Section 8(2)(c) in Tamil Nadu Panchayats (Preparation of Plans and Estimates for Works and Mode and Conditions of Contracts) Rules, 1998
(c)In the case of any work to which a village panchayat contributes not less than twenty-five per cent of the estimate cost either from its own resources or by collecting contribution in cash from the public, the work may be entrusted to the village panchayat in which the work lies, if the panchayat passes a resolution to that effect, subject to the condition that where it is not possible to collect a twenty-five per cent cash contribution in advance, the contribution amount may be deducted from the bills at a rate not exceeding twenty-five per cent of cash bill;