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
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FN +91-9822122436 P +91-832-2409490
Updated: http://goabooks.wordpress.com

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