be taken up in the year 2005-2006.

54. The total outlay for Animal Husbandry and Dairy Development in the Budget Estimates 2005-2006 is Rs.178.01 crores.

Fisheries Development and Welfare of the Fishing Community

55. In the background of the tsunami tragedy which has destroyed the livelihood of the fishermen in several districts along the coast, a comprehensive plan for development of Fisheries in the State will be drawn up. A task force will be constituted with experts who will be requested to suggest new approaches to improve the Fisheries Sector rapidly. Relief and rehabilitation of fishermen affected by the tsunami tragedy will receive priority in 2005-2006. A major part of the total allocation of Rs.1000 crores made in the Budget for rehabilitation works following the tsunami tragedy will be earmarked for providing housing, infrastructure and permanent livelihood for fishermen.

56. This Government has ensured that the Savings cum Relief Scheme has been extended to marine fisherwomen. In the current year under this scheme Rs.16 crores has been provided to 1,68,198 marine fishermen and Rs.6.05 crores has been provided to 50,993 fisherwomen. This scheme will be continued in the year 2005-2006 with an outlay of Rs.28 crores.

57. Hon’ble Chief Minister has recently inaugurated two new fish landing centres at Pulicat and Mudasalodai on 20.11.2004 constructed at a cost of Rs.2.49 crores. Seven more such fish landing centres will be built at a cost of Rs.12.48 crores. A project to upgrade infrastructure facilities at Chennai and Thoothukudi fishing harbours at a cost of Rs.12.42 crores will be taken up. The restoration of fishing harbours damaged by the tsunami waves will be taken up at a cost of Rs.9.94 crores. A special provision of Rs. 1 crore has been made to dredge bar mouths at estuaries. This will greatly facilitate proper breeding of fish.

58. We have to take steps to augment our marine fisheries resources. We have to adopt techniques like sea ranching and development of artificial reefs .The Hon’ble Chief Minister has been particular that such a programme should be launched in Tamil Nadu. I am glad to inform the House that this plan to replenish marine fisheries resources will be taken up at a cost of Rs.2.78 crores. Based on the progress it will be extended further to all feasible locations.

59. We have 8 major fishing harbours. This Government has sanctioned Rs.12.42 crores for the development of two fishing harbours at Chennai and Tuticorin to international standards. This Government has decided to launch a comprehensive programme for the development of all fishing harbours.

60. The total outlay for Fisheries has been fixed at Rs.79.91 crores in the Budget Estimates 2005-2006.

Environment and Forests

61. I am glad to announce that Phase II of the Tamil Nadu Afforestation Project financed by the Japanese Bank of International Cooperation will be implemented from 2005-2006 with an outlay of Rs.567.42 crores. The Budget Estimates include a provision of Rs. 85.89 crores for this project. Hon’ble Members of the House will be glad to know that this Government continued to implement this project in 2004-2005 even though Phase-I of the Project had come to a close. An outlay of Rs.69.03 crores in 2004-2005 has enabled this project to be continued without any let up. This has been greatly appreciated. Under this project in 2005-2006, 135 fringe forest villages and tribal villages adjacent to forests will be covered. Nearly 72,000 acres of degraded forest lands and other lands will be restored besides maintaining already planted areas.

62. The importance of shelter belt plantations and mangrove plantations has been highlighted when the tsunami waves struck the Tamil Nadu coast. The Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has directed that a programme of creating shelter belts should be launched and wherever possible mangrove plantations should be developed. The Budget includes an initial provision of Rs.7.48 crores for this programme. This will be expanded based on the requirements.

63. Sustainable development has become a necessity and no more a mere concept. We have to ensure that all our water bodies are kept clean and the supply channels are not polluted particularly those close to habitations. Our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has launched a new campaign to restore all water bodies adjoining habitations and to improve the water quality so that they can serve as water sources. This programme will be implemented in 2005-2006. The Budget includes a provision of Rs.5 crores for this programme.

