To curb the rise of Naxalism in the backward districts of Dharmapuri and Krishnagiri, a Socio-economic Development Programme was introduced in the year 2003-04.  On introduction of the program, an amount of Rs. 5 crores was provided to the Dharmapuri district Socio-Economic Development Society for taking up certain socio-economic activities to address the naxal problem vide G.O.(Ms.) No. 11, RD(SGSY) Department, dated 14.01.2004. Subsequently an amount of Rs. 3 crores was provided to Krishnagiri district in the year 2004-05. In the year 2005-06, an amount of Rs. 2.5 crores was provided to the two districts under this program.  For the year 2006-07 and 2007-08, a provision of Rs. 7.50 crores has been made, of which Rs.7 crores has been allotted to Dharmapuri District and Rs.50 lakhs has been allotted to Krishnagiri District vide DRD & PR Lr.Roc.No.57068/07/IAY-2 dt. 22.1.2008, as approved in Govt. Lr.No. 26095/SGS.1/2007 dated: 14.1.2008 of Secretary to Government, R.D.&P.R. Department, Chennai.

        In the year 2007-08, as per approved action-plan communicated by DR&PR in DRD&PR Lr. Roc .No.57068/07/IAY-2 dt. 22.1.2008, construction of new houses, provision of water supply including replacement of motors and installation of street lights, subsidy linked credit to SHGs  and capacity building for rural youths have been taken up as follows :        

Table 1.8.1
Socio-Economic Development Program-2007-08
Dharmapuri District

Sl. No.	Component	Project Cost Rs. in lakhs
1	Construction of  New Houses for people in BPL List	395.00
2	Provision of Water supply including replacement of motors and installation of Street Lights in the identified clusters.	100.00
3	Subsidy Linked credits to SHGs 1.   Revolving Fund to SHGs    : Rs. 9.00 lakhs 2.   Economical Assitance to       SHGs                              : Rs.98.75 lakhs 3.    Physically handicapped,        Widows, destitute  women        and others as individual        assistance                      : Rs.47.25 lakhs	155.00
4	Capacity building for rural youths	50.00
	Total	700.00

For Krishnagiri District 125 new houses have been allotted for Rs.50 lakhs. IAY unit cost is adopted for construction of new houses.The Village Panchayats shall select the beneficiaries from SCs&STs/MBCs/Other communities in the ratio of 40 : 40 : 20.