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AIADMK general secretary Edappadi K. Palaniswami has urged the Tamil Nadu government to release two months of alleged salary arrears and protect the jobs of contract staff associated with Vazhndhu Kattuvom. The demand appeared in a PTI report published by Hindustan Times on October 1, 2026. The reported arrears, staff numbers and service changes are claims attributed to Palaniswami; the materials available do not independently confirm them.

What Palaniswami is asking the government to do

Palaniswami called on the state to address the grievances of more than 4,400 employees whom he said worked for Vazhndhu Kattuvom, also known in official programme material as the Tamil Nadu Rural Transformation Project. He asked the government to release two months of alleged unpaid salaries and provide continued employment for the contract workforce.

He proposed two possible employment paths: retain staff under Vazhndhu Kattuvom 3.0, or integrate them into Magalir Thittam. These are proposals attributed to Palaniswami, not confirmed government decisions. The report does not establish eligibility rules or how either path would be implemented.

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What is claimed about staff and unpaid salaries

According to Palaniswami’s statement as reported by PTI, the workforce comprised more than 500 supervisory officers and around 3,900 field staff working at state, district and block levels. He said the employees had served on consolidated pay for between 10 and 18 years. These counts and service details have not been independently verified in the available material.

Palaniswami also alleged that workers had not received salaries for two months. He said state-level staff were relieved from service with effect from September 23, 2026. That reported claim concerns state-level staff; it does not establish that the entire workforce was relieved or formally dismissed. No payroll records, copy of the cited order or government response is available in the sources cited here, so the current payment and employment status is not established.

What the project does

The Vazhndhu Kattuvom Project’s official disclosure identifies it as the Tamil Nadu Rural Transformation Project. Its stated objectives include supporting rural enterprises, improving access to finance, expanding livelihood and employment opportunities, and developing skills.

Palaniswami described staff work as including support for farmer organisations and Farmer Producer Organisations, training and seed-capital grants, assistance to people with disabilities and other vulnerable groups, e-Seva centres, rural micro-credit, census enumeration, grassroots institutions and women’s empowerment. He also cited a micro-credit repayment rate above 95 per cent and more than 6.5 lakh direct beneficiaries. Those activity and impact figures are his claims, not independently audited results established by the cited official disclosure.

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Project funding and historical scope

The official disclosure gives a total estimated project cost of ₹919.73 crore, comprising ₹643.81 crore from the World Bank and ₹275.92 crore from Tamil Nadu, a 70:30 funding split. It describes implementation during 2017–2023 across 120 blocks and 3,994 village panchayats in 31 districts. These are historical project figures from an undated disclosure page, not current staffing totals or 2026 reach.

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Why accounts of the project’s naming differ

The PTI report attributes to Palaniswami the account that the scheme began in 2005 as the Rural Transformation Project and was renamed by the DMK government in 2021. Separately, the Tamil Nadu Rural Development and Panchayat Raj Department’s government-order archive lists a 2006 order titled “Renaming of the project as Vazhndhu Kaatuvom.” The available information does not resolve whether the later claim refers to a distinct naming decision or phase, so the dates should not be treated as one settled chronology.

What is and is not established

  • Reported demand: Palaniswami asked for two months of alleged salary arrears to be paid and for contract staff to have job security.
  • Reported employment proposal: He suggested continuing workers under Vazhndhu Kattuvom 3.0 or integrating them into Magalir Thittam.
  • Not independently confirmed: The cited materials do not verify the arrears, workforce figures, February 13, 2026 order, or the claim that state-level staff were relieved from service.
  • Payment outcome: The report records a demand, not whether salaries were later paid. It does not establish the present status of the workers’ pay or jobs.

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