Under Article 243ZD of the Constitution, the District Planning Committee (DPC) shall be constituted at the District level in every State to consolidate the Plans prepared by Panchayats and Municipalities in the district and to prepare a draft development plan for the district as whole. The composition and functions to be assigned to the DPCs are decided by the State Legislature. While preparing the draft development plan, DPCs have to take into consideration (i) matters of common interest between the Panchayats and the Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation and (ii) the extent and type of available resources whether financial or otherwise. The Planning Commission has issued guidelines for preparation of district plans in August, 2006. A comprehensive Manual for Integrated District Planning has also been prepared in 2008. Moreover, Ministry of Panchayati Raj has issued guidelines dated 29.5.2009 to the States in this regard.
Grants to Panchayats are given under Backward Regions Grant Funds(BRGF), Thirteenth Finance Commission, etc. The formula and procedure for distribution among the Panchayats varies from scheme to scheme.
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