]64. It is proposed to tackle the difficult problem of pollution of rivers by industrial units by initiating a dialogue with industry groups so as to ensure that they adopt cleaner technology. A Special Task Force will be constituted so that such plans can be implemented with full participation by the industry groups. The total outlay on Environment and Forests has been fixed at Rs. 228.44 crores.

Namadhu Gramam

65. Hon’ble Members of the House are aware that our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has launched the Namadhu Gramam programme on 15.8.2004. This programme covers all villages. Under this programme every village will be provided with infrastructure such as street lights, cement roads etc. In addition, a Village Panchayat will be entitled to a performance based additional assistance up to Rs. 3 lakhs, if it does well in specified social objectives such as 100% enrolment of children in schools, reducing infant mortality, eliminating female foeticide, poverty reduction and village sanitation. The intention is to reward a Panchayat which ensures progress in all these social sectors with people’s participation. The total outlay for this programme in 2004-2005 is Rs.200 crores. The Budget Estimates include a similar outlay in 2005-2006. Hon’ble Members of the House will appreciate the special efforts taken by this Government to involve village panchayats in socially relevant issues.

Housing for the Rural Poor

66. Hon’ble Members are aware that this Government has been allocating substantial resources for upgradation and construction of new houses in rural areas. After this Government assumed office in May 2001, 1,48,000 new houses have been constructed under various schemes at a cost of Rs.498.81 crores. 70,942 kutcha houses have been upgraded at a cost of Rs.66.96 crores. The provision under Indira Awas Yojana has been fixed at Rs. 35.13 crores during 2005-2006. This will ensure construction of 37,676 new houses and upgradation of 19,265 kutcha houses in 2005-2006.

67. We have finalised a new programme to upgrade thatched and kutcha houses to provide better shelter to the rural population. In order to ensure that the assistance is made available to all eligible families this scheme will be implemented through rural self-help groups. The unit cost of upgradation per house will be Rs.10,000/-, which will be mainly financed by a subsidy from Government of Rs.2500/- and a commercial bank loan of Rs.7000/-, the beneficiary having to make a small contribution of Rs. 500. It is proposed to cover one lakh such poor families during 2005-2006. The Budget Estimates include a provision of Rs.25 crores to provide the subsidy component.

68. Hon’ble Members of the House are aware of the distribution of house-site pattas to those who have encroached on unobjectionable poromboke lands. It is found increasingly difficult to provide house-site pattas with the available Government land. Our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has decided to launch a new programme of providing free house-sites for the rural poor with a provision of Rs.50 crores in 2005-2006. Under this programme, rural poor families needing house-sites will be identified and suitable house-sites will be provided by acquiring the necessary land. This programme will be dovetailed with the ongoing programmes of the Rural Development Department to ensure that the new habitations are provided with the necessary infrastructure together with proper sanitation. Under this massive new programme 2 lakh poor families will be given house-site pattas in 2005-2006. The Collectors will be empowered to take decisions locally on obtaining the land and making available the house-sites. Hon’ble Members of the House will greatly welcome this new programme.

Development of Rural Roads

69. Hon’ble Members of the House are aware of the importance of rural roads in improving the quality of life in rural areas and providing access to markets for agricultural products. Tamil Nadu has 41,192 kms. of Other District Roads and 5850 kms. of Other Roads mainly serving rural areas improved by the Highways Department. 1635 Kms. of Sugarcane area roads are also maintained by the Highways Department. Panchayat Unions maintain 32,053 Kms. of roads linking Village Panchayats. Village panchayats are responsible for maintaining 56,544 Kms. of village roads. We have taken up a comprehensive programme to upgrade all these categories of roads.

70. Out of 41,192 Kms. of Other District Roads, so far 23,156 kms. have been taken up for relaying from 2001. After taking into account roads which are in good condition, the balance to be relaid is 5,018 Kms. which will be completed in 2005-2006. The Comprehensive Road Development Programme includes a provision of Rs.250 crores for this purpose in 2005-2006. With assistance from NABARD improvements to Other District Roads and Panchayat Union roads is being taken up at a cost of Rs.214 crores. Improvements to Sugarcane area roads at a cost of Rs. 29 crores to cover 246 kms. are being taken up.

