Are our Panchayats Equipped to be Climate Resilient? Panchayats for a Sustainable Future.

Climate change poses significant challenges to rural India with erratic rainfall, droughts, cyclones, rising temperature and other extreme weather events. This jeopardizes livelihoods, food security, and ecological balance of the rural communities. The largely agrarian rural communities in India have been at the receiving end of ground water exploitation and corresponding crop loss exacerbated by prioritization of water intensive crops and shift to non-traditional crops. On the other side, rural India is burdened with the responsibility of managing these resources as most of the water bodies and even the trenching grounds are in rural areas.

As per National Compilation on Dynamic Ground Water Resources of India, 2024 reports, the average state of groundwater extraction in the country works out to be around 60.47%, with 16.93% of the area being over exploited and 11.47% being semi-critical. With regional disparities in the depletion of water table fueled by dependence on groundwater for irrigation and drinking water, emergence of peri-urban villages, and over-extraction of groundwater, rural communities are disproportionately affected by this. The scoping study supported by the Ministry of Women and Child Development highlights that climate vulnerabilities of women and children, painting a brim picture that they are 14 times more likely to die than men in a disaster situation.

Over the years, many panchayats have become hard pressed for resources with rampant urbanization, climate induced resource degradation, displacement in tribal areas and migration with resultant strain on all natural resources including land, water, flora and fauna. With over 27% of India’s population dependent on forests for their subsistence needs and cash.  Climate change disproportionately impacts rural women and tribal communities, who rely heavily on natural resources for livelihoods.

Differential Approach to Climate Action Initiatives:

Gram Panchayats (GPs)—India's grassroots institutions of local self-governance—are uniquely positioned to address these challenges by fostering climate resilience through localized solutions and actions. Empowered by the 73rd Constitutional Amendment, GPs have the mandate and potential to integrate climate considerations into their planning and development processes. The devolution of funds to panchayats by XV Finance Commission has increased the fiscal space available for panchayats. This also expands the scope for panchayats to integrate climate resilience into panchayat development plans.

The Eleventh Schedule gives panchayats authority over Natural Resource Management (NRM), which involves sustainably managing land, water, forests, and energy to protect the environment and support community livelihoods. Hence it is imperative that panchayats along with the CBOs become the anchors for localized and holistic climate action. TRI's efforts to expand Natural Resource Management (NRM) under MGNREGS through participatory micro-planning at the village level in Barwani and Manawar have demonstrated the power of collaboration. By involving local governments, administration, and community organizations, TRI has fostered meaningful discussions and actions focused on water conservation and groundwater recharge, driving grounded solutions.

Further strengthening TRI’s community-centric design approach, a Landscape Assessment Tool rooted in reality by capturing insights across age, gender and social groups they explored satisfaction levels across 13 critical dimensions. The tool-based discussion sparks critical reflections and lays the foundation to guide sustainable rural development and landscape resilience.

As per the latest data on sector-wise analysis, the Gram Panchayats (for FY 2020-21) allocated ₹142,703.17 crore across 34 sectors, with 25.24% for NRM works, reflecting initiatives towards climate preparedness. However, sectors like Minor Forest Produce (₹11.21 crore), Non-conventional Energy Sources (₹41.37 crore), and Tribal Welfare (₹18 crore) received minimal budgets, limiting broader climate vulnerability mitigation.

A closer look at the policy landscape shows the strategic decisions taken by the government to mitigate, and address climate related challenges through multiple schemes. Climate resilience programmes for rural areas include integrated natural resource management, disaster preparedness, and sustainable agricultural practices. Panchayats’ role in planning, implementation and monitoring of schemes like MGNREGS, Jal Jeevan Mission, integration of disaster preparedness in panchayat plans are pivotal in ensuring equity while addressing the root causes and challenges.

Policies and Systems in Place combating climate change:

A brief analysis of the budgetary allocations under various schemes shows a clear thrust towards localized climate action. The XV Finance Commission (for the period of 2021-22 to 2025-26) has allocated tied grants of Rs 71,042 crore for Drinking water, rainwater harvesting and water recycling, and another Rs 71,042 crore is earmarked for Sanitation Solid Waste Management. Similarly, funds have been allocated for disaster mitigation and disaster response to both central and state agencies; while the quantum of allocations is high, there’s no fund devolution to PRI to plan for the same.

Table 1: Share of allocations to NRM related works against the total allocations to MGNREGS works (in Rs. and %)

Source: MGNREGA MIS Report 6.3 Master Work Category wise Analysis

The data highlights huge and consistent priority in NRM related works within MGNREGS. While the estimated investment in NRM works appears to decline, this reflects the overall budget allocation for MGNREGS rather than a shift in focus. GPs can be trusted to uphold their commitment to climate resilience, as evidenced by the steady proportion of NRM works, ensuring effective implementation of sustainable practices that strengthen community resilience against climate challenges.

Jal Jeevan Mission seeks to deliver safe drinking water (55 liters per capita per day) to rural households, but faces challenges in scattered, water-scarce areas. Ineffective Village Action Plans (VAPs), due to poor implementation and lack of community involvement, undermine source sustainability. Gram Panchayats struggle with high electricity costs not covered by water taxes. Robust mechanisms for source sustainability and clean energy solutions are needed to reduce bills and ensure success, with trust in GPs to drive effective implementation.

Numerous schemes like PM Surya Ghar: Muft Bijli Yojana, the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme, and the National Solar Mission promotes transition to renewable energy sources. But the GPs are rarely positioned as development agencies in these schemes. The experiences from Kerala and Tamil Nadu in decentralized renewable energy highlights the need for gram panchayats taking the lead and training the local community for sustainability of initiatives.

Call for action

TRI’s experiences on ground show that the capacity of GPs in terms of fiscal space, availability of human resources, knowledge and skills are key to panchayats leading the way to climate resilience. To enhance climate resilience, Gram Panchayats must effectively implement schemes like MGNREGS’s NRM-focused works and GPDP’s risk-resilient interventions through convergence with line departments, timely funding, and forward-looking planning. Capacity building is essential to equip GPs with technical skills for accessing schemes and effective planning. In the upcoming XVI FC grants, additional/separate allocations must be made for peri-urban GPs, provide technical and financial support to develop disaster-resilient plans, countering risks from unplanned urbanization with sustainable infrastructure and climate-adaptive measures.

Empowerment of Gram Sabhas especially, in PESA areas for management of commons and equitable and judicious use of resources is essential.  Address funding constraints in PESA villages by ensuring access to specific funds like Tribal Sub-Plan (Odisha provides 20% extra funds under the Tribal Sub-Plan to PESA villages) and PM Adi Gram Yojana for integrated development.

Most importantly, ‘Whole of Government, Whole of Society’ approach which TRI has translated on ground as ‘Locality Compacts’ where panchayats, community-based organizations and local administration come together is imperative for successful implementation and sustainability of actions.  Trust in GPs’ ability to execute these actions amongst bureaucracy, political leadership is vital for sustainable, community-driven resilience.

The article is Co- Authored By:

Rejani Pavithran, Practitioner, Transform Rural India  based at PPiA unit with Department of Panchayati Raj (MP)

Ankita Akodiya, Consultant- Local Governance, Transform Rural India