Crowdfunding, Asset Monetisation: How Modi Government Is Making Panchayat More 'Atmanirbhar'

Published 6 August 2026 · politics

News india Crowdfunding, Asset Monetisation: How Modi Government Is Making Panchayats More 'Atmanirbhar' Crowdfunding, Asset Monetisation: How Modi Government Is Making Panchayats More 'Atmanirbhar' Reported By, Edited By Last Updated: August 06, 2026, 09:59 IST Under the asset monetisation scheme, a Panchayat can monetise any of its assets which may include a beach patch, a land parcel, a small mountain Rapid Read Prime Minister Narendra Modi (Credits: BJP/X) From asset monetisation and crowdfunding to bankable projects, the Centre is quietly attempting the biggest shift in rural governance since the 73rd Constitutional Amendment, and that is turning gram panchayats into self-sustaining local governments. For decades, panchayats have largely functioned as implementing agencies for centrally- schemes. Funds came from central and state governments, while villages executed projects. The financial architecture rewarded dependence, not entrepreneurship. That paradigm is now being challenged, and it has shifted as the Modi government has found out ways for the rural government to be self-sustainable too. The Ministry of Panchayati Raj has rolled out a series of reforms over the past month that seek to transform Panchayats from grant-seeking institutions into revenue-generating local governments. The philosophy is simple yet politically significant – a Panchayat that earns its own revenue is likely to be more accountable, financially resilient and development-oriented than one surviving solely on government transfers.

The move marks a significant policy departure. “Our focus is to make panchayats Atmanirbhar by enabling them to generate their own revenue. At the same time, we are promoting community participation through crowdfunding. Together, these initiatives create a sustainable, win-win model for local governance," said Vivek Bharadwaj, who retired as Panchayati Raj Secretary in July. “At the heart of this transition lies Atmanirbhar Panchayat, a national challenge-based programme that rewards innovation, not with grants, but with technical expertise. Unlike conventional schemes where funds are allocated upfront, Panchayats now compete by submitting commercially viable project ideas capable of generating sustainable Own Source Revenue (OSR)," said a senior officer involved in the policy decisions. Winning proposals receive end-to-end handholding, from feasibility studies and project design to financial closure, through a dedicated Technical Agency. The objective is to convert local ideas into bankable ventures capable of attracting institutional finance, CSR investments and private participation. “This is perhaps the first time rural local bodies are being encouraged to think like development enterprises rather than administrative units," said the officer. Under the asset monetisation scheme, a Panchayat can monetise any of its assets which may include a beach patch, a land parcel, a small mountain, or any other infrastructure abiding by the guidelines of the scheme.