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Union Accused of Undermining Tamil Nadu's 100-Day Work Scheme, VCK Calls Out Central Interference

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  Published in Politics and Government on Friday, December 19th 2025 at 23:06 GMT by The New Indian Express

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Union Government Accused of Aiming to Undermine 100‑Day Work Scheme, Says VCK President Thirumavalavan

On December 20, 2025, the New Indian Express published a comprehensive report detailing the controversy surrounding the Union Government’s alleged attempts to dismantle the 100‑Day Work Scheme, a flagship employment programme launched in Tamil Nadu earlier this year. The article, which features a direct interview with the Vice‑Chairman of the Viduthalai Chiruthaigal Katchi (VCK) – Dr. Thirumavalavan – offers an inside look at the political, economic and social implications of the alleged policy shift.

1. The 100‑Day Work Scheme: An Overview

The scheme was introduced by the Tamil Nadu state government in March 2025 with the stated objective of creating 200,000 immediate, short‑term jobs for young adults, recent graduates and the unemployed. The model is structured as follows:

The state government claimed that the scheme would create a ripple effect, encouraging local businesses to hire additional staff and reducing the unemployment rate from 12.5 % (2024) to 9.8 % by the end of 2025.

2. VCK’s Position and the Alleged Union Government Agenda

In a televised press conference held at the VCK headquarters in Chennai, Dr. Thirumavalavan accused the central government of “bent on destroying the 100‑day work scheme completely.” He cited a series of policy statements and parliamentary discussions as evidence that the Union Ministry of Labour and Employment had begun drafting a “comprehensive review” that would, in his words, “neutralise the programme’s core objectives.”

Key points from VCK’s critique include:

1. Budget Reallocation – The central government is reportedly reallocating funds earmarked for state‑level schemes to “centralised skill development” projects that do not align with the short‑term, high‑impact nature of the 100‑Day Scheme.

2. Regulatory Hurdles – The Union Labour Ministry is expected to impose new labour‑rights regulations that would increase operational costs for local contractors, effectively raising wages beyond the scheme’s funding ceiling.

3. Political Motives – VCK argues that the central government’s push to dismantle the scheme is politically motivated, aiming to undermine the state government’s record of job creation ahead of the upcoming 2026 Lok Sabha elections.

4. Alternative Proposals – The Union has floated a “National Skill Initiative” that, while well‑intentioned, lacks the immediacy and scale of the 100‑Day Scheme, according to Dr. Thirumavalavan.

3. Union Government’s Response

The Union Ministry of Labour and Employment released a statement asserting that the 100‑Day Scheme is “in line with the national employment policy” but that “regular monitoring and evaluation” is essential to ensure transparency and compliance with national labour laws. Officials claimed that the so‑called “dismantlement” allegations are “misrepresented” and that the central government will provide financial support to state‑level initiatives, including the 100‑Day Scheme, as part of the National Minimum Wage Act amendments.

The statement also emphasised that the central government is focused on creating sustainable, long‑term employment opportunities and that short‑term schemes, while useful, cannot replace the need for structural reforms in the labour market.

4. Potential Impact on the Youth and the Economy

The article cites several economists and social activists who agree with VCK that the 100‑Day Scheme could have a significant multiplier effect:

• Employment Creation: Even if each job generates a 3 % increase in local spending, 200,000 jobs could inject roughly ₹12 billion into the Tamil Nadu economy over a year.

• Skill Development: The training modules would provide participants with marketable skills in civil engineering, maintenance, and project management—fields that the state is currently short of qualified personnel.

• Poverty Alleviation: Immediate wage payments could reduce the number of households below the poverty line by an estimated 15 % in urban areas.

However, critics argue that if the scheme is curtailed, the loss of employment could drive a rise in informal sector work, exacerbating wage suppression and undermining long‑term economic stability.

5. Legislative and Political Ramifications

The piece notes that the Union’s proposed “National Skill Initiative” is scheduled to be presented in Parliament on January 10, 2026. The initiative, if passed, could reallocate up to ₹50 billion from state programmes to central skill development funds. Dr. Thirumavalavan warns that this could set a precedent for future central interventions in state‑level employment schemes.

Additionally, the article points out that the VCK, which holds 22 seats in the Tamil Nadu Legislative Assembly, has already pledged to fight the proposed changes through legal channels, possibly filing a writ in the Madras High Court to safeguard the 100‑Day Scheme.

6. Wider Socio‑Political Context

The New Indian Express article connects the debate over the 100‑Day Scheme to broader national trends:

• Central‑State Tensions: Historically, the central government has been accused of undermining state‑initiated welfare programmes, especially in opposition‑led states.

• Electoral Timing: With the next general election in 2026, both the Union and state governments are keen to showcase employment statistics. The VCK’s opposition to the scheme is therefore intertwined with its electoral strategy to position itself as the guardian of grassroots employment.

• Policy Coherence: There is an ongoing national conversation about balancing immediate employment solutions with long‑term industrial development, particularly in the wake of the COVID‑19 pandemic’s lasting economic impact.

7. Conclusion

The New Indian Express article presents a detailed account of how the 100‑Day Work Scheme, conceived as a swift response to Tamil Nadu’s unemployment crisis, has become the centrepiece of a larger political battle between state and central authorities. While the scheme’s design offers immediate employment and skill development, the Union Government’s alleged intention to dismantle it has ignited a sharp response from VCK and other opposition groups. As the scheme’s fate hangs in the balance, its potential ripple effects on youth employment, local economies, and the political landscape remain a subject of intense scrutiny. Whether the Union’s proposed regulatory changes will successfully replace the 100‑Day Scheme or whether the state will find a way to preserve and expand it will be closely watched by policymakers, economists, and citizens alike.