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Question 33 of 39

Q.(a) Analyse the causes for Rural Indebtedness.

(OR)
(b) Explain the various sources of energy in Tamil Nadu.
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2024Subjective· 5mImportance★★★★★
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(a) Rural indebtedness stems from poverty, small holdings, costly moneylender credit, unproductive spending, ancestral debt and natural calamities. (b) Tamil Nadu draws energy from thermal, hydro, nuclear, wind and solar sources.

(a) Causes of Rural Indebtedness (in the Tamil Nadu HSC Class-11 Economics syllabus):

  • Poverty and low income — farm incomes are low and uncertain, so farmers borrow even to meet day-to-day consumption needs.
  • Small and fragmented holdings — tiny, scattered plots give low output and little marketable surplus, keeping farmers dependent on loans.
  • High-interest moneylenders — many farmers borrow from village moneylenders and traders who charge exorbitant interest, so debt keeps mounting.
  • Unproductive expenditure — heavy spending on marriages, festivals, religious ceremonies and litigation is met through borrowing.
  • Inheritance of ancestral debt — debts pass from one generation to the next, so a farmer starts life already in debt.
  • Natural calamities and crop failure — droughts, floods and pests destroy crops, forcing fresh borrowing to survive and re-sow.
  • Inadequate institutional credit — insufficient and slow-reaching bank/cooperative credit pushes farmers back to moneylenders.
  • Litigation and social customs — court cases over land and social obligations add to the debt burden.

(b) Sources of energy in Tamil Nadu:

  • Thermal power — generated from coal and lignite at Tuticorin, North Chennai, Mettur thermal stations and the Neyveli lignite power stations; the largest share of the state's power.
  • Hydro-electric power — from dams and falls at Mettur, Kundah, Periyar (Kodaiyar), Papanasam and Aliyar.
  • Nuclear power — the Kalpakkam atomic power station (Madras Atomic Power Station) and the Kudankulam nuclear plant (Tirunelveli). …

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