As per the modified byelaws, the CDS has to prepare and implement a 'CDS Action Plan'. This is a demand plan,consolidating the status of interventions in the areas of microfinance enterpreneurship, farming, social development activities etc. and indicating quantum of need in each of these areas. The CDS Action plan is to be integrated with the development plans of the local self governments.

The micro demand plans of the NHG are consolidated at ADS & CDS level to form the CDS Action Plans. After a process of consultation with the LSG Standing Committees and Evaluation Committees, the CDS Action plan is given formal approval by the LSG. Implementation is monitored by the evaluation committee.