The Planning Commission has decided to prepare State Development Reports (SDRs) for all States and Union Territories of the country. The purpose for bringing out these reports is to provide credible independent quality reference documents on the development profile of the States. The SDRs aim at spelling out the constraints and challenges facing the States and suggest blueprints for their overall progress and prosperity.

Each SDR is being prepared with the assistance of reputed national level-agencies under the supervision of a Core Group, headed by a Member of the Planning Commission as Chairman and a representative of the concerned State government as a member. So far the SDRs for Assam, Himachal Pradesh, Jammu & Kashmir, Orissa and Punjab have been released.

The Tamil Nadu Development Report highlights that the State economy is now driven largely by industry and services, with agriculture accounting for less than 20 per cent of State Domestic Product. However, traditional sectors like agriculture and small industries cannot be neglected since they provide employment opportunities to a large number of population. Diversification of the rural economy to horticulture, dairy, fisheries, poultry and agro-processing has provided employment opportunities and reduced poverty.

The high level of urbanisation of the State requires massive investments in all the infrastructure areas - power, roads, ports, water supply and sewerage, and telecom. Reforms in these sectors, including public-private partnership are needed for future growth of the economy. The service sector, particularly Information Technology Services, Financial Services and Tourism have immense potential in Tamil Nadu.

While power is no longer a serious constraint, the scarce water resources of the State limit the growth of the economy in many areas. The finances of Tamil Nadu are better managed than most other States. The State is no longer on the verge of serious financial crisis, but still requires to take several reform measures including the implementation of the Value Added Tax. While the State is known for comparatively good administration, there is need for greater transparency and accountability. Local government institutions which are closer to the people need to be strengthened.

The Tamil Nadu Development Report lays out the past achievements as well as potential in various sectors of the State economy. The report also suggests policies and strategies that should be followed for future development of the State.

The Core Committee

Preface

Message from Deputy Chairman, Planning Commission

Message from Member, Planning Commission

List of Tables and Figures.

Executive Summary

1. Profile and Overview of Development

Natural Resources of Tamil Nadu
Water Resources of Tamil Nadu
Coastal Resources of Tamil Nadu
Fisheries Resources of Tamil Nadu
Mineral Resources of Tamil Nadu
Demographic Aspects of Tamil Nadu
Growth Rate
Rural - Urban Population
Tamil Nadu Economy: An Overview
Review of Growth and Development
Human Development
Tenth Plan Objectives

2. Demographic Structure and Employment Pattern

Introduction
Demographic Transition in Tamil Nadu
Demography and Labour Force
Workforce Participation Rates
Composition of the Work Force
Unemployment and Underemployment
Quality of Workforce and Employment
Conclusions and Policy Options
Policy Options

3. Agriculture

Livelihood
Land
Irrigation
Crop Pattern
Irrigation
Commercialisation
Subsistence Characteristic
Critical Inputs
Bio-Fertiliser
Horticulture
Capital Formation
Allied Activities
Terms of Trade
Cost Price Relationship
Profitability
Public Distribution System (PDS)
Food Subsidy
Off-Take of Rice
Women in Agriculture
Prospects

4. Industry

Background
Contribution to GSDP
Industrial Development in Tamil Nadu-Review
Tenth Plan Prospects

5. Power

Brief History
Growth and Performance of TNEB
Performance Review
Tenth Plan Prospects
Power Sector Reforms

6. Roads and Transport

Transport Network in Tamil Nadu
National Highways and State Highways - Tamil Nadu and Other States
Length of Roads - Tamil Nadu and Other States
Road Network in Tamil Nadu - Category of Road, Lane and Surface Type, District Level Variation
Resource Mobilisation Including
User Charges and Cost Recovery
Rural Roads Programme with
Loan Assistance from NABARD
User Charges and Cost Recovery
Toll Roads
Annuity Model
Road Fund Board
Management Improvements
Road Transport
Rail Transport
Ports
Port Policy of Tamil Nadu
Sethusamudram Ship Canal Project
Inland Water Transport
Airports

7. Urban Infrastructure

Urban Poverty
74th Amendment
Access to Housing
Access to Water Supply and Sanitation
Access to Electricity
Access to all Three Amenities
Status of Urban Water Supply and
Sewerage in Tamil Nadu
Urban Sewerage and Sanitation in Tamil Nadu
Schemes Under Implementation
CMWSSB
Municipal/Tamil Nadu Urban
Development Fund
State Finance Commissions I and II
Public-Private Partnerships
Regulatory Framework
Key Issues Relating to Urban Infrastructure
Improvement in the Quality of Urban Services
Limited Private Sector Initiatives
Limited Finances for Urban Infrastructure

