Explanation:

• Panchayats Extension to Scheduled Areas Act (PESA) is a law enacted by the Government of India to cover the “Scheduled areas” which are not covered in the 73rd amendment or Panchayati Raj Act of the Indian Constitution.
• It was enacted on 24 December 1996 to enable Gram Sabhas to self-govern their natural resources.
• Under the PESA Act of 1996, the following provisions have been made for empowering Gram Sabhas:
• The Gram Sabha or the Panchayats at the appropriate level shall be consulted
  before making the acquisition of land in the Scheduled Areas for development projects
  and before resettling or rehabilitating persons affected by such projects in the Scheduled Areas.
• However, the actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the state level.
• Planning and management of minor water bodies in the Scheduled Areas shall be
  entrusted to Panchayats at the appropriate level.
• The recommendations of the Gram Sabha or the Panchayats at the appropriate
  level shall be mandatory for granting of prospecting license or mining lease for minor
  minerals in the Scheduled Areas.

Source: Laxmikanth