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Under this scheme, seven social parameters under which panchayats will be judged are sex ratio, education, hygiene, environment preservation, governance and social participation. Stars of different colours (mentioned below) are awarded to panchayats depending upon their performance in each parameter.
Gram panchayats scoring maximum in all parameters will be recognized as Indradhanush Gram Panchayats. They will get special grants for development works from Development and Panchayats Department of the State Government depending upon their performance.
Villages winning six stars will be entitled to get additional developmental works worth Rs 20 lakh. Villages with 5 stars rating will get additional developmental works worth Rs. 15 lakh. Villages with 4 stars will get additional developmental works worth Rs 10 lakh.

Various Colour Stars

Pink star: It will be awarded to those panchayats that make outstanding performance in improving sex ratio.
Green star: It is for protection of environment, white star for cleanliness,
Saffron star: It is for crime-free villages.
Sky colour star: It will be awarded to village that will have no drop out.
Golden star: It is for good governance.
Silver star: It will be awarded for participation in development of villages.

Rewards

Villages for achieving each parameter will be rewarded Rs 1 lakh. Villages having equal or more girl population will be given Rs 50,000 as bonus with their reward money. Similarly, villages which adopt Swachhta Mission will be given additional Rs 50,000 as reward.