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Why is the Nirmal Gram Puraskar awarded and to whom?

Answer
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Hint: Formerly known as the Absolute Sanitation Campaign, Nirmal Bharat Abhiyan (TSC). Projects were launched under this programme in rural India, covering 607 districts in 30 states/UTs.

Complete answer:
The Nirmal Gram Puraskar is awarded to the village Panch/panchs for the excellent work done by him/them in the Panchayat.
In order to ensure better health and quality of life for people in rural India, the Government of India (GOI) encouraged sanitation coverage in a campaign mode. In October 2003, GOI introduced an award-based Reward Scheme for completely sanitised and open defecation free Gram Panchayats, Blocks, Districts and States called "Nirmal Gram Puraskar" to add vigour to its implementation and presented the first awards in 2005 as part of its Total Sanitation Campaign flagship scheme.The Ministry of Drinking Water and Sanitation, the Government of India at all levels of PRIs, Gram Panchayat, Block Panchayat and District Panchayat, gave Nirmal Gram Puraskar until 2011.
It has now been agreed that with the change to Nirmal Bharat Abhiyan (NBA), the selection of Gram Panchayats for the 2012 award of Nirmal Gram Puraskar will be taken up by the States, while the Centre will continue to select the Blocks and District Panchayats. These guidelines were formulated accordingly.

Note: By embracing the 'community driven' and 'people-centered' strategies and community saturation approach, the strategy is to turn rural India into 'Nirmal Bharat'. A "demand-driven approach" should be followed with a focus on raising awareness and creating demand for sanitation facilities in households, schools and for a cleaner environment.