71. The category of Other Roads which are Panchayat Union roads upgraded by the Highways Department had suffered neglect in the past. A special programme to set right these roads at a cost of Rs.300 crores is now being completed. The Prime Minister’s Gram Sadak Yojana will be implemented by the Highways Department in 2005-2006 at a cost of Rs.160 crores. A special programme to improve existing Panchayat Union Roads with an outlay of Rs.100 crores under the Comprehensive Road Development Programme will be launched in 2005-2006.

72. Village panchayats are responsible for the maintenance of village panchayat roads. Under the "Namadhu Gramam" programme, village panchayats are being supported to take up cement roads. Village panchayat roads will also be taken up under the SGRY.

73. Hon’ble Members of the House will appreciate the comprehensive steps being taken to improve rural roads to provide the rural population an improved quality of life and also provide more employment in rural areas.

Drinking Water Supply and Sanitation in Rural Areas

74. Provision of protected water supply to the entire population is a key Millennium Development Goal. A fresh survey undertaken by TWAD Board indicates that out of 81,787 habitations in the State, safe drinking water supply has been provided to 74,546 habitations. The coverage is thus more than 90% of the population. Schemes to cover the balance are being taken up.

75. During 2004-2005, 6500 rural habitations have been provided protected water supply facility through Individual Power Pump schemes and Combined Water Supply Schemes (CWSS). 10,000 Mini Power Pumps have been installed to replace the existing hand pumps during the current year to provide improved water supply to rural households. Under the Swajaldhara Programme, 569 water supply schemes have been taken up for implementation at an estimated cost of Rs.23.85 crores. 9772 traditional drinking water sources have been revived in rural areas in the current year and 923 recharge structures are being provided to augment water supply sources at a cost of Rs.24.76 crores during 2004-2005.

76. This Government will take up schemes to ensure drinking water supply to 6,500 more rural habitations during 2005-2006. 5,000 more mini power pumps will be installed in 2005-2006. During 2005-2006, 1250 recharge structures will be put in for augmenting existing water supply sources at a cost of Rs.21 crores. Funds under SGRY and the Food for Work Programme will be utilized to ensure the rejuvenation and renewal of water sources close to habitations.

77. The Tamil Nadu Rural Water Supply Project at an estimated cost of Rs.3,000 crores with assistance from the World Bank is in the final stage of preparation and will be implemented in 2005-2006. This project is being developed on the principle of involving the community in the planning, execution and maintenance of water supply schemes on a demand driven approach.

78. Hon’ble Members of the House are aware of the great emphasis placed on rural sanitation, hygiene and cleanliness by our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa. The coverage of the rural population by improved sanitation has gone up from 15% in 2001 to 43.83% by the end of December 2004. The total sanitation campaign and the clean village campaign programme have been received well. I am also glad to inform the House that 12 village panchayats and one Panchayat Union (consisting of 10 village panchayats) in Tamil Nadu have been awarded the Nirmal Gram Purashkar for excellent performance in sanitation and cleanliness at the national level.

Rural Employment

79. Promotion of employment opportunities in rural areas is a key development goal. With the new initiatives in the Primary Sector employment opportunities are bound to increase. This Government has been implementing the Sampoorna Grameen Rozgar Yojana (SGRY) to provide employment to the rural poor. Under this programme in 2004-2005, 1.24 lakh works have been taken up to create useful assets in rural areas and provide employment opportunities amounting to 4.33 crore man days. 2.28 lakh metric tonnes of rice have been utilised for this programme in 2004-2005. This Programme has been implemented at a total cost of Rs.273.84 crores in 2004-2005.

