Deputy Chief Minister and Panchayati Raj Minister Pawan Kalyan is reshaping the state’s rural administration by dismantling the panchayat model introduced under former CM Jagan. On Monday, the state cabinet approved his proposals to strengthen the Panchayati Raj system.
The new plan restructures the entire panchayat system based on population and annual revenue. The cluster system from Jagan’s term is being scrapped. Instead, panchayats will now be classified as special, grade 1, grade 2, and grade 3 units, depending on size and income.
Panchayat officers will now be called Panchayat Development Officers (PDOs). They will receive regular promotions. The new framework replaces 7,244 clusters with 13,351 independent panchayats, each with its own secretary and support staff according to its grade.
Special panchayats will include villages with populations above 10,000 and annual revenues exceeding Rs 1 crore. Girijan villages with more than 5,000 people will also fall under this special category. These units will receive greater administrative support and funding.
Grade 1 panchayats will include villages with 3,000–10,000 population and revenues between Rs 30 lakh and Rs 1 crore. Girijan villages with 2,500–5,000 people will also be part of this category, ensuring better governance in tribal regions.
Villages with 2,000–3,000 population will come under grade 2, while those below 2,000 will be grade 3. Similarly, girijan villages with 1,500–2,500 residents will be grade 2, and those below 1,500 will be grade 3. This ensures every region receives attention suited to its size.
Special and grade 1 panchayats will be developed under the “rurban” model, combining urban facilities with rural settings. These areas will have city-style administration, public health systems, proper street lighting, reliable water supply, and planned engineering services.
New houses will be built following municipal design standards. Illegal constructions will be monitored by country planning executives. Rurban executives will also be eligible for promotions, with a clear exchange system between ministerial and field-level positions.




