The government had allocated Rs 81,000 crore for the purpose last year, he told reporters here.
He said a 15-page charter drafted by the representatives of panchayats at a conference held in New Delhi last month had been submitted to Prime Minister Dr Manmohan Singh and UPA Chairperson Sonia Gandhi on the last of day of the meet.
Earlier, Aiyar participated in a 'grama sabha' meeting held at Innambur village and received petitions from the people on their grievances.