The erstwhile Rashtriya Sam Vikas Yojana (RSVY) implemented in the five backward Districts of Tamil Nadu through the funding of Union Planning Commission was transferred to Ministry of Panchayat Raj and modified as Backward Regions Grant Fund.  Now, the scheme is implemented in the 6 Districts of Villupuram, Tiruvannamalai, Cuddalore, Nagapattinam, Dindigul and Sivagangai.

         The BRGF is designed to redress the regional imbalances in development so as to bridge the critical gaps in local infrastructure and other development requirements that are not being met adequately by the existing inflows.  The scheme focuses on strengthening the local governance through capacity building and professional support to local bodies for planning, implementation & monitoring their plans and improves the performance and delivery of critical functions.

BRGF consists of two funding windows:-

1. Capacity Building Fund meant to build capacity of the elected representatives and the officials associated with Panchayat Raj Institutions in planning, implementation, monitoring, accounting and improving the accountability & transparency.
2. An untied grant meant to be used by Panchayats and urban Local Bodies to address critical gaps in integrated development, identified through the participative planning process.

         The Government of India have sanctioned Development Grants under BRGF to the six BRGF districts for the years 2011-12 and 2012-13 as detailed below:
Allocation under BRGF for 2011-12 & 2012-13