(GIST OF YOJANA) Incentivisation of Panchayats

(GIST OF YOJANA) Incentivisation of Panchayats


Incentivisation of Panchayats


  • The Ministry of Panchayati Raj (MoPR) introduced Panchayat Empowerment
    and Accountability Incentive Scheme (PEAIS) during the year 2005-06 for States/UTs towards their performance on the extent of devolution carried out by them. Thus, PEAIS acted as a centralised intervention for decentralisation by States through devolution.

Categories of the Awards:

1. Nanaji Deshmukh Rashtriya Gaurav Gram Sabha Puraskar (NDRGGSP) was instituted in the year 2010 to incentivise, appreciate and encourage the Gram Panchayats of the country, for outstanding performance, through effective Gram Sabhas, especially in respect of creating improvements in the social and economic structure of the village. The main objective of instituting this award is to strengthen the institution of Gram Sabha and to highlight it as the institution for people’s participation, collective decisions, and social audit. This award is given to one GP/Village Council (VC) in each State/UT with award money of Rs 10 lakh each.

2. Deen Dayal Upadhvay Panchayat Sashaktikaran Puraskar (DDUPSP) was introduced during the year 2011, given to best performing panchayats (District, Intermediate, and Gram) in recognition of the good work done for improving the delivery of services and public goods. DDUPSP is given for general (for all PRls) and 9 thematic categories (only for GPs). The thematic categories are as follows:

  • Sanitation
  • Civic services (drinking water, street light, infrastructure)
  • Natural resource management
  • Serving marginalised section (women, SC/ST, disabled, senior citizen)
  • Social sector performance
  • Disaster management
  • CBOs/individuals taking voluntary actions to support gram panchayats
  • Innovation in revenue generation
  • e-Governance

This award is given broadly in proportion to the number of panchayats/Rural Local Bodies in the State/UT. Under this Award, an incentive money of Rs 5-15 lakh per Gram Panchayat (GP) [as per population], Rs 25 lakh per Block/Intermediate Panchayat, and Rs 50 lakh per District Panchayat is given.

i. Gram Panchayat Development Plan Award (GPDPA) was introduced during the year 2018, this award is conferred to best performing Gram Panchayats (GPs) across the country which has developed their GPDPs according to the State/UT specific guidelines prepared in line with the model guidelines issued by MoPR [or adopted as such]. This award is given to one GP/VC in each State/UT with award money of Rs 5 lakh each.

ii. Child-friendly Gram Panchayat Award (CFGPA) was introduced in the year 2019 for best performing GPs/VCs keeping in view that the basic component of social development is creating a conducive atmosphere for the healthy growth and development of children. This award is given to one GP/VC in each State/UT with award money of Rs 5 lakh each.

iii. e-Panchayat Puraskar is given to incentivise States/UTs to adopt and implement the Panchayat Enterprise Suite (PES) Applications/State specific Applications, automate the internal workflow processes of panchayats and equivalent Rural Local Governments, enable electronic delivery of services making them more transparent, accountable and effective as organs of decentralised self-governing institutions through adoption and implementation of the e-Panchayat Applications. There is no financial incentive under this award.

Achievements of the Scheme:

Improvement and refinement of criteria for awards is a continuous policy intervention adopted by the Ministry of Panchayati Raj from time to time. Major achievements/improvements made over the years under the scheme are as follows:

i. Introduction of thematic categories under DDUPSP: From FY 2015-16, nine thematic categories were introduced under DDUPSP to focus the attention of Panchayats on socially vital issues.

ii. An impetus towards greater transparency and efficiency: For a more efficient, transparent, and speedy processing, the entire process of filing nominations by Panchayats/Councils up to the final recommendation by States/UTs to Ministry of Panchayati Raj was made online with effect from the Award Year 2016.

iii. Institution of Gram Panchayat Development Plan Award (GPDPA): To encourage Gram Panchayats which have developed their GPDPs according to the State/UT specific guidelines prepared in line with the model guidelines issued by MoPR (or adopted as such), a new award namely. GPDPA was instituted during the year 2018.

iv. Incremental participation from Panchayats under National Panchayat Awards: As a result of vigorous efforts for creating greater awareness and motivation among Panchayats across the country for National Panchayat Awards, the level of competition has increased over the years as the total number of participants for the Award Year 2021 reached around 74,000 which is an increase of 28% over the previous year. This portrays an extensive outreach of National Panchayat Awards across the country.
v. Direct transfer of award money to awardee Panchayats: As an initiative with effect from the award year 2021, award money is directly transferred electronically to awardee Panchayats with the intent of eliminating any delays hitherto.



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Courtesy: Yojana