Backward Classes, Most Backward Classes And Minorities Welfare Department

Policy Note - 2006 - 2007

Demand No. 9

Minorities Welfare

The Central Government has notified five religious communities, namely, Muslims, Christians, Sikhs, Buddhists and Zoroastrians (Parsis) as national minorities. According to 2001 census, these five communities, together, constitute about 12% of the total population in Tamil Nadu. Universally, it is recognised that the protection of minorities is essential to stability, democratic security and peace which, in turn, are pre-requisites of economic growth and development of a nation. It is deemed necessary to create conditions in which the minorities are assured that their constitutional and legal rights are safeguarded, and educationally and economically they are at par with the mainstream.

Government of Tamil Nadu, inspired by the ancient Tamil philosophy of "ahJ« Cnu ahtU« nfë®" has always aimed at creating an enabling environment to foster a society that is both unified and diverse. The resolve of the Government to promote conditions necessary for the economic development of the minorities on one hand and to facilitate preservation of the essential elements of their identity, namely their religion, language, traditions and cultural heritage, on the other hand, is manifest in several initiatives taken by the Government. Establishment of the State Minorities Commission in 1989, changing the nomenclature of the Backward Classes and Most Backward Classes Welfare Department as Backward Classes, Most Backward Classes and Minorities Welfare Department in 1999, and constituting Tamil Nadu Minorities Economic Development Corporation in 1999, are the most noteworthy policy initiatives taken by the State Government aimed specifically at providing a special focus on the Minority Welfare.

2. Tamil Nadu Minorities Economic Development Corporation (TAMCO)

TAMCO was set up by the Government in 1999 to give effective fillip to the various schemes intended for minority communities in general and to provide special focus to economic development of minorities, in particular. The Corporation has an authorized share capital of Rs.500 lakhs.

2.1 The Mandate

The prime mandate of TAMCO is to provide concessional finance for self-employment to the minorities living below double the poverty line. The broad objectives of the Corporation include the following:

I. To develop and monitor employment generation schemes aimed at socio-economic and educational upliftment of the minority communities.

II. To arrange skill and entrepreneurship development training programmes.

III. To provide financial assistance to entrepreneurs from among the minority communities who venture to start new business in the tiny and small scale sectors.

IV. To assist directly or indirectly such trading commercial, industrial and general activities as may be considered necessary for the economic uplift of the Minorities.

V. To act as a channalising agency for the National Minorities Economic Development Corporation, New Delhi.

VI. To organize agriculture, industrial, animal husbandry and other service co-operative societies by members of the Minority Communities.

2.2 Major Schemes

The Corporation, through joint funding by the State Government and the National Minorities Finance and Development Corporation (NMFDC), has been implementing various welfare schemes in Tamil Nadu including the following:-

2.2.1. Individual Term Loan Scheme

Loans up to 95% of the project cost are provided to individual beneficiaries for projects with a maximum unit cost of Rs. 5.00 Lakhs. All loans are disbursed at a concessional rate of interest of 6%.

2.2.2. Micro Finance

In order to reach the poorest among the minorities, especially the minority women scattered in remote villages and urban slums who are not able to take advantage of the formal banking credit under the term loan scheme, small loans up to a maximum of Rs. 10,000 per beneficiary are provided to the members of the minority self help group at a concessional rate of interest of 4% to pursue a business of his or her choice.

2.2.3. Mahila Samridhi Yojana

The scheme, linking Micro credit with the training to the women members to be formed into Self Help Groups in the trades such as tailoring, cutting and embroidery etcetera, is being implemented by TAMCO in conjunction with NMDFC. During 2005-06, 40 minority poor women were given training in tailoring, knitting, and embroidery through NGOs at a cost of Rs.1, 80,000.

2.2.4. Vocational Training Scheme

The vocational training scheme aims at imparting skills in the targetted beneficiaries leading to self/wage employment.

2.2.5 Milch Animal Scheme

Financial assistance is provided to the Minorities to purchase milch animals through Aavin. Each beneficiary is provided with loan upto Rs.30,000/- to buy two milch animals.

2.2.6. Entrepreneur Development Programme

Under Entrepreneur Development Programme, 1000 Muslim Youth are selected from districts where Muslims are concentrated in large number and they are extended a loan of Rs. 25000/- each to enable them to pursue self-employment career.

2.2.7. Industrial co-operative Societies

Under this scheme, TAMCO facilitates members of the minority communities to organize themselves into Industrial Co-operatives. The members of the co-operative society are provided loans, at a concessional rate of interest of 6%, through participating banks. During 2005-06 loans to the order of Rs.118.50 lakhs were extended to 141 beneficiaries to buy Auto Rickshaws and form auto co-operative societies.

During 2006-07, TAMCO proposes to implement Minority welfare programme to the order of Rs.15.00 crores.

3. State Minorities Commission.

The Government, in 1989, set up the State Minorities Commission to safeguard the interests of both the religious and linguistic minorities of this State.

4.New Initiatives

4.1 Reservation for Minorities in Educational Institutions and Employment.

In Tamil Nadu, out of a total reservation of 69%, 50% is set apart for the Backward Classes, Most Backward Classes and Denotified communities. The Christians and Muslims are also benefited by this reservation as a very large percentage Backward Classes and Most Backward Classes within the minorities are eligible for this benefit. Nevertheless, the Government have decided to bring out a Legislation for providing reservation for Christian and Muslim religious minorities in all educational institutions and employment opportunities.

4.2 Prime Minister’s new 15 Point Programme

Prime Minister of India has announced a new 15-Point Programme for the Welfare of Minorities. A need had been felt to review and recast the 15-Point Programme, to sharply focus action on issues intimately linked with the social, educational and economic uplift of the minorities. The Prime Minister’s New 15-Point Programme for Welfare of Minorities focuses on:

I. Enhancing opportunities for education

II. Equitable share in economic activities and employment.

III. Improving the conditions of living of minorities.

IV. Prevention and control of communal riots.

Governments of all the States have been requested to implement the programme with due priority. The Government of Tamil Nadu shall take all necessary steps to implement the programme in the right earnest. A High Level Committee shall be set up to oversee the implementation of this important programme.