80. The Government of India has recently introduced the National Rural Employment Guarantee Bill 2004 which has been referred to the Parliamentary Standing Committee on Rural Development. We welcome the intention of providing not less than 100 days of guaranteed employment in a financial year to every poor person in the rural areas who voluntarily comes forward to do unskilled manual work. However the entire financial burden of payment of unemployment allowance in the event it is not possible to provide such employment is being placed on the State Governments. It is our considered view that the payment of such unemployment allowance should also be fully funded by the Central Government. It has also been prescribed that 25% of the cost of the scheme including the payment of wages has to be borne by the State Government. This will constitute a huge financial burden on the States. The contribution by the States should be reduced to 10%. The nature of employment should be expanded to include various rural services so that greater flexibility is available. Women should constitute at least 50% of those covered under this programme.

81. With a focus on the non farm sector in rural areas, the promotion of rural industry and small business establishments is vital to provide additional employment opportunities. The New Anna Marumalarchi Thittam has helped to revive rural industralisation. So far 213 units with an investment of Rs.138.43 crores have commenced production providing employment to 8335 persons including 5638 rural women. 159 projects with an outlay of Rs. 103.16 crores will commence production shortly. 146 more projects at a total cost of Rs.108.51 crores are still being processed by commercial banks and financial institutions. We have requested the banks to expedite the sanction of these projects.

82. Our strategy for better rural employment comprises a basic guarantee of manual work together with increasing the opportunities available in the rural non farm sector. Various poverty reduction schemes including the Self Help Group movement will also focus on creating rural non farm employment in a big way. All these, together with the provision of rural infrastructure will provide additional employment opportunities in a big way in rural areas.

MLA's Constituency Development Scheme

83. Under the directions of our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa, I am glad to announce that the provision under the MLA’s Constituency Development Scheme in each constituency will be increased from Rs.82 lakhs to Rs. 1 crore in 2005-2006. The total provision for the MLA’s Constituency Development Scheme will be enhanced from Rs.192.70 crores in 2004-2005 to Rs.235 crores in 2005-2006. The revised pattern given below will be adopted from 2005-2006 for distribution and utilisation of the funds under this programme. 

84. I am sure the Hon’ble Members of this House will welcome this enhancement in the outlay for the MLA’s Constituency Development Scheme.

Rural Electrification

85. For ensuring quality supply of power in rural areas, the Tamil Nadu Electricity Board (TNEB) will take up schemes with an outlay of Rs.247.52 crores in 2005-2006. The TNEB will install 21 new sub-stations, enhance power transformer capacity in 20 sub-stations and erect 2300 new distribution transformers to improve the quality of energy supply in rural areas. Hon'ble Members will be glad to know that 45,000 new electricity connections for farm pumpsets will be provided to benefit farmers in 2005-2006 by the TNEB.

Improving Investment Climate

86. The Hon’ble Chief Minister has launched Tamil Nadu’s New Industrial Policy 2003. This policy sets out the road map for improving the investment climate in the State with particular reference to the Manufacturing Sector. The focus is placed on provision of quality infrastructure, quality energy supply, simplification of procedures and deregulation, reforms in State level taxation and labour reforms. It has been the effort of this Government to take specific action on each of these issues in order to provide a better overall investment climate in the State. Hon’ble Members will be glad to know that within a period of one year from October 2003 to September 2004, the Industrial Entrepreneur Memorandum (IEM) representing the new investments proposed in Tamil Nadu has shot up considerably. This clearly shows the marked improvement in the investment climate in the State. Messrs Hyundai Motor Company has just announced a second car plant with an investment of US $ 500 million or about Rs.2200 crores at their existing site near Chennai. It will be our effort to further improve the investment climate so that rapid growth in the secondary sector, particularly the Manufacturing Sector, can be realised.

