NRuM is also called as Shyama Prasad Mukharjee Rurban mission and aimed at strengthening rural areas by provisioning of economic, social and physical infrastructure facilities

The objective is to stimulate local economic development, enhance basic services, and create well planned Rurban clusters i.e Smart Villages.

Smart village is an area which possesses the economic characteristics and lifestyles of an urban area while retaining its essential rural area features.

It follows cluster based approach and the State Governments would identify ‘geographically Contiguous Gram Panchayats with a population of about 25000 to 50000 in plain and coastal areas and a population of 5000 to 15000 in desert, hilly or tribal areas.

These clusters would be developed by provisioning of economic activities, developing skills & local entrepreneurship and providing infrastructure amenities.

It provides Skill development training, Digital literacy, mobile health unit, electronic delivery of citizen centric services, e-gram connectivity, public transport, inter village road connectivity etc.

The funding will be through various schemes of the government through public -private partnerships. y In addition to it, there will be critical gap funding of 30% of project cost as central Government share for clusters.