Currently, the Goa government's Directorate of Arts & Culture is offering grants to set up libraries in the villages. Basically, one needs a registered and audited non-profit organisation to run the same (registered under the society's act, or possibly a trust too)
A friend of mine, chartered accounted Dinesh Dias, found this good enough to try and work on the same. More than having a library for books, it might make a lot of sense to give village children (and adults too) access to the latest magazines, which are quite inexpensive in India. For more details on the scheme, just google for the Directorate of Arts & Culture (Goa government) citizen charter. Rgds, FN -- FN +91-9822122436 P +91-832-2409490 Updated: http://goabooks.wordpress.com