Highways Development

87. Investment in road infrastructure plays a major role in the growth of the economy. The Hon’ble Chief Minister has recently announced a Comprehensive Road Infrastructure Development Programme at a cost of Rs.1050 crores to improve the State Highways, Major District Roads, Other District Roads and reconstruct and widen bridges along these roads. Under this programme 2064 kms of State Highways, 2114 kms of Major District Roads, 5018 kms of Other District Roads and 1600 kms. of Panchayat Union and Panchayat roads will be taken up in 2005-2006. The Budget includes a provision of Rs.750 crores for this programme. The Tamil Nadu Road Infrastructure Development Corporation which is being established will mobilize Rs.100 crores for this programme in 2005-2006.

88. The World Bank assisted Tamil Nadu Road Sector Project is being implemented in the State at a total cost of Rs.2160 crores. This project will upgrade 742 kms of roads along two major corridors and provide for the improved maintenance of 2000 kms of roads. Works on three large packages covering a length of 624 kms at a cost of Rs.954 crores have already started. 634 kms of roads have been taken up under the first year programme of the maintenance component costing Rs.180 crores and works are in good progress. Another 450 kms at a cost of Rs.158 crores will be taken up during 2005-2006 under the second year maintenance programme.

89. This Government has given special attention to the maintenance of the existing road network in the State. This was totally neglected during the late Nineties. The provision for maintenance of roads in the State has been enhanced to Rs.463.71 crores in the Budget Estimates 2005-2006 from Rs. 114.21 crores during 2001-2002. I hope that Hon’ble Members of the House will welcome this specific intervention being made by the Government to ensure proper maintenance of roads. The provision for Highways has been stepped up from Rs.2104.46 crores in the Revised Estimates 2004-2005 to a record level of Rs.2991.47 crores in the Budget Estimates 2005-2006.

Transport

90. The Tamil Nadu State Transport Corporations have earned a small profit in 2003-2004. Hon'ble Members will be glad to know that the Tamil Nadu State Transport Corporations are replacing 1325 buses this year and a further 2000 buses will be replaced during the next financial year. 4848 defective buses have been repaired at a cost of Rs.30.48 crores to make them road worthy and safe to travel in. This has completely upgraded the services offered by the Tamil Nadu State Transport Corporations. The steep hike in diesel prices by the Government of India has imposed an impossible burden. Inspite of this, we propose to take up this major programme of service improvements without any fare revision.

Water Supply and Sewerage

91. Providing safe water supply and sewerage facilities in urban areas is a very challenging task which calls for substantial new investment and proper attention to maintenance aspects. This Government has successfully planned and implemented water supply schemes for urban areas. In particular, our leader the Hon’ble Chief Minister Puratchi Thalaivi J Jayalalithaa has ensured that water supply to Chennai City is vastly improved by the completion of the New Veeranam Project in record time. Hon’ble Members of the House are aware of the real threat of evacuation faced by Chennai City last year. It is this Government which has taken up and completed the New Veeranam Project at a cost of Rs.720 crores. Early completion enabled, first the supply of 205 million litres of water per day (MLD) to Chennai City in May 2004 and thereafter the restoration of piped water supply in October 2004 even though the storage reservoirs still had no water. This is a crowning achievement of this Government and the residents of Chennai will always remember the resolute action of the Hon’ble Chief Minister to provide a lasting solution to Chennai City’s chronic water supply scarcity. The New Veeranam Extension Project will be taken up and completed in 2005-2006 at a cost of Rs.300 crores. This will enable supply from the Kollidam river bed to Chennai City during summer when the level in the Veeranam lake drops. Provision has been made in the Budget Estimates 2005-2006 for taking up this project and also the package of measures to protect and augment ground water availability in the villages along the banks of the Kollidam river.

92. The response for the establishment of a desalination plant at Chennai in the tender which was opened on 16.2.2005 has been good. The tenders are being evaluated and a decision on the implementation of the project will be taken shortly. Hon’ble Members of the House are aware that the total demand for water in Chennai is 840 MLD and this will be met by a combination of various sources including the recently completed New Veeranam Project and the proposed desalination plant.

