Gujarat expands Vatan Prem Yojana: 20+ village works open to public funding
Synopsis
Key Takeaways
The Gujarat government has approved sweeping amendments to its Vatan Prem Yojana, opening more than 20 categories of rural development works to public funding and broadening eligibility for individuals, organisations, and trusts to contribute towards village infrastructure. The changes were cleared at a state cabinet meeting in Gandhinagar on Wednesday, 20 May, chaired by Chief Minister Bhupendra Patel.
Key Changes to the Scheme
Government spokesperson and minister Jitu Vaghani said the amendments were designed to make Gujarat's villages 'more convenient and prosperous' through greater public participation and faster project approvals. The revised framework now allows 'any individual, organisation, trust or association having an emotional attachment with the village area' to participate as donors — explicitly including those living outside the district, state, or country.
'Any donor or person belonging to a village and residing outside the district, state, or country will be able to voluntarily contribute in order to repay their debt to their native place and participate in the service of their birthplace,' Vaghani said.
Funding Structure: Category A and Category B
Under the revised framework, projects are divided into Category A and Category B, with contribution ratios varying by implementing agency. Where a government agency executes the work, the state contributes 60% and donors 40% for Category A; for Category B, the state contributes 40% and donors 60%.
Where the donor selects the implementing agency, the state's share drops to 40% for Category A (donors: 60%) and 20% for Category B (donors: 80%). The tiered structure is designed to incentivise donor-led execution while retaining government oversight.
What Works Are Now Permitted
The expanded list of permissible works includes construction of smart classrooms, computer laboratories, and libraries in government schools; facilities for primary and community health centres and veterinary hospitals; anganwadi centres; kitchens and sheds for mid-day meal schemes; internal village roads; drainage systems; street lights; CCTV camera systems; wastewater treatment facilities; beautification of ponds on the lines of the Amrit Sarovar model; solar rooftop projects; ST bus stands; milk cooperative buildings; and community toilets.
Notably, the government clarified that developing gardens under the Panchvati Yojana or projects limited solely to pond deepening would not qualify under the scheme.
Streamlined Approvals at Three Levels
To cut delays, financial powers have been delegated across three tiers. District-level committees chaired by District Development Officers can approve projects worth up to ₹20 lakh. Head-of-department committees chaired by the Development Commissioner handle projects valued between ₹20 lakh and ₹1 crore. Projects exceeding ₹1 crore will be cleared by department-level committees chaired by the Additional Chief Secretary or Secretary of the Panchayat Department.
NRG Participation and the Road Ahead
Vaghani said the government expects the revised structure to draw Non-Resident Gujaratis (NRGs) and local donors into more active roles in village development, with the stated ambition of helping rural areas evolve into 'global villages.' The cabinet directed immediate implementation of the amendments. With donor participation now widened and approvals decentralised, the scheme's real test will be whether execution on the ground matches the policy intent.