Explanation:

Hill Area Development Program also focused on socio-economic development of tribal communities along with conservation of soil and water resources.
It focuses on people’s participation especially women with following objectives:

• Eco-restoration
• Eco-development
• Eco-preservation

As per Gadgil formula, special central assistance needs to be given to certain areas which need more financial support due to their backward situation.

• The financial assistance will constitute 90% assistance by Central government and 10% by State Government.
• Gudalur Tropical Gene Pool Garden (Tamil Nadu) is an example of participatory forest management (PFM).
• It was established in 1989 under hill area development programme in the gudalur forest division, Nilgiris districts of Tamil Nadu.

Gadgil Formula

• The Gadgil formula was formulated with the formulation of the third five-year plan for the distribution of plan transfers amongst the states.

The National Development Council (NDC) approved the following formula:

1. Special Category states like Assam, Jammu and Kashmir and Nagaland were given preference. Their needs should first be met out of the total pool of Central assistance.
2. The remaining balance of the Central assistance should be distributed among the remaining states on the basis of the following criteria:

• 60 per cent on the basis of population;
• 7.5 per cent on the basis of tax effort, determined on the basis of individual State's per capita tax receipts as percentage of the State's per capita income;
• 25 per cent on the basis of per capita state income, assistance going only to States whose per capita incomes are below the national average;
• 7.5 per cent for special problems of individual states.

Hence only statement 1st is correct.