To enhance and strengthen the institutional capacity of the local government system in Kerala to deliver services and undertake basic administrative and governance functions more effectively and in a sustainable manner, the Government of Kerala has formulated Kerala Local Government Service Delivery Project (KLGSDP).

The Project will benefit all the 978 Grama Panchayats (GPs) and 60 Municipalities in the State. Investments made by the GPs and Municipalities will indirectly benefit the entire population of the State outside the five City Corporation areas. The estimated cost of the Project is Rs 1195.8 crore and the project cycle is four years  from 2011 to 2015.

Project Components:

a.  Performance Grant (Rs 1097.56 cr)
b.  Capacity Building for local bodies (Rs 51.52 crore)
c.  Enhancing State Monitoring of the local Government system (Rs 15.44 crore)
d.  Project Management and Implementation- (Rs 31.28 crore)