The Central government has selected 50,000 gram panchayats in about 5,000 clusters to drive economic activities, development of physical infrastructure and human development.
 
The Department of Rural Development, in partnership with state governments, has completed ranking of 50,000 gram panchayats on the basis of parameters such as physical infrastructure, human development and economic activities.
 
Public institutions like Krishi Vigyan Kendras, MSME clusters, other skill development institutions will be involved in developing these clusters for enhancing productive employment and economic activities. The government's thrust is in organic agriculture, horticulture, manufacturing, services, and tourism, etc.
 
The government is also inviting private sector, especially young chief executive officers, start-ups and corporate social responsibility initiatives to join hands for the success of this project.
 
“For making panchayats poverty free through enhanced livelihood diversification and market linkages, state governments have selected panchayats on the basis of social capital,” a Union Ministry of Rural Development statement said.
 
These panchayats have strong women self-help groups or have strong leadership. Around 300 Rurban clusters and over 750 Saansad Adarsh Gram Yojana Panchayats have also been covered in the priority list. The government is trying to converge all the programmes across ministries and departments to diversify livelihood and eradicate poverty.
 
Progress of government initiatives over the years would be monitored both at the level of households and gram panchayat level to gauge the progress of these programmes.
 
About 20% of the gram panchayats have been covered so far. Over 8,600 gram panchayats/clusters fall in the 115 backward districts identified for focused action. The Department of Rural Development will support states in transforming these clusters/gram panchayats within a defined time frame, the statement said.