93. During the year 2004-2005, 40 Combined Water Supply Schemes (CWSS) have been completed including the following major schemes:

• Combined Water Supply Scheme for Andipatti and Usilampatti Municipalities, three Special Village Panchayats and 406 rural habitations in Madurai and Theni Districts at a cost of Rs.74 crores to benefit 4.03 lakh people.

• Combined Water Supply Scheme for Manaparai, Marungapuri Unions covering 674 rural habitations in Tiruchirapalli District at a cost of Rs.69.20 crores to benefit 2.95 lakh people.

• Combined Water Supply Scheme for Thiruvarur and Thiruthuraipoondi Municipalities, 3 Special Village Panchayats and 642 rural habitations in Nagapattinam, Thanjavur and Thiruvarur Districts at a cost of Rs.133.05 crores to benefit 4.13 lakh people.

• Combined Water Supply Scheme covering Nallampatti, Peddampalayam, Kanchikoil and Pallapalayam Special Village Panchayats and 64 rural habitations in Erode District at a cost of Rs.12.47 crores to benefit 1.01 lakh people.

• Combined Water Supply Scheme covering 295 rural habitations in Coimbatore District at a cost of Rs.54.70 crores to benefit 2.18 lakh people.

94. During 2005-2006, it is planned to complete the following major schemes:

• Combined Water Supply Scheme covering 816 rural habitations in Dindigul and Karur Districts at a cost of Rs.85 crores to benefit 6 lakh people.

• Combined Water Supply Scheme covering Nagapattinam Municipality and 890 rural habitations in Nagapattinam District at a cost of Rs.98.85 crores to benefit 1.34 lakh people.

• Combined Water Supply Scheme covering 1399 rural habitations and 6 Special Village Panchayats in Namakkal District at a cost of Rs.126.85 crores to benefit 7.13 lakh people.

• Combined Water Supply Scheme covering Manur and 400 rural habitations in Tirunelveli and Virudhunagar Districts with bulk provision to Sankarankoil, Sivakasi and Thiruthangal Municipalities, Thiruvengadam Special Village Panchayat at a cost of Rs.78.70 crores to benefit 4.60 lakh people.

95. Comprehensive underground sewerage schemes in Tiruchirapalli, Tirunelveli, Thanjavur, Madurai, Karur and Inamkarur towns are under execution and will be completed during 2005-2006. Investigation works to provide underground sewerage systems in the remaining 24 District headquarter Towns have been completed and the project will be taken up at a total cost of about Rs. 800 crores in 2005-2006.

Power Sector

96. Hon’ble Members of the House are aware of the comfortable power situation in Tamil Nadu. This has been ensured by judicious management of power supply and the planned addition of new capacities. Hon’ble Members of the House will be glad to know that the installed capacity will be further strengthened by the addition of 263 MW in the current year. The total own installed capacity of TNEB has gone up to 5,531 MW. Together with the purchased capacity, the total capacity now available in Tamil Nadu has gone up to 9657 MW.

97. This Government has taken firm steps to plan for the addition of new capacity in future. Thus already plans have been announced to add 4000 MW of generating capacity in the State. This will include a 1000 MW plant to be established through a Joint Venture with the National Thermal Power Corporation (NTPC) at Chennai, a 1000 MW plant to be established as a Joint Venture with the Neyveli Lignite Corporation at Tuticorin and the 2000 MW Nuclear Power Plant at Koodangulam. I am glad to inform the House that we have revived the Jayankondam Lignite Power Project which will now be taken up as a Joint Venture between the Tamil Nadu Electricity Board and the Neyveli Lignite Corporation. This project will be taken up at a cost of Rs.5000 crores with a capacity of 1000 MW.

98. Tamil Nadu is committed to maintaining its eminent position in the country in the promotion and use of renewable energy. Tamil Nadu has the distinction of being the frontrunner in the country with a total installed capacity of 1920 MW from all types of renewable energy sources. Of this, Wind Energy alone accounts for 1664 MW. The State’s installed capacity as on 31.3.2004 constitutes 55