Mr Rao also decided to increase the salary of sanitation workers to Rs 8,500 per month.
Mr Rao had earlier announced a 60-day action plan but the period was reduced to 30 days after eliciting the views of senior officers who participated in the review meeting on Friday that lasted seven hours.
It was also decided to conduct a workshop with all officers of the panchayat raj, rural development and forest departments at the Telangana Academy of Rural Development in Hyderabad on September 3.
As per the action plan, the sarpanches and panchayat raj officials have to undertake the removal of garbage and debris from villages and take up cleaning of drainages and identify land for construction of graveyards.
Mr Rao asked the finance department to release Rs 339 crore grants for the panchayats every month for eight months. He asked the officials to ensure to appoint a mandal-level officer to each village to supervise the implementation of the action plan.