8. Water Resources Management

Water Pollution
Water Pricing
State Water Policy
Issues in Water Management
River Basin Boards
Ground Water Regulation
Recycling and Reuse of Water
Eco-restoration of Rivers and Lakes
Inter-State Water Disputes
Interlinking of Rivers

9. Health

Health Outcome
Death Burden
Infant Mortality
Maternal Mortality
Death Rate
Disease Burden
Eliminated Diseases
Persistent Diseases and Their Control
Emerging Diseases and Their Control
Disability Burden
Population Burden
Fertility Level
Birth Rate
Population
Malnutrition Burden
Health Facilities
Health Services
Health Person Power
Medical Education
Health Logistics
Health Administration
Health Management
Information System (HMIS)
Health Legislation
Way Forward

10. Education

The National Policy on Education
The Structure and Management of School Education
School Educational Policies
Key Issues and Critical Factors
Current Situation at Elementary Stage
Elementary Education
High School and Higher Secondary Stage
Future Demand for School Education
Implications and Options
Financing School Education
Prognosis
DPEP Experience in Tamil Nadu
Quality of School Education
School Curriculum
Infrastructure
Educational Processes
Degree of Control
Financial Resources
Conclusion
Basic Considerations
Historical Context
Nature of Demand
Features of Higher Education in Tamil Nadu
University Governance
Administration of Universities
College Education
Arts and Science Colleges
Growth Pattern
Technical Education
Management Education
Community Colleges
Growth Strategy for Higher Education
Balancing Disciplinary Knowledge
Mobilising Finances
Compulsions for Fund Raising
Central Education Expenditure
Tamil Nadu Education Expenditure
Allocation Norms
Implications of Financing Trends
Financial Requirement
Financing Models
Traditional Sources
Non-Traditional Resources
Sliding Quality of Higher Education
Enhancing Educational Quality
Conclusions

11. Social Security

Social Security - Protective and Promotional
An Estimation of State and District Level Coverage
Study of the Quality and Performance of the FDRS/ARS Schemes
Study of the Performance of the Scheme
Occupation Specific Schemes of the State Government for Providing Social Security
Promotional Social Security
Integration with Other Child Development Schemes
Tamil Nadu Women's Development Project - Mahalir Thittam
Providing Social Security for All - Constraints and Issues
Other Social Welfare Programmes
Conclusion
The Path Forward

12. Financial Services Sector of Tamil Nadu

Banks
Recent Developments in Commercial Banking
Entry into Insurance
Co-operative Banking
Non-Banking Financial Companies (NBFCs)
Financial Institutions (FIs)
Housing Finance Companies (HFCs)
Venture Capital (VC)
Performance of the Financial Services Sector of Tamil Nadu
Banks
Non-Banking Financial Companies
Chit Funds
Nidhis
Institutional Finance
Insurance
Venture Capital
Housing Finance
Capital Markets
Performance Summary
State Initiatives

13. Information Technology in Tamil Nadu

Information Technology Policy Initiatives
Growth of the Information Technology Industry in Tamil Nadu
Information Technology Infrastructure
E-Governance Initiatives
Information Technology Education
Issues for the Future
Information Technology Institute of Tamil Nadu (TANITEC)

14. Tamil Nadu Tourism

Tamil Nadu Economy - Role of Tourism
Tourism Trends in Tamil Nadu
Business and Industrial Tourism
Religious and Cultural Centres - Pilgrimage Tourism
Historical and Heritage Tourism
Hill Stations
Nature and Wildlife Tourism
"Fruits to Roots" Tourism
Coastal and Beach Tourism
Health Care and Nature Cure Tourism
Tourism Strategy for Tamil Nadu
Tamil Nadu's Tourism Policy (1992)
Ninth Five Year Plan (1997-2002)
Tenth Five Year Plan (2002-07)
A Critique of the Tenth Plan
Tamil Nadu Tourism Development Corporation (TTDC)
Role of Other Departments in Tourism Promotion
Tamil Nadu's Capacity to Handle Greater Tourist Arrivals
Tourist Accommodation
Transportation Facilities

15. Finances of Tamil Nadu Government

Fiscal Trends: An Overview
Trends and Composition of Revenue Receipts
Growth and Composition of Expenditures
Indirect Subsidies
Public Sector Undertakings (PSUs)
Government Guarantees
Cash Reserves of the Government
Concluding Observations

16. Governance

Past-History of Local Governance in Tamil Nadu
Post-Independence Period
Post-Constitutional Amendment Phase
Urban Local Governance
Powers and Functions Entrusted to the Local Bodies
District Planning Committees (DPC)
Financial Health of the Rural Local Bodies:
Devolution of Funds to Local Bodies
Elections to Local Bodies
Some Major Issues in Local Governance
Capacity Building through Training
Towards Better Governance
Right to Information
Citizen's Charters
Tamil Nadu
Model Charter
E-Governance
Progress in e-Governance
Scope for Reform